When looking for the funding, don’t just look for the cash look for the right people.
According to a recent study, over 94% of new business failed during first year of operation. Lack of funding turns to be the one of the common reason money is the bloodline of any business. The long, painstaking journey yet exciting one from the idea to revenue generating business needs a fuel name capital. Question arises, how do i invest in my startup?. Or, How to get investment for startups ?
Also, the funding depends on the type and nature of the business, but once you have realized that the need for investment below, are there some different sources for the finance.

- 10 Ways to Get Investment for Startup
- 1. Bootstrapping- A Great idea for startups investment
- 2. Crowdfunding – Newer way of startups investment
- 3. Invest in startups with- VC firms
- 4. Startup incubators
- 5. Pitching competitions
- 6. Use Bank loan for startups investment
- 7. Angel investors
- 8. Family and friends
- 9. Govt grants or program plans for investment for startups
- 10. Small business administration
10 Ways to Get Investment for Startup
1. Bootstrapping– A Great idea for startups investment
Self funding, also known as bootstrapping, is an effective way of startup financing, especially when you are just starting your business. First time entrepreneurs often have trouble getting funding without showing some performance, and a plan for potential success. You can invest from your own savings or can you? Can get from your family or friends to contribute.
2. Crowdfunding – Newer way of startups investment
Crowdfunding is one of the newer way of funding a startup that has been gaining a lot of popularity nowadays. It’s like taking a loan, preorder contribution or investment from more than one person at a time. This is how crowdfunding works, and entrepreneur will put up the detailed description of the business. Platform.
He will mention the goals of the business, plans for making the profit, how much funds he need and etc. Then the consumers can read about the business and give money if they like the idea those giving money will make online pledges with the promise of pre buying the product or give a donation, anyone. and contribute money toward helping the business that they really believe in.
Leader’s Tip
produce a persuasive business strategy and proposal that highlights the unique selling proposition and expansion possibilities of their startup
Hand picked for you-successful business transformation
3. Invest in startups with- VC firms
A venture capital Firm is a limited partnership or limited liability company that invests in a startup business with potential for a higher return on investment for their pool of investors. Most VC firms are actively hunting for startups that want to get funds in return for equities, but you can also find them directly through their websites or via startup events.
So, The best way to find VC firms is attending startups pitching sessions the best example is shark tank.
4. Startup incubators
Startup incubators don’t usually want equity unless they are also providing some kind of funding for startups. In most cases, they simply incomplete and mature the startups so that they can apply the accelerator programs, the duration of incubation can vary from three months to a year. Most startup incubators provide internships, office space and even held startup meet Angel investors, but there are some incubators that like startups to get funds from them in return for a share in the startup.
Leader’s Tip
Network with possible backers, enter startup contests, and use crowdfunding sites to raise money.
5. Pitching competitions
One way to get funding for your startup is through pitching competitions. Pitching competitions are perfect for those who are looking to get feedback about their startups. For example, Shark Tank investors, also known as sharks, offer funds for the equity shares in their startups. The entrepreneur of the Startups comes and gives their pitches and asks for their funding.
6. Use Bank loan for startups investment
You can also go bank loan for your startup. Banks usually charge somewhere between 12% to 15% markup on your money. Also, you will have a place a guarantee before you take the money from bank. This can be your house document or any other asset that belongs to you. The bank loan isn’t a safe option because it’s for some reason for a startup fails. You’ll be left with nothing .
7. Angel investors
Indian investors are private investors who invest during the seed funding stage. That’s why they’re called Angel because of the risk of investing in a new company is usually is higher than usual. So you can Angel investor for your companies fairly easy if you have the right connections, you can find them through your own network searching on social media websites. And then sending them your startup pitch or by attending startup events.
8. Family and friends
Most businesses prefer to take funding from family and friends, just as we highlighted in our example at beginning funding from the Friends and families called SEAT funding. You will have to give them a portion of percentage of your startup equity for taking the funds.
9. Govt grants or program plans for investment for startups
The Government of India has launched 10,000 crore startup fund in Union Budget 2014 to improve startup ecosystem in India in order to boost initiative product companies government has launched Bank of Ideas and Innovation Programs.
10. Small business administration
Traditional sources like the Small Business Administration are still good source for funding because more programs have been developed in recent years to stimulate the economy. They primarily offer small business loan and grants, but these may be exactly what you need and are available with fair terms without having any interference or expectations that will take stake in your business.
So these were the few options by which one aspiring entrepreneur can raise funding .
FAQs
How to get early investment for startup?
Bootstrapping , Crowdfunding ,VC firms ,Startup incubators , Bank loan
How do startups get money?
the funding depends on the type and nature of the business, but once you have realized that the need for investment below, are there some different sources for the finance.
Key Takeaways
- To sum up, here are the most important takeaways: a) Create an engaging pitch deck that emphasises market opportunity, competitive advantage, and financial predictions.
- Engage in Networking Join relevant networks online and in real life, and network with investors, VCs, and incubators.
- Exhibit momentum: To win over investors, you need to demonstrate that you can bring in money while also fulfilling your vision.