As per Venture Intelligence shared with economic times, in the first six months of 2021, Indian startups raised $12.1 billion from venture capitalists and private equity firms when compared to the last year, the overall funding was $1 billion.
How to raise funds for business in India?
In the context of Business Investment in India, it is one of the fastest-growing economies that offers investment opportunities across various sectors. As per the investindia portal India has the largest number of startups being added every hour for example (4 startups/per hour). In this year 2021, Start-Up India seed fund has launched a Rs 1,000 Crore to aid setting up and growth of new startups.
When running a business, all of us have a question regarding how do I find investors for a start up business in India? Funding refers to the money that is required to start and carry on the day-to-day business operations. Financing might be for manufacturing, sales, expansion, office spaces, marketing, product development etc.
Investors are willing but critical of investing in startups as they look beyond just your ideas and evaluate if your startup has the right services / products with enough market demands and potential to scale up. Most of the startups raise funding as they grow big and want to scale their business operations.
How to raise funds for business
You can get funding to your business through different funding options such as:
- Bootstrapping – Bootstrapping refers to the self-funding of your startup. If the requirement for the initial funding is small then bootstrapping is the right choice to start with. This will inculcate confidence before you go with further funding through investors.
- Crowd Funding – It refers to getting funds for your business from more than one person. The investors offer to fund depending on multiple parameters such as financial plan, business goal, idea, and ability to be profitable.
- Angel Investments – Angels investors are those who offer funding in exchange for ownership equity or convertible debt in the startup. They also offer advice and mentoring for your startup. Many prominent companies provide funding and these investors are very experienced who are very much focused and passionate to fund the winning ideas.
- Venture Capitalists – This is a startup funding, provided to early-stage startups that have high growth potential or the ones that may demonstrate high growth value. They invest in startups for an ownership stake or for exchange of equity in the enterprises they invest in. Usually, the businesses that venture capitalists invest in are biotechnology, information technology, etc.
- Funds through Business Incubators – Business incubator is an organization that helps individual entrepreneurs and startup companies by providing a comprehensive range of services such as business development, management training and venture capital financing.
- Startup Accelerators – They offer a short-term growth program that helps in promoting a few years of growth. They help in the growth of the startup’s company by providing valuable feedback, networking opportunities, and seed investments.
If you want to raise funds for your business in sectors of IT, ITES, Automobile, Banking, Shipping, Cargo, Public Transport facility to just name a few, wait no further just please feel free to contact Hyderabad Angels @ 040 – 4048 4444 and email at info@hyderabadangels.in
