Acquiring a funding for a start-up business has never been so easy as it is now. If you have a good plan and a scalable revenue model, there are many options to get capital investment.
Lets have a look.
Two Way Funding
Generally startups raise capital through external and internal funding. Internal funding involves personal saving, credit card, borrowing money from friends or relatives etc.
External funding sources are so many. One can take small business loan from banks under Pradhan Mantri Rojgar Yojana 2024, Angel investor, Crowdfunding and Venture Capital. Keep in mind about your requirements, the terms & conditions of funding and repayment schedule.
Pradhan Mantri Rojgar Yojana 2024
Under this scheme, all unemployed youth can be funded a capital of Rs. 5 lakhs to Rs.50 lakhs. Interesting things is that the borrower has to re-pay only 65% of the amount. Rest 35% loan amount is subsidized by the government. For Example, if you take a loan of Rs.100,000, you have to pay only Rs.65,000. Rest Rs.35,000 will be exempted by the government. To apply, click here : https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
Angel Investor
These are private sector rich investors who funds the startup. They lend money in lieu of equity ownership. Angel investors are also called as informal investors, private investors, seed investors and business angel. There are many startups in India in which they have played a major role in upscaling the turnover. Generally, their investment range from $200,000 to $3,00,000 (INR 1.6 Crore to 2.4 crore) and may ask equity ownership of 5-30%. Some of the Angel Investors are Binny Bansal of Flipkart, Kunal Shah of Cred and Vijay Shekhar Sharma of PayTM.
Venture Capital
While angel investors are individuals, venture capitalists are a part of company which manage funds of their investors. They usually invest in a mid-size business and the amount can be close to or more than $1 million (INR 8 crore). They may ask for equity ownership of 10-80%. Some of the VC companies are Accel India, Matrix Partners India and Blume Ventures.
Crowdfunding
One can also opt for crowdfunding if traditional investment methods are not suitable for the business. There are many platforms which helps small size entrepreneurs. Here is the list, check out all the sites.
Have an idea? What is stopping you to start your own Business?
