How to Get Funding or Investment for Your Startup?

You’ve finally got that brilliant idea, and now you’re ready to implement it. You might have finalized your business model, chose a co-founder and made up your goal pyramid. But after all, one big hitch might stop you from taking a step forward in pursuing your dream, i.e. lack of funding. A recent study says that over 92% of business fail during the first year of operation due to lack of funding. In business, whether it’s a start up or a well settled one, money is considered to be the bloodline. You need a capital to convert your idea into revenue. This is the reason, why almost all entrepreneurs ask themselves – ‘How to get funding for my Startup?’ It is true that starting a company is not so easy, but one the same contrary, ‘how to get funding or investment for your Startup’ is not hard as well.

When and how much funds you need for your business totally depends on the nature and type of your start-up. But at times, you can realize that there is a need for fund raising. What to do at that moment? Below given are some funding options which can obviously help you to know how to get funding or investment for your startup.

1. Bootstrap your Start-up Business

Bootstrapping simply means self-funding. If you are on the way to begin your new business, bootstrapping is one of the effective ways to get funding for your startup. Bootstrapping means you can invest from your own savings or your hard earned money. This is an effective way of funding your business because you will be investing your own money and you will have the potential to dedicate fully in your start-up operations. Bootstrapping can be advantageous because through this you can grow an audience or user base, which can lead to revenue or profit in your business before you seek out for some additional funding source.

2. Seek Crowdfunding Options

 Crowdfunding is a popular way which you can apply to get funding for your startup. It actually works as a contribution of investments from many persons involved at the same time. There are many Crowdfunding platforms available where you can make your strategy in involving gaining financial contributions as a startup fund for your new business. There are many people out there who can help a business in an initial stage, if they really like the idea. You can take the funds as a loan, contribution or a pre-book amount of your service. It depends on your deal with the crowdfunders.

3. Angel Investment

If you are an entrepreneur, you must have heard about ‘angel investments’. Angel investors are actually those individuals who have a keen interest in investing into startups. A pre-requisite for you to get funding for your startup from any angel investor is that your business idea must be beneficial and attracting for them. Apart from capital, they can also mentor you in your new startup. Many renowned companies have been helped by angel investors. Naming a few, some of them are Google, Alibaba and Yahoo. Create some excellent proposals and knock their doors, you can be benefitted.

4. Bank Loans

Usually, entrepreneurs seek financial help from the banks firstly to get funding. Bank provides two types of financing for businesses, one is capital loan and the other is funding. You will have to share your business plan and valuation details with the bank, based on which your loan will be sanctioned. Few banks also offer collateral free business loans. You can check with your existing bank manager, as it can be a hassle free way to get funding for your startup.

5. Get a Government Grant or Loan

This is considered as an often-overlooked way to get startup funding. Many of the business owners are not aware that government offers convenient loans or full-on-grants for the aspiring entrepreneurs in the country. For example, the Govt. of India has launched various innovative programs to provide financial support to the startups and SMEs. You must have heard about Startup India scheme, whose main aim is to provide grants and loans as a financial support to the new businesses. You can seek for these initiatives to know more about how to get funding or investment for your startup.


This is true that if you really want to grow your startup at a fast pace, you will probably need some outside sources of business capital.  For taking the advantages of various market opportunities, you will need some funding backup for your new business. Follow the above written ways to get funding for your startup hassle free.

Read here for check list for Startup

Previous Post
Next Post


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.