Simple ways to gather funds for our startups

As an entrepreneur, getting funds for setting up a start-up is not at all an easy task in past decade. Now, Government and lot of private sectors help in gathering funds for start-ups.

Having a Great idea and passion for it shows you some ways to gathering funds for your start-up.

Ways to gather funds for our Start-ups:

  • Prepare yourself to invest some portion of the money

Without initial motivation and funds, no one can trust you and your business plan. So initially we want to invest some money. If you are capable to invest total funds as a self-funding, don’t want to ask anyone for funding.

If not, for this some ways are there. We spend Personal Savings and credit cards money as initial funds. Another way to collect funds in self-funding is Sell Personal Assets, Borrow against Your Home, take Bank loans and some money from Retirement amount in advance.

 Related Article: Government schemes to provide funding facilities for our startups

  • Take help from friends and family

 Rather than bank officials, your friends and family members are well known about you and your credit scores. Moreover, they are not pressurized to repay the amount and higher interest rates. In case of family members, you may escape from interest somehow.

Borrowing from a personal friend or family member is a very popular option from past decades. And these come with its once own set of risks.


  • Take loans from banks or venture capitals

 This is a somehow risky task but you get huge funds if your business idea clicks. In personal bank loans, the rate of interest is low as compared to credit cards.The rate of interest range is in between 6 to 13% which depends upon your credit history.

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In this, you want to submit surety or collateral to secure the loan. If your credit score is not high, you want to find one co-signer (who is to be responsible for the debt).

Venture capitals invest directly in our business to make partnerships with us. For this, they take some equity stake in our business or start-up. Through Initial Public Offering (IPO) they sold their stake to a larger existing business firm to encashing out their equity.

Related Article: Things to remember while launching a startup or business

  • Angel Investors

If one may not get enough cash from the bank or your own assets, you can check for angel investors. An angel investor has been successful in a particular industry and is looking for new opportunities within that same industry. This means some wealthy personalities like TATA, Birla etc…

They are likely to invest in start-ups often they are taking some equity stakes in our new business. Not only investments they provide guidance and contacts based on their experience to boost up our business.

Based on your well business plan and way of presenting it on seminars will give you this type of angel investors. Other angels have joined in networks, making it easier for potential start-ups.

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