different sources and ways to fund your business and startups

1. FUNDING YOUR BUSINESS

2. Funding Your Business(different ways to
fund your business idea)
There are three ways to raise finance for your new
venture.
And we can say Three F’s
1)Family
2)Friends
3)Founders – financing your venture yourself

3. Raising Capital for New Venture
1) Family and Friends: Good Option
- They may give money for free.
- Most likely they will let you borrow the money.
( kept in mind )
- Money could drive a personal wedge among
friends and family and may affect relationship.
2) Founders: Raise Funds
- Founders first use own finances, either the entire
or some percentage.
- Borrow money from bank.
- Secured Borrowings ( against property, assets, and
machinery)
- Unsecured Borrowings ( loan based on creditworthiness)
- Use for small or medium term credit.(Credit Card of a company)
- Sell Equity (selling shares to external investors to raise funds).

4. Other Financial Support
1) Government Funded Schemes ( start up India)
2) Bank Finance Schemes
3) Business Angles: They are wealthy individuals, who
invest there own money through buying shares in business
--- Business Angels provide 3 key components:
Experience
Skills
Contact
4) Venture Capitalist: They are much like that business
angels.
But they deal with large sums of money. They want
minimum of 20% of stake in your company.

5.  Crowd Funding: It is also known as kickstarting. Crowd Funding is
collection of people, either individual, clubs and organisations,
usually over the internet, who each invest small amount of
money, which can equal to large share for a company.

6. THANK YOU