Raise funds for start-ups is the top priority for starting any business. To start any business, capital is the most major thing that we need, as most of the companies fails due to lack of capital. Therefore entrepreneurs should take care how to raise funds for start-ups at every stage of business development.

1. How to raise funds for start-ups?
Summary
Financing a start- up is the top priority for entrepreneurs, as most companies fail due to a lack of
adequate capital. Therefore, entrepreneurs should take care of how to raise funds for a start- up at
every stage of business development. Get here 7 effective ways of how to raise funds for start-ups.
In the context of growing business development, youths today are inclining towards starting their
own business. Start-ups are their best choice. The objective is to develop entrepreneurial skills
among potential candidates. This helps a person’s entrepreneurial skills to be inculcated, developed
and polished to help them set up and run their business successfully.
Apart from this, start-ups help generating employment and employees, and in turn contribute to a
country’s economical development. Many countries, at present, encourage their young generation
to initiate start-ups ideas by launching various schemes and funding options.

3. Financing a start-up is the topmost priority for any entrepreneurs because most of the businesses fail due to a lack of proper capital
investments. Therefore, at every stage of business development, entrepreneurs should take care of how to finance a start-up.
1.Self-funding:
• Self-funding or bootstrapping is one effective and the easiest way of funding own business. You can contribute from your own savings or
persuade family and friends to make investment. This fund will be easy to increase due to fewer formalities / compliance plus lower
incremental costs.
2.Crowd-funding:
As one of the newer approaches, crowd-funding has become very popular to finance a start- up. It is like receiving a loan, pre-order,
contribution or investment from more than one person simultaneously. The best thing about crowd financing is that it also generates interest
and thus, helps to market the product besides financing. Venture capital investments could also be attracted through crowd-funding if a
company has a particularly successful campaign.
3.Angel-Investment:
Angel investors are people having a cash surplus and a strong interest in investing in future start- ups. They also work in network groups to
examine the proposals collectively before they invest. They can also offer guidance or advice next to capital.

4. 4.Venture Capital:
Venture capital is professional funds, which are invested in companies with enormous potential. They usually invest in an equity company and
leave when an IPO or an acquisition. This type of capital provides expertise, mentoring and helps to assess where the organization is heading
towards, examining the business from the point of view of sustainability and scalability.
5.Business Incubators & Accelerators:
Companies at an early stage can take help from Incubator and Accelerator funding programs. These programs support hundreds of start- up
companies each year. Incubators provide shelter tools and training and a network for a company, while accelerators help to make a giant leap.
These programmes usually run for 4- 8 months and require the company owners to be committed to time. They can also connect well with
mentors, investors and other start- ups with this platform.
6.Bank Loans:
The Bank provides two types of financing- working capital loan and funding. Working capital loan is the loan required for a complete cycle of
revenue generation operations, and the limit is usually determined by mortgage holdings and debtors. The Bank’s funding would include the
common process of sharing business plan and valuation details besides the proposed project.

5. 7.Government Funding:
Government funding is also very helpful for SMEs. In the union budget
of 2014- 15, the Government of India has launched 10,000 Crore start-
up funds to expand India’s start- up ecosystem. The Government has
also launched the “Bank of Ideas and Innovations” programme to boost
innovative businesses. Government- supported “Pradhan Mantri Micro
Units Development and Refinancing Agency Limited (MUDRA)” begins
with an initial amount of Rs. 20,000 crore to cover around 10 lakhs
small and medium- sized enterprises.

6. Key Points
At every stage of business development, entrepreneurs should take care of how to finance their start-up.
1.Self-funding:
Through self-funding, business owners can contribute from their own savings or persuade family and friends to make investment.
2.Crowd funding:
It is like receiving a loan, pre-order, contribution or investment from more than one person simultaneously
3.Angel Investing:
• This is another way, where angel investors i.e. people having a cash surplus and a strong interest for investing, invest in future start- ups
after a round of assessment.
4.Venture Capital:
Venture capital is professional funds, which are invested in companies with enormous potential.
5.Government funding:
There are many central and state government funding options that help start-up owners to raise their funds.
Published by Brainware University