Capital is the lifeline of a business. A good flow of capital ensures better business operations and allows it to expand and grow. However, after the budding stage, a business requires capital for funding strategic collaboration, research and development, talent acquisitions and territorial expansion. Given below are some of the ways through which businesses can avail start-up funding in India.
The start-up companies and the small businesses need working capital for business activities. Start-up funds are the investments required for the growth of start-ups and small businesses in India. As these businesses do not have access to the stock market, they cannot raise money from investors. To meet funding requirements they must either borrow or can opt for other modes of funding like angel funds, venture capital, and government schemes. One of the crucial aspects is that these businesses must provide innovative business products and must have a long-term business perspective in order to secure funds.
In the past few years, start-ups in India have massively changed the private sector which was dominated by large corporations. The increase in the number of start-ups has led to the budding of various funding options. The primary task of these ventures is to offer risk capital to small and medium enterprises and start-ups.
Organizing funds for growth and business expansion was a herculean task. However, with the rise in various funding options, the new businesses can now focus on innovation, technological aspects and sustainable growth.
See Also: What is Startup India Scheme?
India provides a base for the growth of start-ups. Previously these businesses had no other method of availing funds, other than through loans. But with the rise in the number of start-ups, new funding options have emerged. Listed below are some of the ways businesses can avail funds:
The funding process of start-ups involves several stages. They are as follows:
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