4 Funding Options To Raise Startup Capital For Your Business



4 Funding Options To Raise Startup Capital For Your Business.
1. Bootstrapping
Bootstrapping is an effective way of startup financing especially when you are just starting your business. First-time entrepreneurs often have trouble getting funding without first showing some traction and a plan for potential success. You can invest from your own savings or can get your family and friends to contribute.
2. Crowdfunding
Crowdfunding is one of the newer ways of funding a startup that has been gaining lot of popularity lately. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.
Some of the popular crowdfunding sites are Kickstarter, RocketHub and GoFundMe.
3. Venture Capital
Venture capitals are professionally managed funds who invest in companies that have huge potential. They usually invest in a business against equity and exit when there is an IPO or an acquisition.
4. Angel Investment
Angel investors are individuals with surplus cash and a keen interest to invest in upcoming startups. They can also offer mentoring or advice alongside capital. They prefer to take more risks in investment for higher returns.
So these are the 4 Funding Options To Raise Startup Capital For Your Business.
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