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How can I raise Funds for my New startup?
Anyone can help me with funding strategies for my new startup?
It’s been an year since I started it. Until now, I have found ways to fund my startup with resources without investing money into it but I guess now I need some advice or suggestions over raising monetary funds for it.
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9 Replies
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Hi @Ishaan !
It becomes necessary for any growing startup to get funding after a certain period of time. It helps in increasing your visibility and attracts the attention of the market. It also adds value to your business goodwill, as well as to future investors. I suggest these three sources of raising funds for your startup:
1) Capital Retention – Let your startup pay for its growth. Like you said, you already have included some resources to your startup.
2) Join Incubators and accelerators – The best way to get an idea of your business requirements and financial needs. The best-known accelerators are YCombinator and Techstars.
3) Angel Investors – There are many angel investors waiting to push in their money in growing startups. You can look around your family and friends for an Angel investor and pitch your business idea to him/her.
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Sure @Abhishek !????
Starting a business is easy. Raising funds for it is difficult. So, when I started with my idea I was focused on gathering resources which were free. It’s very important to stay true to the core purpose. I focused on building my team first, then my team worked on expanding the social media presence by organic methods. I utilize my available tools where ever I can, and I always keep an eye on my competitors. So, these were some of the things which don’t require money or can require an affordable amount but really helps you in growing.
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Hey @Ishaan !
When it comes to raising funds for your startup, especially when your startup has just started earning revenues, I prefer crowdfunding and bootstrapping as effective fundraising methods.
Some of the popular crowdfunding sites in India are Indiegogo, Wishberry, Ketto, and Fundlined. You can give it a try!
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Hi @Ishaan , It seems you are taking your business a step forward. Refer this article by Neil Patel to gain helpful insights on your business plan and fund raising strategy.
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Does anyone has any idea or understanding about ‘Convertible notes’?
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Convertible Notes are currently in trend @Aryan , and I guess that’s why you want to know about it.
So, a convertible note is a short-term debt that converts into equity. In the context of seed financing, the debt automatically converts into shares of preferred stock upon closing a Series A round of funding.
In other words, investors loan money to a startup as its first round of funding. Rather than get their money back with interest, the investors receive shares of preferred stock as part of the startup’s initial preferred stock financing, based on the note’s terms. Also, this is one of the reasons why this is trending among startups.
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Yaa, you are right! I asked because its trending. But is it the right way for funding?
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Yes, of course! The startups and investors use convertible notes because it provides speed, simplicity, and requires minimal cost. Indeed, a startup could close a convertible note-around in a day or two by merely issuing a 2-3 page promissory note, which could cost a little in legal fees.
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