6 ways to raise funds for startups

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Introduction

• Do you have any innovative ideas?
• Do you have any desire to set up your own
  business?
• And do you have a full-proof business plan?
• If your answers to the questions mentioned above
  are optimistic. And you are affirmed to kick off
  your startup, then my friend, you have chosen a
  wise time. Because the glory of the startup is at
  its peak in India.
• But there is a displeasing truth behind this rosy
  picture of startups. And The truth is that 90 of
  Indian startups shut down within the first five
  years of their establishment.

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• The lack of funds is one of the main reasons
  behind the failure of startups.
• Finance is an essential component for the
  efficient operation of the business. If you dont
  have sufficient funds with you, then you have to
  take help from outside. For example, you can get
  financial support for your startups through
  Project Funding Services in Ahmedabad. So,
  lets learn about more ways to raise funds for
  startups.

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How to raise funds for startups?

• 1. Self-finance
• 2. Angel Investors
• 3. Crowdfunding
• 4. Venture Capital
• 5. Raise funds under Government schemes
• 6. Avail loan from Microfinance
  Institutions(MFIs) or Non-Banking Financial
  Companies(NBFCs)Conclusion

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1. Self-finance

• Using your own money to finance your business is
  called self-finance. Investing your money in your
  business is the best option for a naive
  entrepreneur.
• You can even use the money you got from your
  friends, family, or as a personal loan for
  self-financing. Self-finance will help your
  business to gain reliability and stability. It
  will also increase the chances of getting more
  funds from banks, venture capitalists, and
  government entities.

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2. Angel Investors

• Angel investors are individuals with surplus
  money. They are willing to invest their surplus
  funds in emerging startups. In return for their
  investment, they demand an equity stake in the
  business. Angel investors sometimes work in
  groups and collectively study and invest in the
  business proposal.
• Angel investors religiously believe in the
  principle of high-risk, high returns. They only
  wish to invest in startups with potentially high
  growth rates. They also provide expert mentoring
  to ensure the success of the startups.

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3. Crowdfunding

• Crowdfunding includes more than one investor. It
  is a modern concept to raise funds for startups
  through social media platforms. Here investors
  dont know you, but they have faith in your
  business plan and believe that it will certainly
  be successful.
• So, to get crowdfunding, you need to have a
  solid, innovative business plan to ensure your
  investors a profitable return in the future.
  Kickstarter, Ketto, Milaap, Wishberry, and
  GoFundMe are India's famous crowdfunding
  platforms.

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4. Venture Capital

• Some of the best ideas to raise funds for your
  startup is venture capital. To get capital you
  need to visit the venture capital firm with your
  business proposal. Venture capital is a fund
  managed by professionals. And professionals like
  to invest their funds in a startup, which will
  achieve a high growth rate. A venture capital
  firm will demand equity in your business to
  ensure a high rate of returns on its investment.

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5. Raise funds under Government schemes

• The government of India and the State Government
  has initiated many finance schemes to promote and
  support the startups. MUDRA loan scheme, Startup
  India, Credit Guarantee Fund Trust for Micro and
  Small Industries, Atal Innovation Mission, and
  Make in India are a few examples of Government
  startup support schemes. To get benefits from
  these loan schemes, you have to submit your
  business plan to get approval from the grant
  committee.

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5. Avail loan from Microfinance Institutions
(MFIs) or Non-Banking Financial Companies(NBFCs)

• Taking a loan from Microfinance Institutions or
  Non-Banking finance companies is an excellent
  option for people who have never taken a loan
  before and dont have a credit history of
  maintaining a credit score. MFIs and NBFCs are
  set to provide funds to small and micro startups.
  MFIs and NBFCs grant business loans to startups
  that didnt get a loan from public/private banks
  due to their poor credit history.

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Conclusion

• We sincerely hope that the information we have
  provided you in this blog will be a great help
  for you to raise funds for your startups. And If
  you are naive in entrepreneurship and looking for
  a splendid option to get finance, then AGIL
  Finance is the best loan agency in ahmedabad. At
  AGIL, we provide the Best Loan Services in
  Ahmedabad. We aim to provide loan services with
  minimum documentation, maximum flexibility, and
  fast disbursal. Contact us at info1_at_agil.co.in to
  get more details about our services.

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• For any financial assistance, connect our experts

customerservice_at_agil.co.in
https//agil.co.in/
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