Entrackr- Startup Funding India

1. Major Challenges of Startup Funding in India Every startup is built on an Idea, which either took the shape of innovative products and services. In the early stages, the majority of these startups looks for funding capital to transform their vision into reality. Funding plays a key role in the journey of startups. According to Startup Funding India, there are great examples of startups which attracted billions of dollars in funding, while others still remained a dream. Not every idea attracts venture capital for funding. As mentioned in Business News, new entrepreneurs face various challenges while seeking Funds in India. Some of them are listed below: Scalable Business Model: A scalable business model is the backbone of any startup, which investors put a keen watch on. The measurability of the business model should include the profit potential with low expenditures in due course of time. According to Startup Funding India, If you are planning an expansion of your business and looking for loans or series of Venture Capital rounds, a scalable business model will keep you ahead in the track. As per the Business News, A scalable business model or idea usually has a higher margin of profit, with low infrastructural costs and marketing costs. The best way to minimize expenditures is to outsource the non-strategic aspect of your business plan. Determine how much funding you require: If you do not have a proper well-written business plan, it is almost impossible to determine how you are going to spend your funds. According to Startup Funding India, It is essential to include a financial forecast in your business plan. A realistic financial forecast will determine the expected cost the investment will cover and the generation of revenue over a stipulated period of time. Business News, however, covers that, Investors expect to spend the funds to grow your business to the next level. No investor will like to see funds being wasted on un-necessary expenditure like pieces of furniture, interior designs, fancy items, etc. Therefore it is essential to be specific and concrete on the fundings you are seeking and your business should showcase consistent achievements. The Right Funding Option: There are many options available for Startup Funding in India. To increase the better chances of funding, there are multiple alternatives available today. According to Business News, some of the options are as follows: 1. Bootstrapping: Also known as “ self-funding”. This involves borrowing of funds from friends and family. Bootstrapping is an attractive funding option as it is flexible and available quickly.

2. 2. Bank Loans: Various Government-subsidized bank loans are available for Start Funding in India which are also considered as the most reliable funding option. 3. Angel Investment: According to Business News, Angel investment is considered as a flexible investment option. Investors tend to invest a portion of money in return to equity in the startup. 4. Venture Capitalist: They are professional investors who possess in-depth knowledge of the investment market and business scenario. Venture Capitalists invests major investment in upwards of 20 Lakhs.