Today we will be talking about fund raising for start-ups, what is the meaning of fund raising, why fund raising is important for business, what are the various methods to raise the funds for start-ups?
So, fund raising is the process to collect and acquire the funds from those who are voluntarily ready to fund the startup or a particular unit for which the particular process has to be undertaken. Parties from which a startup can raise funds are government agencies, charitable foundations, or may be some business units as well.
There are some common methods of fund raising as well which includes; capital and comprehensive campaigns, online fundraising, accountable fundraising etc.
But methods of fund raising for startup is different than those which are mentioned above and which includes; Bootstrapping your startup business, which is a method where your friends, you and your family can invest and this is the most suitable one for the ones who have just started their startup. Another one can be crowd funding which means when you take a loan or some amount from more than one person at the same time so this is also one of the techniques. There are some other methods as well which includes angel investment and venture capital, etc.
This is very important to have diversified sources to raise the funds because fund raising activities are the ones which can determine the survival of your business and its growth. As this is the only one which help to support all the business activities, and poor performance in business can drain all the business growth and the funds as well. So it is very important to make use of those funds very effectively and efficiently.
If you liked the story and want to appreciate us you can clap as much as you can. Appreciate our work by your constructive comment and also you can connect to us on….
Website : https://www.societyofai.in/