From the time a business starts its journey, it always needs a constant supply of money. Money is very important to keep everything running. People are always searching for the best funding support. There are several funding sources available today that are helping businesses develop and grow. If you are also looking for startup funding sources, then I can help you out. In this article, I will tell the top 10 sources to look for funding your startup in 2020.
Top 10 Sources To Look For Funding Your Startup
A bank is the most sought place for startup funding. These financial organizations can provide loans that act as financial support for your startup. Most of the time, you have to clarify your business plan in order to get money from banks. So, explain your business plan to banks in detail.
Some investors are known as accelerators because they speed up the growth of a company with their funding support. Accelerators provide guidance, business mentorship, legal and management advice to develop an existing business network. They can provide you with their resources for a period of six months.
3. Angel Investors
An individual or a group of individuals that provide funds in early startup stages are angel investors. They take some ownership of your company in exchange for offering money. Some angel investors start a group when they try to provide funds to a lucrative business.
Incubators are also a good financial source for startup funding. They are known to provide their financial resources for a period of two years. Most of the time, incubators come free of cost. Thus, they seem to be the best option when you are starting your business without money.
5. Venture Capitalists or VCs
Venture Capitalists and Angel Investors are very much related to each other. People who have just begun their business can seek financial assistance from them. Earlier, VCs have supported many companies like Facebook, Apple and many others. VCs are known to provide seed funds. Several companies provide seed funding for startups in India.
6. Grant Schemes From Government
There exist several funding programs in every country for startups. Most of the time, grants are available for non-profits organizations. If your startup is a non-profitable one, then you can easily apply for government grant funds.
7. Self Funding Or Bootstrapping
Sometimes, it gets difficult to receive funds for your business. You can invest your saved funds in your own business. This technique is something people love the most. It can work as the best option for your short term financial support.
Crowdfunding is a process where you promise to offer a product or service in exchange for funds. There are plenty of crowdfunding platforms available on the internet. It is a very reliable and quick way to get funds for your startup because the crowd will not ask for money in return.
9. Family And Friends
Yes, your friends and family members can help you out with the funds. They are always close to us, so you can ask them for financial support. Also, you don’t need to explain your business plan very clearly to them.
10. Pitching Competitions
Lastly, pitching competitions can work as a financial source for your startup. Here, all the startups that need money compete with each other within a city or any other region. This technique is also used when a startup wants to get feedback on their products or services. Thus, it is a competitive way to ask for money.
In this article, we have learned the top 10 sources to look for funding your startup this year. These sources of funding have been supporting almost all the businesses from the beginning of their journey. Every stage of a startup requires funding and such financial sources are very helpful at that time. Some of these sources are easy to access while you have to compete for others, particularly in pitching competition. The list I have provided for funding sources can help you out with your startup financial needs.