3 Funding Options to Raise Capital for Your Startup

Money is paramount when it comes to starting a business and keeping it afloat. According to research, over 90% of small businesses shut down after one year because they lack funding. It is exciting to start a business and watch it grow to what you imagine it to be.

However, it is essential to keep in mind that a company cannot run without money even if you are running it solo.

A sustainable business is a business with sustainable cash flow.

So, the question on every entrepreneur’s mind when starting a business is, “where do I get the money?

Below are three funding options to raise funds for your startup.

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1. Self Funding

Self-funding your business is what most experts advise and with good reason. If you have some savings or an asset that can give you the money that you need, then it is best to use it for your startup.

When it comes to self-funding; however, you will need expert financial advice on how to stretch out the money, you must achieve the most for your business.

It is not easy, but with the right plan, you will be successful.

Self-funding also has some benefits.

There are much fewer formalities, and it ensures that you are tied to your startup. Additionally, it can be hard to get investors when starting a business from scratch.


It is easier to convince investors when you show some financial commitment on your side as well.

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2. Fundraising

There are several ways that you can do this without hosting a fancy party.

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One of the modern methods of fundraising for your business is through crowdfunding. Several sites can help you do this.

All you need is a detailed description of your business together with the goals and objectives of the same.

Another way to crowdfund your business is through family and friends. One of the quicker ways to source for capital for your business is through MCA leads.

You can identify and approach merchant leads that are likely to fund your business. Merchant advance loans are quick and require minimal paperwork.

You can seek the help of an expert to assist you in lead generation for MCAs. If you have been turned down by the bank MCAs are an excellent way to go.

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3. Angel investors

An angel investor is an individual who has a net worth of over $1,000,000 or earns a minimum of $200,000 per annum.

To get an angel investor, you need to have a great business plan with accurate data, and an excellent pitch prepared.

Angel investor showcases are held around the country, among other events where you can meet and pitch to potential angels.

There are many more options available to get capital for your startup.

You can go to venture capitalists, incubators, or apply for a bank loan if you have a good credit score.

Do not lose hope when one method doesn’t work out for you. Instead, keep working and exploring methods until you hit your pot of gold.


Rahul Setia was born and raised in the Kaithal, Haryana. He worked at brands like Jabong, ProProfs etc. He was also in the List of Top 100 Social Media Influencer's 2019 by Status Brew. He lives in Delhi/NCR and is a Digital Gig & Founder of Websites i.e TechBlogCorner.com, ViralMasalla.com, DealorCoupons.com. Follow me on: LinkedIn, @rahulsetia007 and Facebook.

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