Best ways to raise capital for your startup

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A lot of people have big dreams about launching their own startup but not all of them come forward for the same. Do you know why? Well there are  two main reasons for the same. The first one is the fear of taking risks and the second one is lack of capital. In addition to banks and third party lending companies like SummitFR, there are several ways that you can raise capital for your startup. Here we go.

  1. Angel investors

Angel investors are people with surplus amount of cash interested in startups. These people can easily invest in your startup if they find your business interesting and money making. This is usually done during the beginning phase of startups. You can use online platforms like Gust to find them or choose local networking to find investors related to your field. But angel investors have one drawback that they invest less than venture capitalists. They are more seen in real estate investments.

  1. Advance from a strategic partner or customer

This is one of the best ways to raise capital for your startup. If a potential customer or partner find your startup reliable then they might be willing to give you an advance for completing your development process.

  1. Crowdfunding

Crowdfunding has become one of the most popular ways these days to raise funds for startups Here fund is raised by raising small amounts of money from huge number of people who are interested in your startup concepts through online platforms. Crowdfunding is also one of the best ways to market your startup.

  1. Getting help from family and friends

Most people think that when it comes to startup they have to invest individually. But you should realise that all start-ups gives a feeling of risks and hence getting financial support from your family and friends will help you to calm down your financial tension. Also if you can’t make your family invest in your start-up don’t you think it would the same for customers as well? This is in fact the primary source of non-personal funds for very early-stage startups.

  1. Start up incubator or accelerator

These kind of incubators are often connected with community development organisations or major universities. They can provide you free office facilities and  consulting. Also many of them offers seed funding. Many of these incubators and accelerators provide management training and expertise as well to startups.

  1. By winning contests

Today there are large number of contests coming forward with the intention of helping entrepreneurs to raise fund. These contests have tremendous potential to help startups. In such contests you have to build a product or prepare a successful business plan. Make sure your product and plan standout in the competition to grab the prize.

  1. Credit cards

You can rely on credit cards to get instant support for your financial needs. If you don’t use your credit card much for your personal expenses then they can help you out while launching your startup. However the interest rates can build up very quickly on credit cards and hence this shouldn’t be considered as a permanent solution.