How new Startups get Investors and Funding?
                     How new Startups 
get Investors and 
Funding?
Detailed business plan
Creating a detailed business plan increases 
the chance of securing investment for your 
startup. Companies with a good business plan 
also have good growth rates.
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Visit a local bank or financer
You can visit a local bank or financing 
company which offer attractive business loans 
and funds for startups.
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Help from friends and family
You can also seek help from your friends and 
family as you can ask them for a loan without 
having to pay interest, but you need to be 
careful with it.
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Venture capitalists
Venture capitalists can provide funds for your 
company in the early stage in return for equity 
shares. Venture capitalists are often drawn to 
startups in the IT sector.
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Crowdfunder
You can take the help of professional 
crowdfunding websites online, which can land 
you amongst a pool of professional investors, 
to meet your capital demands.
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Personal savings
Though not for everyone, you can choose your 
personal savings to fund up your startup 
business, the risks are low since if the 
business doesn’t work, you wouldn’t have to 
pay back loans or become indebted.
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Strategic partner
You can choose a strategic, trustworthy 
business partner for your startup, who relates 
to your ideas and can also invest from his 
savings.
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Minimize initial costs
You can also go for minimizing initial costs like 
using a shared office space instead of your 
own office, reduce  costs, using cost-effective 
materials and much more. This will reduce 
burden of securing big amounts.
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Angel investor
Unlike venture capitalists, angel investors ask 
for lesser equity shares and offer debt 
conversion options in return for investment.
inc42.com