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Top Fundraising Ideas For Entrepreneurs

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Fundraising Ideas

Fundraising Ideas For Entrepreneurs

As fancy as it may sound to be known as an entrepreneur, fundraising is the total opposite of fancy that every entrepreneur has to undergo before getting to fancy. This is a time when lots of kids growing up want to be an “entrepreneur” as against the engineers, doctors and lawyers which were the preferred professions. Fundraising is only going to get tougher with the increasing number of people aspiring to be entrepreneurs.

Here are some of the top ideas that will be helpful for entrepreneurs to fundraise.

Venture Capital

One of the most well known and straight forward ways of getting funds for a business is from Venture Capitalists popularly known as VC. There are many websites that connect you to Venture Capitalists. Investmentnetwork.in is one of many such sites.

Convertible Note

Venture Capital, although is one of the very well known ways of many businesses getting funded, it is not the easiest. If the door to Venture Capitalists are very hard for you to open, then you could try what is called as Convertible Note. It is a way through which your loaners become stockholders once your company gets rolling.

Crowdfunding

If you cannot find one person to fund One Thousand rupees then find a thousand people to fund One Rupee each! That is the concept of crowdfunding. Sites such as GoFundMe have made crowdfunding an effective reality. If your idea or campaign is promising enough, finding investors among the crowd has become a reality. It also gives a lot more of them out there to be a part of something special.

Business Loan

Banks are always a good option for raising funds. It does come with certain conditions that may not be suitable for all types of businesses. For example, companies that have a tight cash flow would find bank loans suffocating at the early stages.

Collateral Loan

If you own a lot of gold or a property with the required titles then finding loans from institutions be it private or government is not a difficult task with this collateral. Although it comes with a certain risk, there is no business without an element of risk.

Angel Investors

Yes, there are people called as Angel Investors. It could be your family, friends or a random rich stranger you would have met at an event. Always be prepared to pitch your business idea to anyone who shows interest. You never know who would like your idea mainly owing to the various perspectives every individual would bring to the table. It just needs that one person who looks at your business idea just the same way that you do.

Pre-orders

If your company deals with physical products, one of the ways to raise funds would be through pre-orders. If your product generates enough interest among the viewers, there are a lot of them who would pay for the product to be made and then buy it. An excellent promotional video with explainer is one of the ways to let people know about your product.

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10 COMMENTS

  1. Fundraising is the toughest part of entrepreneurship. When you start a business, you might have the right kind of idea but not the capital. In fact, with growing number people aspiring to become entrepreneurs the fundraising challenge increases. Hence, before venturing to a business, it is a good idea to have your fund raising factors in place.

  2. Fundraising is something very difficult to gather now a days. It is important to have the perfect idea to be in focus of the people, for the right reason. Due to increasing population, technology, new ideas and maybe even due to frauds it has become a challenge for entrepreneurs for gathering funds. Thus having a overview or idea of fundraising tactics and ways is important.

  3. The basic need for entrepreneurship is money. One can attain a good degree from a good college but rationally that is just not enough to earn money. It is necessary to arrange sources for money needed to establish a new business and it is a bit typical process even. The article vividly gives ideas to the reader for the sources that can be approached for fundraising.

  4. Most of us aspire to become entrepreneurs. Many of us stop putting efforts fearing of investments and raising enough funds to startup a business. This article is a source of guidance for all those who have an aspiration towards entrepreneurship. The author in simple words has explained clearly how a start up can raise funds for his new business easily and kick start his venture.

  5. Raising funds for a business is the most important and confusing factor. With so many options available in the market, choosing the best method is very difficult. Raising funds from Angel investors is as good option as they specialize in providing funds to start-ups. Crowd funding, peer-to-peer lending are safer ways as we take money from our friends, family and relatives, there is a sense of trust in this kind of lending. According to me, an entrepreneur must prepare a full-fledged business plan before selecting a method to raise funds.

  6. It is great to know all the options.
    But I’d take crowd funding over venture capitalists and loans any day of the week. Crowd funding just requires good will and a great idea. I think everyone dreams of an Angel Investor, but is that happened to everyone then we’d all be rich!
    I read another article on this website and I think crowdfunding is the way to go 🙂

  7. I read this article three times in order to be sure that I didn’t miss anything. I am really preoccupied with this matter because I do need to do some fundraising. Unfortunately I am not an entrepreneur so my first task would be to get in touch with one, except from “Angel Investors” – how cute to call them this way! One question: only very few types of business can get a bank loan – which should be their specific?

  8. “If you cannot find one person to fund One Thousand rupees then find a thousand people to fund One Rupee each”.Well, these line by the writer explain almost everything about fundraising.Great insight and clear view of fundraising as a tool of involving new entrepreneurs and investors.

  9. Easy to follow, this article wasn’t what I expected initially, but it was informative none the less. Additionally, I would like to know more about exactly what venture capitalists, the convertible note, and pre-orders are. A small mistype was in the pre-order section and I never did catch the youtube link.

  10. It is very impressive to know that there are many choices for an entrepreneur to choose his fund raising method, and there are a lot in the bunch. A detailed study through each of them will help the entrepreneur to understand the type of fund he is going to raise. The crowd funding epically attracted my notice. I am going to have a dig on it.

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