Startup funding has always been a pain in the neck for all entrepreneurs. The reason why most startups fail to raise funding is that they don't know ...

Startup funding has always been a pain in the neck for all entrepreneurs. After all, it is not easy to raise funding, you have to pitch a lot of people, convince them into thinking that your startup would succeed and even beg in some cases. Because no one will ever put their money in your startup if they don’t feel that it had a scope of generating profits.

But in this post I would be discussing about the ‘100% Guaranteed way of raising funding for your startup’ which you can use for your startup as well and it would surely wok for you as well.

What is Startup Funding?

What is Startup Funding

Before we go any further, it is important to first understand what ‘Startup Funding’ actually means. By definition, Startup funding refers to the capital raised or secured by a startup either through bootstrapping, angel investors, venture capitalists or from any other source.

This definition highlights certain facts. First, the funding is the capital of the startup. This means that startup funding is forms the long term capital base of the company. The money raised is used for expansion and business operations and cannot be used by the entrepreneur as personal wealth.

Second, it is raised through some source, generally from outside. Requirements of funds can be met even by bootstrapping or self financing by the entrepreneur. However, usually the funds required are so large that it can only be met by venture capitalists and angel investments.

If yo want to know about what actually is a startup, read our post on ‘What is a Startup? Meaning, Features, Difference

Sources of Startup Funding

Sources of Startup Funding

There are multiple funding options today. You may raise capital from any of the sources as per your requirement and as per their willingness to invest in your startup. Some of the most popular sources of Funding include Incubators and accelerators, Venture capitals, Angel investors,crowdfunding, IPO, Bootstrapping and even certain schemes can be availed to get the required capital.

Following are the sources of startup Funding:

1. Bootstrapping

Let’s begin with the most basic one. Bootstrapping is the most commonly and often the first source of financing for any startup.

Bootstrapping means using the personal savings and assets of the entrepreneur to cover all the capital needs of the startup. This is where most startups start from. The entrepreneur puts all his savings and resources in the startup to get it started in the first place, because you can’t expect someone to be waiting just for financing you.

This is great choice for the initial phase as it shows the dedication and commitment of the entrepreneur towards his idea and his startup. Also once you have all your savings locked in the startup you can’t really back out unless you are broke. This ensures that your startup is not just another random idea or hobby but a very serious business.

2. Crowd Funding

Crow Funding means raising money from retail investors who believe in your idea. It is basically pitching hundreds of people together may be over the internet to invest and fund your startup because it could be the next big thing.

You have to make people believe the worth of your startup and how it is better then any other startup or company. It could be used to raise a very large sum without any difficulty as no single person or institution is supposed to invest. Instaed numerous people with small amounts contribute to raise a considerable amount of capital for the company.

However, it is not that easy to raise money through crowd funding and perhaps is the most difficult way because convincing so many people can be troublesome. Also, it would make your startup less liberal because you are accountable to a lot of people and you can’t really take risky decisions.

3. Angel Investors

Angel investors are people whose whole and sole work is to invest and fund in startups. These are people with surplus capital finding potential startups that could give them multi-bagger results in the future.

Apart from this, angel investors also provide mentoring to the entrepreneur of the startup. They help them to build networks, get thing soughted, take decisions for the betterment of the startup, in general, they help to build and grow the startup.

Getting angel investment is however a bit difficult too due to the capital constraint that angel investors themselves have. They usually only have money to finance small startups and only a limited number of startups that have huge potential.

4. Venture Capital

Venture capital, by definition, is a form of private equity financing which is owned by venture capitalist and venture capital funds to finance startups and emerging companies.

Venture capital is perhaps the most popular form of raising funds in the startup world. You have to pitch your idea to the venture capitalists and convince them about how investment in your startup could be much more worth than any other.

Also, it is not that tough to get a venture capital funding if your idea is really good. Venture capitals sometimes themselves approach the startup if they think that it has the potential. They also offer mentorship and other technical assistance required to make them business successful.

5. Incubators and Accelerators

Incubators and accelerators are organisation that help startups to nurture and grow. They help the startup in all possible ways be it legal assistance or financial assistance or technical assistance.

While Incubators nurture a startup as a mother, accelerators help the startup to take a big leap forward in their progress. They offer an environment of collaboration and mentorship required for the growth and success of business. Incubator and accelerator support is also easily available to the startups.

Government schemes for Startup

The government greatly supports startups in India. To give a boost to new startups a lot of schemes have been announced by the government. This could be utilized for the growth of your startup.

Some of the Government Schemes available for startups in India are :

1. The Venture Capital Assistance Scheme

Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.Benefits

  • Help in assisting  agripreneurs to make investments in setting up agribusiness projects through financial participation
  • Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).

2. Stand-Up India for Financing SC/ST and/or Women Entrepreneurs

Stand Up India Scheme facilitate bank loans between 10 lakh and 1 crore to atleast one scheduled caste (SC) or Scehduled Tribe, borrower and atleast one women per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur. 

3. Multiplier Grants Scheme

Department of Electronics and Information Technology (DeitY) is implementing Multiplier Grants Scheme (MGS). MGS aims to encourage collaborative R&D between industry and academics/ R&D institutions for development of products and packages. Under the scheme, if industry supports R&D for development of products that can be commercialized at institution level, then government will also provide financial support that is up to twice the amount provided by industry. The proposals for getting financial support under the scheme are to be submitted jointly by the industry and institutions.

The Scheme is extended upto 31st March 2020 with a total outlay of Rs. 36 Crores and DeitY contribution of Rs. 24 Crore. The Technology Development Council (TDC) budget head will be used for implementation of this scheme. Based on this pilot implementation and feedback, the scheme would be reviewed by Working Group.

4. ExtraMural Research or Core Research Grant

Extramural Research (EMR) funding scheme of SERB to academic institution, research laboratories and other R&D organizations to carry out basic research in all frontier areas of Science and Engineering is in limelight for more than four decades since from the inception of SERC. This scheme encourages emerging and eminent scientist in field of science and engineering for individual centric competitive mode of research funding. Since the scheme provides core research support to the active researchers, the existing name Extramural Research (EMR) has been renamed as Core Research Grant (CRG).

To know about all the schemes offered by the GOI visit:

How can you Secure Funding for your Startup?

How can you secure funding for your startup

You might have understood till now that getting funding for your startup is not going to be an easy task. You have to face a lot of rejections. You might even start doubting about the usefulness of your startup. But don’t worry, I am going to tell you some tips that will surely help you or even guarantee you a funding.

First things first: Get a good plan in place for your startup. You can’t even think of beginning without your startup. Plan is the first thing which any investors will look at before they give a nod for investment. So be sure that if you are planning to start your own startup you have a good plan, a plan which is executable and even profitable. To know more about how you can start your own startups and how you can prepare a master plan for your startup, read our post on ‘How to start your own startup? The Startup Handbook

Once you are done with this, use your network to get in touch with potential investors. Networking is crucial for an entrepreneur and you must have a great network. If you still doesn’t know about entrepreneurship and what it takes then read our post on ‘How to become an Entrepreneur: The A to Z Guide‘. You must leverage your network to get appointments with interested people. Start pitching your idea, you will get rejections but suggestions as well. This will help you to improve.
This brings us to the next step, convincing the potential investors. Once you get an appointment with an investor you must use it to the fullest. Use your charisma to convince them how you will be building the next big thing and why you have much more chances of succeeding then anyone else. Show them your dedication, your commitment.

Repeat this unless you succeed. I am saying it will be very easy but it is possible if you try continuously. Go all out, and try until you succeed. This would ensure that you ultimately get funding as you wish.


Funding is perhaps the most difficult segment of starting up your startup. But it is equally important to succeed at it if you want your startup to sustain and grow. Also there are numerous sources of raising funding but you need to choose the one which fits best to your needs. Use cost benefit analysis to determine what you expect from your funding and what you would have to pay for it and accordingly take your decision.

The 100% Guaranteed way of Raising Funding for your Startup

Prashant Tiwari

Hi Peeps!! I am Prashant, a blogger by passion and an entrepreneurial enthusiast. I have written more than hundreds of articles and on a variety of issues and have fallen in love with helping people by means of meaningful blogging and articles. My aim is to add value to all my reader's life. If you feel that this post has benefitted you in any way then do share it with others to help them. Happy Reading!!

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