What are the methods which start-ups can use to raise money? A recent research suggests that over 94% of new businesses fail in the early stages. One of the key reasons is the lack of the ability to raise money. Let us read on what are the methods which start-ups can use to raise money.
1. Your own money
This is popularly called as “bootstrapping” You can invest your money and if required borrow from friends and family Easy to raise Less formalities and documentation Lesser interest cost Full control on finances and operating expenses Shows that you are serious and committed Investors view this positively
2. Crowd funding
It is similar to taking a loan, pre-order, contribution or investments from more than one person at the same time. You have to upload a detailed business plan on the crowd funding platform/website Consumers who are convinced on your business plan may either make online pledges, investments, donation or pre-buying your product/service