9 ways to fund your business idea in India

Friends & Family

Meme— tu jaanta nahi mera baap kaun hwi

If you've been uttering the same all your adult life, maybe it's time to let the world know who backs you, after all.

Financing your idea through a friends and family round is a legit idea. Many successful startups like …… have gone to friends and even family to get starter capital.

It's just like loaning money for something else, but this time, for something serious.

Ask your well-networked friends or that relative you've always seen flaunting his network or money. 

Read more: the specifics of a friends and family round in india. 

Bootstrapping

Seems like a fancy word. Right? 

But, this is the most viable forms of funding your business idea, especially if you're just beginning. 

Bootstrapping is the art of funding your startup using your own savings or available funds.

A stark contrast to the glitzy and glamourous fundraiser, bootstrapping has picked pace in the last 3-4 years once again. 

<Tweets in favor of bootstrapping>

A bootstrapped startup is one that uses the paucity of funds to its advantage. Instead of trying to impress investors, it spends time on bringing onboard customets and using the revenue to fund expansion plans.

Ironically, almost all our small businesses in India have been bootstrapped. Ask your parent on how they started the business. Chances are you'll get a unique take on bootstrapping.

Shark Tank

If you've not gone through this blog much, you'd be confused. But as I have been fascinated by the Shark Tank format (Not the Indian version much), I felt adding this way to the list.

But a few disclaimers first: Shark tank might be your shot to fame, but in 2022, they don't fund crude ideas. Better have some form of traction or prototype before pitching.

When shark tank originally started in 2008, the world was recovering from a recession and banks were not eager to lend loans for business ideas. Even venture capital wasn't an option.

So, ABC network brought together a panel of six who were ready to listen to an idea and fund it, if they found value.

Over the last 15 years, xxx bn have been raised on Shark Tank globally. Some shark tank products went on to become multi million businesses too. 

Seems surreal, right? But who knows, you might be in for some luck.

Excited? Here's what you need to know about going to Shark Tank. 

Crowdfunding

Cheekh cheekh ke sabko scheme bta de

Well, if you're thinking of creating a viral consumer product, and have some cool marketing angles, crowdfunding can work for you.

Crowdfunding is the process of getting money from hundreds of people who back your idea through money. In return, they expect early access to product, freebies, or something else.

Kickstarter, ssss ,ssss are some of the popular crowdfunding platforms. In India, xxx were able to secure a crowdfund of xxx for their idea and launch a successful business. 

If you have it in you to convince people, and aren't afraid to tell your scheme to everyone, plan a proper crowdfunding campaign.

Read more: how to succeed in your first crowdsourcing campaign. 

Venture Capital or Angel Funding

Well, the posterboy of this list, the ambition of many startup enthusiasts, and the goal of many wannabe Entrepreneurs. 

You don't need an introduction to this way in 2022. Nearly everyone is chasing VCs and angels with their ideas for the last two decades. More recently, news of VC fundings have entered mainstream media. 

A VC listens to your pitch, does his due diligence, and agrees to file a term sheet. You have to dilute your control and offer equity in lieu of the fund.

VC fundings is a great way if you're in tech business and are looking for network, connections, and mentorship from an established business tycoon or venture capital fund. 

Government schemes/ incubators

Gone are those days when government could only promise a stable employment.

In the last one decade, the Indian government has been really serious about promoting Entrepreneurs in the country.

https://www.startupindia.gov.in/content/sih/en/funding.html 

Initiatives like make in india, startup india, atmanirbhar bharat and the ONDC network have paved the way dor many government schemes to back Entrepreneurs.

If you are thinking of starting a small business or an MSME unit, you can search for government schemes that.offer loans at subsidised rates. There are even schemes for vendors, etc to help everyone start a small business even with limited or no capital.

Useful portals

Schemes

https://seedfund.startupindia.gov.in 

Grant/hackathon

Presales

Launch a waitlist, run some ada. The book $100 startup has some amazing advice on using this tactic.

Xxx used this tactic to generate xxx in revenue even before building their first product. 

If you have some understanding of the online world, and your audience, launching a presales campaign is an amazing opportunity for you to start your business the right way.

Not only will it ensure that you have a product market fit, but you'll already have a ready base of customers when you begin.