Raising Growth Capital For Your Business

By Author: avendusgroup
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India is an economy on the rise. Over the last few decades, the emergence of technology and the growth of internet has spurred many minds to be entrepreneurs. Thanks to the IT revolution and higher spending power, India is a perfect market for almost all goods and services. As a result of which, we have seen a rapid start-up boom. While the ideas are aplenty, sometimes it is not always enough to keep the dream alive. Most startups die down within a couple of years owing to various reasons. The chief among them - funding.
Funding is one of the major lifelines for any business, whether it be for start-ups or small businesses. Most start-ups need a steady influx of capital to keep the business running, from paying salaries to managing logistics to growing outwards. This funding is generally provided by individual backers or corporations who believe in the vision of the start-up. Such funding is called VC or Venture Capital. A company might need to raise funds multiple times a year or a couple of times in 3-4 years depending on their growth model.
This VC is not for everyone or not every start-up can find a VC to support ...
... their dreams. But that doesn’t mean it’s the end of the world. There are many other ways to raise capital for your business. The first thing to take stock of is how much capital is needed and it is indeed a smart move to get a specialist to help out. There are many financial advisory services firms in India that helps in exactly that. They make a list of your assets and collaterals, find avenues that are losing money so that you can plug it immediately and can help in regulating your cash flow. Such financial institutions can also give directions or advice on the best way to raise more capital.
Some other ways to raise capital are:
1. Invest your own –It is good to invest your own money into your venture because you are responsible for your own money rather than other’s money. Most angel investors also look whether you’d be willing to risk your money before they invest.
2. Friends & Family – Borrowing from friends and family is another option without paying off hefty interest. Moreover, it is also one of the fastest ways to gather capital at the shortest time.
3. Private Equity – Depending on when you need money, private equity could be a boon. To grow your company, you need a dedicated fund management system. Private Equity comes at a later stage of funding and could be instrumental in the growth of the company.
4. Bootstrapping –the process of reinvesting profits to grow organically. This doesn’t need external capital funding and if done smartly could lead the company to new heights without being dependant on anybody else.
5. Lease – going to a bank for lease could be another way to raise the needed capital.
The most important thing to note is that all of these ways to invest capital need your time so it’s very important to do a little research before making the best step forward for your company.