Jan 06, 2022: Forms of Business Funding
There is a massive amount of capital out there for your business, there is absolutely no shortage of money out there. Just in the US, there are over 300,000 angel investors and 1.8 million in India.
Ways and types to raise funds for our business :
✔️ Bootstrapping is when an entrepreneur starts a company with little capital, relying on money other than outside investment. An individual is said to be bootstrapping when they attempt to found and build a company from personal finances or the operating revenues of the new company.
✔️ Angel investors are usually high net worth individuals who provide financial backing for small startups or entrepreneurs.
✔️ Venture capital is financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential.
✔️ Then there is corporate venture capital provided by companies who are typically seeking strategic investment.
✔️ Government programs can support and fund startups too. Resources in the US can include National Science Foundation, which provides $190 million annually.
✔️ Then there are several investment officers focused on managing the assets of a wealthy family typically with $100 million or more in assets.
✔️ Banks are financial institutions licensed to receive deposits and make loans, are typically very risk-averse.