Raise Capital With Private Investors

If you have launched your own startup, your first biggest challenge is to raise capital. Fortunately, you choose from a lot of options to raise the funds your business needs. Among all the sources, crowdfunding is one of the best ones as it helps redefine how startups can get off the ground. In this article, we are going to help you know the benefits of raising capital with private investors through a crowdfunding platform. Read on to find out more.

Benefits of raising capital with private investors

1. Funding is not equity-based

First of all, crowdfunding is not necessarily equity-based. Although startups have the liberty to use the equity in order to catch the attention of potential investors, It’s not required to give up ownership to collect capital.

The good news is that some platforms allow their members to apply a reward-oriented approach in order to raise capital. For instance, if your business deals in a specific product, make sure you hand over a few units to your prospective investors before you roll it out for the ultimate users.

2. Attracting potential investors is easy

With crowdfunding, you can attract a lot of potential investors without putting in a lot of effort. Although you can try for angel investors, keep in mind that this process can cost you a lot of time. The reason is that you will have to pitch your small business concept several times.

On the other hand, if you use a crowdfunding platform, you will have to post your business pitch in only one place. And this page will be ready by hundreds of investors from across the globe.

These platforms have a lot of useful features that may help startups collect funds from investors. So, attracting potential investors and raising capital will be much easier using crowdfunding platforms.

3. Higher visibility

Crowdfunding can help you make your startup more visible. Since marketing may consume a large chunk of your budget, it makes sense to use a crowdfunding platform instead. For potential investors, it’s easy to fund a crowdfunding campaign.

And these activities can help boost the visibility of your brand. Plus, you can also attract investors for your next funding rounds.

The Bottom Line

If you want to raise funds for your startup, crowdfunding can be the best choice. All you need to do is become part of a crowdfunding platform and you will be able to tap into the pool of potential investors. And this will help you kick start your business and make it a success in the industry.

Ways to Raise Venture Capital to Start a New Business

Centuries back there was a time when people used to exchange goods for their livelihood and there was no money to buy things, known by the name of, “Barter System”. There was no buying or selling during those days. If you want “Wheat” and you had “Pulses” you could very well exchange the same with the vendor who had “Wheat” by negotiating a deal with him for exchange.

Then came an era when people starting working for others to earn money to run their livelihood. This further developed into Jobs from Government and Private Sector.

Now is the time when everyone enchants to open his own venture owing to establish something of his own and develop an empire which manifolds into a profitable venture as said “The Best income is even when you are sleeping the investment grows”.

An Idea of yours in today’s scenario can create a ripple effect which can change the lives of many. Very live examples are organisation like Facebook, Whatsapp, Google which started with a very small idea and from a room and have created an empire which inspires the Entrepreneur’s to create a Value Addition not only for them through Profit but for the Society too.

Many Starts up have started mushrooming in India now with many business ideas but they lack the rock bottom things and fail even though the business idea is too great. Inspite of the fact that they have best of people, knowledge, resources, ideas available to them but still they have tumbled. Very Live Example is Organisation like Snapdeal etc.

An Idea Flourishes when you have the Business Idea pitched to the Right People with Right Knowledge with effective and strong persuasion skills to invest money with the returns they would be getting. Firstly the Entreprenuer himself needs to be convinced that it is a great and a profitable Venture.

Second Important Thing which Start up lack is Hiring the Right and Suitable Candidates. Branding Institutes like IIM /IITs do bring in good resources but they cost very heavily to the organisation. Its always essential to hire people with experience rather than branding institutes. Experience people turn around organisation as they know how to manage crisis, success of an idea comes with experience and experience comes with learning, you know how to turn failures as these people have already experienced it.

Maintain Low Cost and Invest heavily in your people is the Right Idea for the Start ups.

Wanna Know do get in touch with me at gaggan_sahni@hotmail.com

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