Startups & Funding

Startups & Funding

Every day, around the world, hundreds of startups are launched, and at the same time, hundreds are shut down too. It’s the competitive market which has made this a battle where only the fittest survive. The rise of technology with the population paves the way for innovation, and that is where a startup is born. From doorstep delivery to hiring a bike, startups are becoming a part of our daily lives.

The digital world today has brought about a lot of changes when it comes to business. With the aim of solving everyday problems, new startups are being introduced every day.

Several MBA Colleges in Delhi have come up with Entrepreneurship Programs which helps students to gain insights into real businesses and inspire them to one day start their own. It helps the young entrepreneurs to inculcate leadership, managerial qualities, and decision making.

Startups & Funding

Getting the right fund for any startup is a challenging task. Founders and executive members have to struggle a lot to gain interest from investors and then to convert that into an investment.

An investment turns an idea into a business. Therefore, an investor, or angel, is what every entrepreneur requires.

The investors do a thorough background check of the firm and the founder. This is done so the investor can be sure about his money going to safe hands. The firm and the Angel then come up to a settlement, which respects the thoughts from both sides.

However, the majority of startups don’t get funds. Many fail due to low or no investment. Not being able to raise funds is the biggest nightmare of any startup and being able to seed fund one’s company isn’t just everyone’s cup of tea.

Startups & Funding

Small businesses face a problem during a negative cash flow. We know that negative cash flow is a part of every business and only after this will a business flourish. Therefore, when there’s negative cash flow, how does one handle it?

Working Capital Loan is one of the most suitable loans for startups or firms with low investment levels. It enables firms to continue operations and production even when the chart is down-going. Every business has to face losses, in the beginning, so that is why a loan with 12% – 16% interest can act as a survival strategy.

Advantages of Working Capital Loan:

● Such a loan doesn’t even require collateral to be deposited. They just check and verify your bills and outstanding previous months’ bills.
● They help to fulfill operational short-term goals.
● Moreover, taking a loan will keep the company to oneself. Usually, funds are given in exchange of equity.

Taking a loan may not sound so right, but when there’s no investor for support, trust yourself. If one thinks that their product is exceptional and is confident about it, they can go and fund themselves with such schemes from the banks. Just by keeping the model running could solve a lot of problems.

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