All startups seek funding at some point to grow their business further or maybe to diverge the second branch of business, but do you know there are different types of funding as well? You don’t? Well, we’ll talk about them in this blog. Investment is one of the biggest concerns for startups once they are up and running because firstly, it’s not easy to secure one, and secondly, they need it to keep scaling further. Generally, what startups do is, pick up pitch deck design, create business model slides and start seeking funding. If you belong to this category, read this blog until the end to find out more ways of getting funding for your business.
This blog also sheds light on which type of funding is ideal for what kind of business (in general). So, without further ado let’s get started.
Self-Funding
Also known as bootstrapping, this one is too obvious. You fund your business initially to give it the initial push that it needs and then you seek funding. But, that’s not all, self-funding also means that if you are unable to land any investors, you go out of your way to invest life savings in your business. This can be a very risky decision if you are not backed by a talented team and an idea that’s already generating income. Because if you fail, you might lose it all. Only go for this means when you are starting up your business, and at the last stage when you have exhausted all investment options and this is the only thing you can do.
Crowdfunding
This has become a fairly popular option for startups who do not wish to go and seek funding the traditional way, or maybe they’ve tried and exhausted it. Platforms like Kickstarter, fundable have helped thousands of startups achieve their initial funding goal and succeed in business. In this type of business, you can set a funding goal, milestones that you want to achieve with the funding, and how you’re going to reward the people who fund you. Rather than going for big investors, the idea is to let the public help you gather the amount. It’s also popular because it presents your idea directly to people who, if invest in your business, will do indirect marketing for you (vocal publicity).
Angel Investors
If you want a helping hand who can guide you through the initial years of your business, seek funding from Angel investors, after all, they are called that for a reason. Angel investors are successful business owners, managers, or people who have helped multiple companies like you grow multifold. They can invest a decent sum in your company as a loan/stock collateral and even guide you in achieving your milestones.
Venture Capitalists
In the investment world, venture capitalists are whales, i.e., the largest organisms, if you want a huge amount of investment, achieving funding from venture firms should be your goal. But it isn’t that easy. You know about pitch decks, right? You would need them here and not a quickly drafted pitch. You would need a pitch deck presentation design that represents the whole idea, concept, competition, roadmap of your company in just 10-15 business slides. So, it would be ideal to take help from a pitch deck consulting service. Keep one thing in mind though, venture capitalists always take a stake of equity in your company and they may want to head your business in a particular direction. They will have a big say in your company’s operations, but they can invest millions of dollars as well.
Of course, there are many other methods like seeking investment from family/friends/colleagues or government schemes and more, but the four investment types mentioned above are the most common ones. If you want to follow a step-by-step approach, it would be ideal to go for venture capitalists first, Angel investors, then crowdfunding and if it doesn’t work, go for self-funding. If you need help with your pitch deck design, you can connect with us, we provide services like custom pitch deck creation, pitch deck redesign, financial forecasting, and more.
