How To Grow Capital For Your Business Venture (+FREE TEMPLATES)

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It takes a lot of capital to run a business venture. While the easiest way to get start-up, funding is by using your own savings, not everyone has a handsome fortune to finance their start-ups’ business ventures. Don’t worry, because here is your guide on how you can collect capital for your new business venture.
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Learn more on How To Grow Capital For Your Business Venture: https://bit.ly/3eZ7n8j

FREE TEMPLATES!!!
Request for Angel Investor Referral: https://bit.ly/3l4LrfY
Reference Letter to Angel Investor: https://bit.ly/3iNSoPq
Investment Agreement- Single Investor: https://bit.ly/2TCu3DK
Investment Agreement- Syndicate PE Investors: https://bit.ly/3yni3W5
Letter to Bank regarding a Business Loan Application: https://bit.ly/3xb2cYW
Commercial Loan Agreement (Corporate Borrower): https://bit.ly/3rQAr7j

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It takes a lot of capital to run a business venture. Even if you have a solid business plan, the reality is that without sufficient funding, you cannot afford new research, expand into new areas, improve marketing and generally be open to new possibilities, all of which is crucial at the beginning stages. Don’t worry, because here is your guide on how you can collect capital for your new business venture.

1. Friends and Family
You should first approach your family and friends. Asking for funds from family and friends is often easier than other kinds of financing. It takes little time, and the process is not as complicated. However, friends and family funding still have its disadvantages. If your business venture fails, you risk both your savings and your loved ones’ money. This may pose an adverse effect on your personal relationships.

2. Angel Investors
An angel investor, or a seed investor, is an individual who invests in start-ups. Angel investors usually ask for ownership equity in the business in return for their investment. Angel investors can be found through networking. Or you can submit your proposal to potential investors on online platforms such as: AngelList, SeedInvest, On Startups, Life Science Angels, Golden Seeds LLC

3. Venture Capital
Venture capital firms fund start-ups with long-term growth potential. You must give up some ownership in your business to the venture capital firm in exchange for the funds. The funds come from individual investors, investment banks and financial institutions. It is advantageous for start-ups to obtain funding from venture capital firms because other forms of support, for instance, technical and strategic assistance, may be available as well.
Generally, venture capital firms invest in young companies, participating in Series A and B funding. While private equity firms invest at a later stage, funding Series C and pre-IPO companies

4. Crowdfunding
Crowdfunding refers to many individuals or groups funding your business venture. The most popular way to crowdfund is to present your business on an online crowdfunding platform and attract investors to fund you.
There are different types of crowdfunding. Unlike in equity and debt crowdfunding where you give up a stake in your business venture or obtain a loan, in rewards-based crowdfunding you offer products, services, or discounts in return for the investment fund. Donation crowdfunding only applies to start-ups related to a charitable cause. The investors fund your ideas and demand nothing in return as a gesture of goodwill.

5. Business Loan
You can obtain loans for your business venture from several types of lenders, such as Commercial Banks, Online Lenders.

6. Government/ Business Grants
These are schemes to fund start-ups to drive businesses, promote innovation and support different industries. These grants a re often provided by the government, trade associations or large corporations. Grants are particularly important if you are running a social enterprise or a non-governmental organisation (NGO) that is not expected to be profitable in the future. For business grants, normally you are not required to pay back the money so long as you meet the goals stipulated under the grant.

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