Challenges faced by Startups in getting growth fund
‘From jewellery to dog food to SaaS (software as a service) products, start ups are popping up in virtually every field around the world, despite the risks. As an entrepreneur, you will face several challenges while seeking the funds, in part because you’ll have to convince others that your idea is a solid investment.’
Innovative products and business models are the foundations of a promising start up. However, a steady flow of funds, especially in the early stages, will enable to turn those ideas into reality.
Funding is crucial for improving technology, hiring the right people, and launching a comprehensive marketing strategy to get a foothold in the market. However, sourcing enough money to start your new venture can be difficult.
Lack of capital is a big barrier to start ups, but not always the biggest – “The biggest is actually lack of access to Venture Capitalists who can give the capital needed but do not know themselves that what they exactly looking for.”
Main Roadblock of the start ups is to convince the investors, encounter several questions from them to convince them that business is worth their money is no walk … in the pursuit of attaining sustainable growth in this fast-paced world.
“People only invest in things they know and people they trust, so creating a strong, diverse network of good, smart people is a key to our potential success.”
Innovative products and business models are the foundations of a promising startup; steady flow of funds, especially in the early stages, turn those ideas into reality.
Funding is crucial for improving technology, hiring the right people, and launching a comprehensive marketing strategy to get a foothold in the market.
The main challenge is sourcing enough money to start your new venture – in cases as follows:
- Projecting a Scalable business model
- Projecting a viable Business model, viz, a model which works.
- Projecting Concrete & Specific need for funding – Milestones need to be measurable achievement
- Demonstrating company’s positive cash flow – Figure out where cash flow bottoms out and add appropriate buffer accordingly.
- Ensuring funding request in-line with financial projections.
Overextension of time, money, and resources, investors will be hesitant to welcome startups with open arms.
Startups can choose options below as source of funding:
- Boot Strapping or Self Funding
- Bank Loan
- Loan from Family & Friend in flexible returning terms
- Venture Capitalists
- Angel Investors
- Crowd Funding
Ambuja Neotia Incubation Pvt. Ltd. (ANIPL) based in Kolkata, West Bengal , India , extends strong hand-holding as Venture Capitalist as well as Angel Investor to bring the dreams of startups into realm.
Incubates here feel relaxed as getting funding is no more their challenge.