One of the biggest challenges for startups and small businesses in India is securing adequate funding. A brilliant idea often remains just an idea without financial backing. Understanding the different types of funding available can help entrepreneurs make informed decisions and avoid financial roadblocks.
Seed funding is the initial capital required to start your business. It is usually sourced from personal savings, friends, or family. This funding helps with initial expenses like market research, product development, and registration.
Angel investors are high-net-worth individuals who invest in startups at an early stage in exchange for equity. They not only provide funds but also mentorship, networking opportunities, and industry insights.
When startups reach a growth stage and require larger funding to scale operations, venture capital firms step in. While VC funding offers large sums, it also requires a solid business model and proof of profitability.
