Bath Bomb BoxesLet’s Know More About Startup Fundraising

Startup fundraising in simple words is the process of raising money that you need to uplift your startup from just an idea to a real product. Fundraising is also considered as the most challenging step to uplift the startup from the ground. If you were thinking to take it lightly, then change your perspective because it is going to be a painful journey filled with denial. No matter how complicated and difficult fundraising is, it is the only process that can help your business grow from the bottom to the top. So, gather yourself up and read this article to learn more about the fundraising procedure.

The Different Stages Of Fundraising For Startups

If you are waiting for a huge investment that would take your business to the peak immediately, then it’s time to move on. You need to start somewhere, and if you are not getting the right investment, it’s time for bootstrapping. Don’t know about bootstrapping yet? Let’s gather some information.


In simple words, bootstrapping is the personal investment that you put in your startup. Instead of waiting for the angel investor, you can put your own money into the business to give it a start. In the business world, this process is called bootstrapping. The entrepreneurs who invest their own money in the company are seen as concentrated and focussed. Not only investors but the art of saving money in your business can also help you raise the fund.
But if you don’t have the money to start your own business, then keep reading to know the tactics for attracting angel investor and raising your company funds.

Seed Capital

Seed capital is the initial funding that your startup companyreceives to get off the shore. It is the funding that you need to start your business. Mostly, seed capital comes in the category of your savings, the money you lend from your friends or relatives as the first step to begin your business. Seed capital plays a vital role in future investments as it is one of the factors that interest the investor. Some other factors that interest the investor are the nature of your business, your financial history, professional skills, your business management records, and so on.
Offering seed capital investor equity in your business can lower the risk on the investors end. This can also inspire the investor to make more investment.

Venture Capital

Once the investor evaluates your business and gets the conclusion that everything is up to par, they check if your business has the potential to succeed in the long run. Venture capital investors are mostly interested in the equity in your company in exchange for funds and other resources. You must be careful in the process, especially if you intend to be the only decision-maker of your company.
Also, before arranging a meeting with your venture capital investor, research a couple of factors about them that includes their information, previous accomplishments, their business interest etc.

Other stages of fundraising include mezzanine financing and an initial public offering. If you are new to the business world, then there are fewer chances that you’ve heard about mezzanine financing. In simple words, mezzanine financing is the startup loan any company takes as a means of initial fundraising. Initial public offering (IPO) is the process of going public by offering the shares of your company to the public for the very first time. IPO is seen as the most desirable form of fundraising strategies and can be an excellent start for your startup.


So, there were all the stages and strategies of startup fundraising. If you are still stuck with the idea of starting your business, then it’s time to kickstart it with bootstrapping. With this article, you can uplift your business idea into reality. To get angel investors for your startup, you must focus on various factors such as preparing an astounding pitch, showing them that you are concentrated on your idea, explaining them your exit strategy and so on.

Author's Bio: 

Hi, I am Sujit. I am a passionate blogger and crypto admirer. I work for Cryptoknowmics which is known for the best Cryptocurrency Arbitrage Trading and ethereum airdrop. I like to find and share new information across the web. You can follow me on Twitter and Linkedin too.