Top 10 Sources of Seed Funding for New Startups

Ever wonder how these innovative, really world-changing start-ups come to be? The answer is seed funding. 

So you get this fantastic idea. It is innovative, it is exciting, and you just get the feeling it’s something to change the world, but a little wrinkle stands in your way which is money. That is exactly where seed funding comes into place!  

Seed Capital is somewhat like the push that your start-up needs to be set rolling. It is just the initial funding received from the investors to bring the idea or product to fruition and get business rolling. 

Suppose you want to open a lemonade stand. You are going to need money for lemons, sugar, a stand, and perhaps an awesome cool sign. Seed funding is just getting that money from your friends or family to help you get started with your cool lemonade stand. 

Where Do Those Magic Beans Come From? 

Seed funding can come from various sources, such as: 

Bootstrapping:

Here, you are funding your business by working with money in your pocket. It again shows that you are flexible and have dedication to the idea. It can be done either by means of your savings, doing a side hustle, or selling some part of your things to obtain the funds masses. It’s one excellent way of showing devotion, as well as to get business rolling up without seeking funding from other people. 

Friends and family:

Sometimes, your closest human can be your biggest ally. Do not be afraid of asking friends and family members who believe in your vision and would be willing to invest in your dream. That can be a good source for early-stage funding and help in establishing a good support network. 

Angel investors:

They are highly interested in the investment of an early-stage company. They possess expertise in the industry, and they also contribute their experience by mentoring, counseling, as well as providing money into a venture capital. Normally, they invest from their pocket and focus on high growth prospects. 

Venture Capital Company:

They are professional investors who run a fund specifically designated for investing in early-stage firms. They prefer to invest bigger sums of money than angel investors and prefer businesses that have high growth potential with scalable profitability. Venture capitalists often retain an active interest in guiding the businesses they invested in. 

Incubator & Accelerator:

They offer a nurturing incubating environment, mentorship, and the resources and funds that will help to grow startups. Others specialize in specific industries or technologies and could be very invaluable for companies seeking developmental support and contacts. 

Crowdfunding:

Raising a large amount of money from a high number of people. That most commonly happens by using an online platform. It is a great choice for the startup, especially where a product has a high level of community involvement or appeal to a wide audience. It also will serve to help validate your idea and gain early traction. 

Government Programs:

Government programs many offers Indian provides for the startups. Startup India Seed Fund Scheme, Under this, seed fund grants to India along with other funding options for newly founded businesses can be availed. Several governmental schemes help early-stage problems that come up while availing the much-needed funds and resources for startups. 

Microfinance Institutions:

Microfinance provides entrepreneurs with the small loans. Some of them are more lenient in terms, as compared to that of conventional banks. These microfinance institutions can be a great source for start-ups that are not qualified enough for bank loans or which require only small amounts of funds. 

Equity Crowdfunding Platforms:

Under equity crowdfunding, you are allowed to raise funds from as many investors as possible in return for equity in your company. In fact, for most startups planning to access higher funding amounts and give a stake in their company, equity crowdfunding would be the better option. 

Revenue-Based Financing:

This is another relatively new funding model wherein investors trade a share of your future revenues for capital. Revenue-based financing becomes an excellent option for many start-ups appearing to manifest a clear path for revenue generation. Such funding, however, might be flexible. 

Fuel Your Startup Dreams with Seed Funding & StartupFlora 

We also know that seed funding is quite daunting. That’s where StartupFlora comes in! We are your friendly mentor throughout this journey. 

How are we going to help you? 

  • Seed Funding: We can describe seed funding to you in very simple terms just so you know more. 
  • Business Plan: Don’t worry-we’ll present you with your business plan on which any investor will fall. 
  • Link to Investors: Okay, we will link you directly with those that will implement this startup of yours 

Ready to Grow Your Dreams? 

Seed funding would be sunshine and water for gaining wings to complete your dream. Now, as your idea is brightening before the sun even rises, then stop thinking and get ready to make seed Money under Startup India Registration or DPIIT Certification. A little hard work plus effective team effort plus the push made by StartupFlora may ensure that your flowers bloom at the proper time! 

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