Startup Funding

Startup capital, often known as startup finance, is the sum of money required to establish a new company. It can come from a variety of sources and be used to any task that helps the startup in turning a concept into a functioning company

What are the sources of startup funding?

Although venture capital is frequently mentioned when discussing startup funding, it turns out that it is only one of the top six sources. On average, $531 billion is raised annually for startup finance, of which $185.5 billion comes from personal savings and credit, $60 billion from friends and family, $22 billion from venture capital, $20 billion from angel investors, $14 billion from banks, and $5.1 billion via crowdfunding.

Types of startup Funding

There are many different kinds of startup funding. Honest evaluation of the costs of your startup and the future growth of your business are necessary to identify the best funding source. Read about the top ways to fund a startup firm to get started and determine which strategy is best for your organization.


Many entrepreneurs use their own funds to finance their initial operations. The bootstrapping approach to finance is another name for it. In essence, you support your business using your own capital or savings as opposed to borrowing money from outside sources.

Once your business is up and running, your early profits are reinvested back into it until either significant growth occurs or you acquire outside capital.

Startup Grants

The authorities disburses the finances as loans via the Small Industries Development Bank of India (SIDBI) Fund of Funds Scheme. The scheme invests in project capital and opportunity funding finances (AIF) that put money into startups. Last year, the authorities additionally released the Startup India Seed Fund scheme which offers investment guide to early level startups.