7 Funding Options to Help Raise Startup Capital
7 Funding Options to Help Raise Startup Capital


Date: 18 May 2021

7 Funding Options to help Raise Startup Capital 

All business startups mostly begin with many high hopes and investor confidence. But there are a few circumstances, which can make or break any business startup. Many types of research conducted by experts have shown that many unwelcoming demands can break a business set up within a year. The most important thing and the main requirement for any business is capital because capital is the primary and main ingredient for success. Without a satisfactory quality of finance, businesses tend to break into pieces. While money doesn't come very easy, there are some ways you can seek funding for your business startup.

So, here are 7 funding options to source the proper funding for your business:

1. Bootstrap Business
2. Run Crowdfunding Campaign
3. Raise Funds Through Bank Loan
4. Loans from Microfinance Providers
5. An investor
6. Government Programs
7. Other ways to raise funds for your business

1. Bootstrap Business

If you want to succeed in your first-ever business startup, you must need some saved-up funds that you can easily access. The procedure of utilizing your own saved up money or funding from friends or family is known as bootstrapping. The funding from your friends and family is an excellent and most used way to kick off your business startup.

If you approach the right family member or friends that trust you and your idea entirely, you can get some funds very easily. Most importantly, investing your own money will make investors more likely to work with you down the line.


Easily accessible.

  • Zero to flexible interest rate​​​​​​​


  • It only works for small-scale start-ups.

2. Run Crowdfunding Campaign 

Nowadays, technology has made it very easy for us to share our problems on a social platform. Setting up an individual to pitch business ideas and their obstacles to a proper community of investors or people who want to support an idea is called Crowdfunding.


Now, some people may not understand how it works. So basically, an individual makes a business pitch on a crowdfunding platform where he/she shares business ideas, models, and potential growth. If anyone likes the idea on the platform, they will support the business by donating funds. 


If you want to make a video for the pitch, it must show the value of your idea and the product and why you need support. Having a good website can help you in this case.


  • Provide funding and marketing as well.
  • You don't need a broker or a middle man of financing.


  • Crowdfunding platforms are very competitive. 
  • If your pitch is not excellent, then it isn't easy. 


3. Raise Funds Through Bank Loan

Many banks are providing many financial loans to individuals who approach them with a good business plan. So, in this case, the business planning has to be well structured.

They provide loans in two forms -

  • Capital Loan
  • Funding

Speaking of business loans, in some cases to get approved, you need to meet some of their requirements like -

  • You have been doing the business for 2years.
  • Your business has substantial revenues annually etc.


  • You can access a fairly large amount of capital sufficient to start your business. 


  • The risk of Collateral loss is very high.


4. Loans from Microfinance Providers

Some non-banking financial Corporations give loans to any individual who needs a loan without any conventional banks and credit repair services. 


5. An investor

An individual with excellent annual income sourcing who can operate and team up with the business owner to give funds is called an investor. An investor can be an excellent source of capital for your business. Most importantly, it would be best if you had a solid business plan to work together. 


6. Government Programs

Many government programs offer capital to startup businesses. It is one of the best ways to source your funding. Once the government approves your plan, you can avail of a good fund for your business. 


7. Other ways to raise funds for your business 

  • Pre product sale

Pre-sale of your products before launching is a fantastic way to raise funds. Companies like Samsung and Apple adopt this procedure. 

  • Selling asset

Selling your asset can give you lots of money for funding. Also, it is a quick way of funding your business. 

  • Credit card

    The best instant way of funding is business credit cards.

  • Source by winning contests

Another way to source funds is through winning a competition or a contest.



These are the tactics you can adapt to make your business more successful. However, bootstrapping is the best way to kick off your small business startup. But in this competitive market, you must take your funding sources very seriously. So, don't get discouraged if you don't get a good result. Keep trying, and surely you will get an excellent result eventually.