5 Ways of Funding Your Startup

Rafeh Umair
Publish Date:
August 16, 2017

A lot of people excuse themselves from starting their businesses by saying “I don’t have the money do this”. The truth can’t be any further from this myth because this is a self imposed limitation which holds a lot of people from pursuing their ideas and passions.

I’m sure you must have heard a lot of stories of people who started from scratch and now they have built huge successful businesses. If you look at the journeys of let alone Steve Jobs, Bill Gates, Richard Branson, Warren Buffet and Mark Zuckerberg, you must be able to understand that no one is stopping you from pursuing your dream startup except yourself.

I do understand that money is important and it is a point of focus of all businesses but the recent development in the entrepreneurial landscape has enabled budding entrepreneurs to access finance easily without letting it become a hurdle. This is why we have formulated a guide for anyone who wishes to start their own business.

Following are some of the most recommended ways of financing your startup:

1. Bootstrapping:

It refers to arranging the funds for the start-up venture from one’s own personal savings, and not depending on capital from investor funding. Instead of working hard for acquiring funding from others, you will have the freedom of retaining equity while enjoying complete control over your startup with less outside influence. This strategy takes a lot of effort but in the end it pays off as you won’t have to share your profits with anyone else.

2. Crowdfunding:

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together. Crowdfunding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional means.

Read more: Crowdfunding Platforms Where Pakistani Entrepreneurs Can Apply

3. Venture Capital Firms:

Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long term growth potential. For startups without access to capital markets, venture capital is an essential source of money. Venture capital generally comes from well-off investors, investment banks and any other financial institutions that pool similar partnerships or investments.

This includes firms like DotZero Ventures, DYL Ventures, Mini Ventures, Lakson Investments etc. Some of the accelerators and incubators like Plan9, Invest2innovate, PlanetN  can provide funding in addition to the co-working space, mentoring and workshops etc.

4. Angel Investors:

An angel investor (also known as a business angel, informal investor, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. It is recommended to weigh the experience and skill set of investors too as their mentoring and guide can be an edge for your startup.

5. Grants:

There are several grants out there by leading MNC’s and Non Profits i.e. US Aid, DFID which support startups in particular domains i.e. Healthcare, Technology, AI.

Read More: Funding Opportunities for Pakistani Social Entrepreneurs. 

Share this

Leave a Reply

Leave a Reply

newest oldest most voted
Notify of

Thank you for the article.

Great blog that I enjoyed reading.