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• How do I finance my startup?

• 94% of new businesses fail during first year of operation due to Lack of
Funding
• Money is the bloodline of any business
• Funding depends largely on the nature and type of the business
1. Bootstrapping your startup business
 Situation in which an entrepreneur starts a company with little capital.
 Individual is said to be bootstrapping when he or she attempts to found and build a
company from personal finances
 Easy to raise due to less formalities/compliances, plus less costs of raising
 An effective way of startup financing, specially when you are just starting your
business
 It’s like taking a loan, pre-order, contribution or investments from more than one
person at the same time
 create an online profile and explain your project and fund-raising goals and share
the same with public at large
 Some of the popular crowdfunding sites in India are Indiegogo, Wishberry, Ketto,
Fundlined and Catapooolt
 A high net worth individual who provides financing to a start-up, either in
exchange for convertible debt or equity
 Also contributes their advice and business experience
 They prefer to take more risks in investment for higher returns
 Angel investors have helped to start up many prominent companies, including
Google, Yahoo and Alibaba
 Banks is the first place that entrepreneurs go when thinking about funding
 Involve the usual process of sharing the business plan and the valuation details,
along with the project report
 Leading Indian banks – Bank Of Baroda, HDFC, ICICI and Axis banks have more
than 7-8 different options to offer collateral free business loans
 Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA
Yojana) is targeted at Rs 3 lakh crore in budget 2018-19
 SIDBI – Small Industries Development Bank Of India also offer business loans to
MSME sector
 Different states have come up different programs to encourage small businesses.
Eg- Maharashtra Centre for Entrepreneurship Development, Rajasthan Startup
Fest, etc
First Year Budget Cost
Salaries 510,000
Repairs & maintenance 8,400
Local Advertising 5,000
Marketing 51,400
Accounting and legal 5,000
Rent 17,798
Internet & Telephone 5,940
Equipment 48,000
Total $651,548

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