Startup Funding Sources in India


Indian startups aims is to promote entrepreneurship, construct entrepreneurial competences at scale and strengthen early phase support for startups by gathering together key stakeholders of the network including startup incubators / accelerators, angel investors, venture capitalists, startup support groups, mentors and technology corporations.


Finding a source of funding can be a challenge for many entrepreneurs, it’s not unusual for them to ask friends or family for their primary startup funding needs. Tapping into the pockets of friends and family has some benefits, but it also has some negative aspects. If your business fall short or you are behind in reimbursing the money, you may be headed for some clash with the aforesaid family and friends.

Make the understanding as professional as feasible. Receiving funds from private investors has even more advantages for both sides -- though definitely you should stride lightly when making your delicate financial relationships. The major differentiation between specialized investors and friends and family is that the later concerns about YOU.


Incubation centers have emerged as a vital source of investment and support for new businesses and foster youthful firms, helping them to survive in their early phase. Incubators offer infrastructural support, stage to do networking, administrative assistance and other supportive activities to start new business.

There has been an extensive raise in the number of incubation centers in India during the past 10 years. Incubators utilize their enormous acquaintances to attract investors towards the immense initiative and to turn that initiative into a beneficial business. .


Entrepreneurs obtain a quick start with the help of business incubators and accelerators. Business accelerators offer opinion, guidance and different forms of support for businesses in the startup period, it reduces the time period for starting up by working as a form of boot camp. Business accelerators help entrepreneurs kick the ground running; and it aims to turn business ideas into examples or products that are prepared for market in a matter of months.

Sponsors offer preliminary financial support and knowledge to small groups that can express a great product initiative. In return, the sponsors receive a small fair stake in the new business. Selected startups obtain financial support, physical infrastructure and business tutoring from Indian Startup network of professionals, advisers, and financiers.


An angel is a sky-scraping net-worth entity who spends his or her own funds in start-up companies in exchange for an equity share of the business. Angel Investors offer economic assistance for small startups or entrepreneurs. The investment they offer can be a one-time injection of start up money or continuing support to carry the business during critical periods.

Angel investors give more positive terms than other lenders, as they are regularly investing in the individual rather than the feasibility of the business. They are paying attention on helping the business be successful, rather than reaping enormous income from their investment.


Venture Capital' Money is provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets.

Venture capital (VC) is financial support invested, or accessible for investment, in an endeavor that offers the possibility of profit along with the likelihood of loss. Venture capital is the second or third phase of a conventional startup financing series, which begins with the entrepreneurs putting their personal available financial support into a shoestring procedure.


Seed capital is the funding necessary to get a new company started. This preliminary funding, which generally comes from the business owner(s) and maybe friends and family, supports beginning activities such as market research, product research and development (R&D) and business plan improvement. At this early stage, most entrepreneurs need guidance and mentoring along with the financial support.

Seed capital funding is measured high-risk since the business is not fully practical and has no track evidence. Investors who offer seed capital funding often do so for a stake in the company. Once a startup has demonstrated feasibility, it is more likely to magnetize venture capital or angel investment to provide better funds needed to get the business up and running.


The Indian Startup programs are intended to equip entrepreneurs to establish well run, technically advanced and profitable companies in India. Indian Startups is a networking group for Indians across the world to help venture new startups, nurture existing startups, encourage entrepreneurship, provide incubation facilities, co-working space, seed funding, crowd funding, investor connections, co-founders, mentors, advisers. Also provide wherever possible free website, legal, patent, accounting, marketing and other essential services needed for start-ups.

Wednesday, 03rd Feb 2016, 11:33:00 AM

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