Let’s begin the talk about capital or investment, it is the initial stage of every business organization which entrepreneur experience in his business journey, Capital is considered the blood life of business which means no business come in the existence of reality without capital or investment.
The idea transformed in to a successful business only with the help of capital or Investment, so every entrepreneur invest his hardly earned or saving in to his idea to begin a business, capital or investment help entrepreneur to arrange the factors to farm a successful and organized business.
Seed Capital Investment.
As the business progress the entrepreneur required fund / investment for farther, the entrepreneur can switch up on the seed capital, the mean of seed capital is any investment the entrepreneur raise either by his own savings or from his family and friends etc., this is typical investment which contribute for the team building, product development and market research etc. of the concern business.
Angle investor is an individual person who come as an angel to help the startups, Angel investor invest on startups idea, team, trust and sprite of funders, Angel investor support to the startups when product and services launched or ready to launch in the market. Startup gets good response solving market problem, this is the right time where funders improve the products and services and need to expand the market. The angel investors are the type of investors who take the maximum risk and invest his investment as the part of share in the startup only with the intention to enjoy the extremely good return in future from the concern.
Venture capital forms or VC companies makes huge investments in the startups in the form series funding in typical rounds like A, B,C,D …. H etc. each series has different tickets size of amount or different cheque size some specific funding stage will be there. seed capital are limited fund which startups gets from their Friends and families, once the company glow’s up the market will expand than the startups required hug capital at this stage Angel investor will invest his part of investment in the startups, And, at the future stage the startup or company will be ready to progress which required more and more investments and hence at that stage Venture capitalist provides the facility of huge investments to the startups to sustainable growth of the business.
Now a days Crowdfunding is very popular device of fund raising, many organizations and private crowdfunding platforms come forward to help the startups to rise the fund. Crowdfunding is the way of funding for a project or venture for raising small amounts of money from number of people, the advantage of the crowdfunding, once startup get the fund as a donation then no need to repay to the donor and no need to dilute a share. Many companies will involve in this type of funding process.
IPO Initial Public Offering
When company want to expand its business at national and international level the company required extremely high fund, than the company has the option to register itself as a public company, and, offer the transferable share to the public to raise the fund.
The Entrepreneurs can also raise fund from banks, the bank provides different types of loans in many way, in which Business loans is very common. Central & states government has launch many schemes for the startups and running business.
There are many govt. schemes available at different level of business, Banker also required current growing business and innovative startups to provide loan or financial aid of the government.
MSME Business Loans in 59 Minutes
Stand Up India Scheme & Coir Udyami Yojana
Credit Guarantee Fund Scheme for Micro and Small Enterprises,
National Small Industries Corporation Subsidy,
Credit Link Capital Subsidy Scheme for Technology Up gradation, And more
SC ST OBC Also have subsidy loans with minimum interest in Govt. schemes and SC & ST Corporation etc.
NBFC stands for a non-banking financial institution or non-bank financial company, NBFC companies registered under the Companies Act, NBFC is a financial institution that does not have a full banking license but It function as per the Indian Companies Act, giving loans and advances to the public. And acquire shares, bonds, stocks, securities and debentures from Government as well as local authority or any other marketable securities etc.
NBFCs also provides the loans, credit facilities and invest the fund, business loans etc.