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Investment Bank is a financial institution that helps individuals, entities, or governments to raise capital and also provide financial consultancy services. They act as an intermediary between investors and companies/startups. An investment banker assists startups in raising funds to start their business and helps investors find investment opportunities. Apart from finding capital, it supports startups in preparing business plans and pitch decks and entering the gateway of the capital market. Hence, Let’s look at the top investment banks in India:

1. Axis Capital Limited:

One of India’s central investment banks, Axis Capital Limited, is a leading equity firm. Firstly Axis Capital was founded in 2005 in Mumbai as Enam Securities Private Limited. Also, Axis Capital Ltd owns Axis Bank, the largest private sector bank. The bank offers solutions in institutional equities and investment banking. It provides financial services to corporations, investors, and government bodies in private equity, equity capital markets, mergers & acquisitions, and institutional equities.

2. Avendus Capital:

Avendus Capital is a leading financial service company that offers tailor-made solutions to asset management, wealth management and credit transactions.Similarly it offers investment banking too.founded in 1999 with its headquarters in Mumbai. The Avendus brings together ideas, innovation, and people to empower high-performing entrepreneurs, wealth creators, and leaders of the new-age economy to fulfil their dreams. The firm advises large global corporations on strategic matters and also about mergers and acquisitions transactions. The complete subsidiaries of Avendus capital include Avendus Capital Incorporation and Avendus Capital Private Limited, situated in New York and London, respectively.

3. Edelweiss Financial Services Limited (EFSL):

Edelweiss Financial Service Limited was a part of Edelweiss Group, founded by Rashesh Shah and Venkat Ramaswami in 1995. India’s leading financial service companies, Edelweiss, provide a spectrum of financial services to a substantial client base, including corporations, institutions, and individuals. They also offer assistance, including credit facilities, franchise and advisory business (Asset Management, Wealth Management, and Capital markets), and Insurance (General and Life Insurance). Credit facilities comprise retail and corporate credit, SME and business loans, agriculture and rural finance, wholesale mortgages and distressed credit. Centrum India and SMC Finance are the main competitors of Edelweiss.

4. JM Financial Institution Securities:

The JM Financial Institution Securities established from 1998 with its headquarters in Mumbai. They eventually provide all-in-one investment financial services comprising Investment banking, wealth management (fee and fund based activities), Asset management (mutual fund business), Mortgage lending (retail mortgage lending and wholesale mortgage lending), Distressed Credit (Asset reconstruction business). The company works with high net worth individuals, big corporations, and retail investors. They are notable for their private equity services in the business.

5. ICICI Securities Limited(I-Sec):

ICICI Securities Limited is a subsidiary of ICICI Bank Ltd. Firstly it began its operations in 1995 with its headquarters in Mumbai. Subsequently the firm conveys advisory services to corporations, financial institutions, and retail investors. Some of the company’s assistance comprises Investment banking, Institutional broking, Retail broking, Wealth management, placement of IPO. The company is the largest e-brokerage business in India. The company offers a spectrum of products and services in derivatives, equities, research, and advisory services, including equity portfolio advisory, financial planning, retirement planning, and estate planning.

6. IDBI Capital:

IDBI Capital is known to be IDBI Capital Market Services Limited. It is a wholly-owned subsidiary of IDBI Bank, incorporated in 1993. It is an investment banking company that offers a perfect bundle of services and products, including capital market products, Fund management, Private equity, Underwriting as well as debt replacement . They aim to maintain integrity and transparency to guide their vision to have an International presence and work cohesively with passion and commitment towards the benefits of the customers they serve.

7. O3 Capital Global Advisory Services:

The 03 Capital, a mid-market investment bank formed in 1993, specialises in providing strategic and financial advice to the retail, institutional and corporate clients. The company focuses on corporate finance as well as alternate asset management as its core business. They provide unbiased and tailored solutions to different industrialists, healthcare, life science, and financial services too. Avendus Capital is the edge-to-edge competitor of O3 capital.

8. Veda Corporate Advisors:

The Veda Corporate Advisors the largest Chennai-based investment banking firm, founded in 2003. The firm assists clients in mergers and acquisitions, buyouts, venture capital, joint venture, and private equity. It serves real estate, health care, media, infrastructure, and financial services. The company authorised and paid-up capital stands at 2,50,000 and 1,34,420, respectively.

9. Spark Capital:

Firstly Spark Capital is founded in 2001, with its headquarters located in Bangalore. It is one of the prime mid-market investment banks that connect with financial services encompassing Investment Banking, Fixed Income Advisory, Wealth Advisory, and Institutional Equities. Above all customer satisfaction is the core objective, thereby maintaining a sustainable and long-term relationship with clients. Sectors, where they built considerable transaction experience, are fintech, healthcare, commerce, infrastructure, and media. Spark Capital managed to be on the League table all time.

10. Unitus Capital:

Unitus Capital was India’s first impact-based investment banking firm. It was established in 2008, with its headquarters in Bangalore. It provides services such as Private Equity, Corporate Advisory, Debt Finance, and Structured Product. They are dedicated to delivering top-tier capital raising and advising services to local and international investors to assist businesses while positively impacting society and the environment. Agriculture, education, healthcare, and financial inclusion are the most heavily serviced industries.

11. Mape Advisory Group:

Mape Advisory Group, firstly formed in 2001, is a leading investment bank focused on Private Equity and Merger and Acquisition advisory starting from origination to closure. It has been consistently ranking top 10 investment in India. A team of senior investment bankers founds them to help their clients identify and implement effective transaction strategies. In addition, they work with India’s most prominent industries across Telecom, Technology, Healthcare, financial services, Engineering.

12. Ambit Corporate Finance:

Ambit is one of the premier independent investment banks formed in 2006. In particular it provides capital and financial advice to its clients, say, high net worth individuals, self-employed individuals, corporates, institutions, Small and Medium Enterprises. The firm concentrated on furnishing customized solutions that are appropriate to their client’s needs. It consists of 6 core business groups: Asset Management, Corporate Finance, Equity Capital Market, Institutional Equities and Research, Global Private Clients, and Non-Banking Finance Company.

Investment banks are the most demanding sector as they focus on managing and increasing clients’ financial needs, helping them grow their businesses. A good investment banker knows the best ways to raise funds by adding more creative ideas to economic models. Moreover if you are looking for the best investors to fund your startups, Let’s get connected – Our team of professionals makes startup funding possible.

The fundraising process demands documents to pitch investors. Scaalex specialises in building investor focussed Financial modelling, Valuation report, Business Plan and Due Diligence reports. Talk to our experts to learn more about fundraising process.

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Lack of finance is the main limitation in the infrastructural sector in India. The Government recognises that infrastructure requires a significant investment that the public cannot finance alone. Therefore , in other words, it cannot be financially viable because of long capital investment requirements, long gestation period, and small revenue flows in the future. Most importantly, the Government decided to implement a new scheme named-“Viability Gap Funding” (VGF), formed in 2004, administered by the Ministry of Finance (Nirmala Seetharaman). In other words, It aims to complete the infrastructure projects successfully that are economically justified but fall short of financial unviable. On a year-to-year basis Plan Scheme had designed for this fund, and the budget is allocated.

However, earlier projects were limited to economic infrastructure. Later, In 2006, The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved for revamping or updating the VGF scheme as “the Scheme for Financial Support to Public-Private Participation (PPP),” extended over five years (till Financial Year 2024-2025). PPP refers to a project based on a contract between Government and a Statutory entity or private sector company for supporting infrastructure services. The new scheme encouraged both social and economic infrastructure projects. It aims to support projects that come under PPP and facilitate private sector investment in social infrastructure.

Further, the revamped scheme becomes operative within one month of Cabinet Approval,  financed from budgetary support of the Ministry of Finance. A total outlay of 8,100 crores for investment was predicted, out of which 6,000 crores was set apart for PPP projects in the economic infrastructure division and the remaining 2,100 crores for social infrastructure projects. In short, the VGF scheme is a one-time or deferred grant to support infrastructure projects that comes under Public-Private Partnerships (PPP).

List of sectors under VGF Scheme:

  • Health and education development.
  • Roads, railways, seaports, airports, bridges etc
  • Oil and gas pipelines
  • Electricity
  • Irrigation
  • Soil testing laboratories
  • Terminal markets
  • Water supply, sewerage, and solid waste management
  • Telecommunication (Fixed Network)
  • Telecommunication towers
  • Infrastructure projects in Special Economic Zones(SEZ).
  • Capital investment in the creation of modern storage capacity(including cold chains and post-harvest storage)
  • Common infrastructure in agriculture markets

 Objectives:

  • To attract and promote more PPP’s in social and economic infrastructure, thereby making essential projects viable.
  • To facilitate investment in social sectors such as education, health, water supply, wastewater, solid waste management.
  • Building new hospitals and schools generate more job opportunities, especially in remote areas.
  • The new scheme will be beneficial to the public as it helps develop the country’s infrastructure.
  • It focuses on integrating private participation of social sectors.

Applicability and Eligibility:

  • Within 30 days of receipt of the project proposal, Empowered Committee shall inform the Government/Statutory Entity about the eligibility of projects for VGF.
  • It can be only applicable to PPP projects proposed by Central Government/Central ministries/Statutory Entities as the case may be.
  • The project shall be implemented (developed, financed, constructed, maintained for the project term) by a Private Sector Company for funding.
  • The project should provide service against payment of a pre-determined tariff or user charges.
  • A private sector company shall be eligible only if selected through open and transparent competitive bidding.
  • The proposal will be applicable only if the contract/concession is awarded in favor of a private sector company.

Funding:

  • Funds shall be invited by concerned State government/Central Ministries/Statutory Entities in the form of the capital grant within four months of the approval of the Empowered Committee. The period may be extended by the Department of Economic Affairs, if necessary.
  • State Government/statutory entity/Ministry will restrict funding to 20% of the Total Project Cost if the sponsoring State Government/Statutory Entity/Ministry aims to provide assistance over and above the stipulated amount under VGF.

Disbursement of Grants:

  • The VGF grant will be disbursed at the construction stage only if the private sector company has subscribed and expended the equity contribution required for the project.
  • After the recommendation of the sponsoring authority, the Empowered Authority can release the grant to an escrow account.
  • The Empowered Committee, lead financial institution, and Private Sector Company shall enter into a tripartite agreement as prescribed by Empowered Committee from time to time.

Monitoring:

A lead financial institution (refers to the financial institution funding the PPP projects)  shall send regular monitoring and evaluation of projects for the disbursal of VGF and quarterly progress reports to the Empowered Committee.

The revamped VGF has two components:

1. Sub scheme 1:

  • 30% of the Total Project Cost (TPC) of the project is treated as VGF by the Central Government. Statutory entity/Central Ministry/State Government also provides additional support for funding (up to 30% of TPC).
  • Eligibility:

It mainly focuses on catering social sector projects such as Health, education, water supply, wastewater treatment, solid waste management.  These projects may face poor revenue streams and bankability issues to serve fully capital costs, and also projects should have at least 100% operational cost recovery.

 2. Sub scheme 2:

  • This scheme supports demonstration/pilot social sector projects. Central and State Government provides up to 80% of capital expenditure and 50% of Operation and Maintenance(O&M) for VGF over the first five years.
  • Eligibility:

The projects should come from the Health and Education sectors with a minimum of 50% Operational cost recovery.

64 projects have been accorded ‘final approval’ with a Total Project Cost of INR 34,288 crore and VGF of INR 5,639 crore since the inception of the scheme. VGF of INR 4,375 has been disbursed till the end of the financial year 2019-2020.

VGF Scheme is used to finance infrastructure projects. Not only infrastructure projects but almost all sectors of our economy also require funds to operate successfully. That’s why they seek the help of investment banks to raise funds effectively before launching their business. Are you considering a new business? Do you need funding? Drop a mail or fill-up the form below to get assistance right from the start.

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An investor is a person or an entity that invest capital that many startups need. Investors are always looking for a return on their investment in the future. For this purpose, they seek to know more than just a great business idea or solid business plan. That is, they need to see whether you have proof of concept behind your thoughts. They may be looking for a startup having a competitive advantage and significant market size since there is no guarantee that one can make returns from investment. Most types of investors research investment opportunities based on risk tolerance. There are basically 3 types of angel investors. They assist throughout the business plan by advising to manage funds precisely and attempt to create goodwill for the startup. It further attracts more investors to invest, thereby improving cash flow.

For the success and growth of a startup, it is crucial to maintain a strong and sustainable relationship with investors. As we all know, investors expect a financial reward in return. Hence, the preferred investment will decide which each individual falls into a specific category. There are three types of angel investors based on tactics and attitude towards investing. Such as;

1. Pre-Investors

Pre-Investors are those individuals who haven’t started investing. He may lack financial consciousness or awareness, which could change the direction of their lives. They are very little concerned about investing. Likewise, there’s little savings or investment to exhibit. “Consumption needs” rules the pre-investor financial world, which doesn’t prioritize savings and investment. These investors spend most of their entire income to cover monthly expenses with no money left for savings. However, it is possible to transform this mindset of pre-investor entirely during this stage.

Likewise, some individuals may prefer to invest after a change of perspective. But they wouldn’t have a retirement plan or capital to fall back on. In any case, the personnel department doesn’t have to arrange it for them. When pre-investors procure more income, they spend more since lifestyle is more prior than monetary security. A pre-investor should set time for themselves to gain knowledge about personal finance, current market situation, and competition to improve their caliber and take action as an investor.

2. Passive Investors

Passive investors are ready to leap into investing with low maintenance costs. It is the most common starting point for financial security, mainly supported by financial institutions, educational services, and websites. They often prefer to invest for an extended period and adopt a buy-and-hold strategy. Generally, They depend on experts like brokers, money managers, and financial planners for their investment strategy since they lack the required knowledge and skill. These types of investors usually buy and hold security (mutual fund, stock, real estate) at retail price for a more extended period with minimal trading in the market. Unlike active investors, since they ignore market fluctuations/setbacks, they may not expect profit from short-term gains. Index investing (Index ETF and index managed fund) is a typical example of passive investing.

The positive side of passive investors includes complete transparency over their investments. They know precisely where their cash is and can eliminate and reinvest it wherever they see fit. Furthermore, when concerned about its negative side, it requires regular savings contribution to achieve financial security and generate lower returns than other investors.

3. Active-Investors

An active investor is an investor who takes more hand-on-approach intending to earn higher returns. He may dedicate most of his time and effort to saving money. They need to focus on building active strategies that add value in return on capital, which is not an easier task to follow constantly. The main difference between passive and active investors is that passive investors aim to get market returns. In contrast, active investors aim to beat the market index.

One significant advantage of active investors is that they receive two sources of return on investment: “market-based” and “value-added returns”. Suppose they can accurately assess the market and gain from price fluctuations. In that case, they can profit and quickly make trades from active investing. Also, they continuously monitor market conditions to identify short-term trading opportunities. They used to engage active fund managers to oversee investment on their behalf. This type of investor requires deep knowledge about wealth management to earn a return on their capital and a high confidence level to make investment decisions properly. The downside includes higher transaction costs and the risk of generating higher returns by incurring passive investing. Active investment can be a good choice for investors who have substantial time and energy to learn the pros and cons of marketing strategies.

WHAT TYPE OF INVESTOR DO YOU WANT TO BE?

Every investor is unique, having a different investment style. The right choice depends on the investor’s personal preferences, risk tolerance, and financial goals. So, there is no single answer which will be suitable for everyone. The first step toward the investment journey is to set a clear strategy. For example, if you are interested in the stock market and desire to put your efforts into accessing your funds, you may consider active investing. Suppose you have enough years before retirement and working hard to increase your income without any interest in learning the ins and outs of the market. In that case, passive investing might be worth exploring. Pre-investor is the appropriate starting point for all individuals. They should take considerable time to learn about market conditions and personal finance options and step out from this stage to develop a vivid financial future. You can choose to be one of the three types of angel investors.
Any individual can become an investor with just a little money at hand. Many people pass through these stages of investing as their knowledge, experience, and skills develop. These three types of investors determine financial security and ways to advance your investment strategy to the next level. If you are confused about the right investment option – Sign up for a consultation with us. We are here to support you!

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Many startups lose new opportunities due to a lack of funding. So, they turn to banks and other financial institutions for fulfilling their financial needs. Collateral free loans (also known as Unsecured loans) are funding where loans are given without submitting any security/guarantee with the banks. These loans are given to applicants based on their income, creditworthiness, and business performance. The interest rate of such loans will be higher when compared to secured loans. Address proof, ID proof, age proof, passport size photo, signature, IT returns, income statement, bank statement, financial statements audited by CA are some of the documents required for getting unsecured startup loans.

Qualification for collateral-free loans:

  • The applicant should be age between 21 to 65 years.
  • Applicant should have a CIBIL score of 750 or more.
  • The business should be operational for at least two years.
  • The business’s annual income should be a minimum of INR 2 lakhs (turnover should not exceed INR 25 crore).
  • The applicant should be an Indian citizen with no criminal record or previous defaults from any financial institution.
  • The startup should have a feasible business plan, and innovative products should be provided.
  • The business should get approval from the Department of Industrial Policy and Promotion(DIPD).

Types of Collateral free loans for startups

1. Unsecured Term Loans:

Term loans are long-term loans availed for a specific time duration (generally 1-10 years) and are repaid in the form of EMIs. These loans are used for business expansion or growth, new product launch, purchase of machinery and equipment, construction of buildings, offices.

2. Unsecured Working capital loans:

As the term suggests, there is no need to pledge assets as security. Working capital loans are availed for a short period for meeting day today business expenses such as inventory financing, rent payment, salary to employees. The loan is repaid within one year of acquiring it.

3. Unsecured Line of Credit:

An unsecured line of credit is also known as a revolving line of credit. Banking and non-banking institutions offer only a predetermined amount of funds or funds up to a limit at higher interest rates (since lending funds without collateral security are riskier for the lender). However, as a startup, they may require quick and recurring funding, so business lines of credit can be the best startup loan without a collateral requirement. One major advantage is that startups don’t have to pay interest on the borrowed amount for the first 9-15 months. To get this loan approved, startups need to prove that they have good personal and business credit scores and revenue history.

4. Business Credit Cards:

Business credit cards are one of the cost-effective funding tools for startups. It provides short-term cash flow with credit limits. It helps earn rewards like cash back, preferred pricing, airline miles, and more like a personal credit card. Further, it helps to manage business finances through record-keeping. All you need is a good CIBIL score to access these cards. Some of the best available unsecured business credit cards include Capital One Spark Classic, Capital One Spark Miles, The Blue Business Plus, Chase Ink Business Cash.

5. Merchant cash advances:

Merchant cash advances are also known as Cash Advance Loans. It provides a lump sum of funds for your business growth in exchange for daily credit card/debit card sales. It is the most expensive unsecured startup loan in the market because it accepts businesses having poor or limited credit scores.

6. Equipment financing:

If you require expensive equipment for your startup, equipment financing will be a better option. Here the equipment bought at the time of starting the business acts as a security for the loan. Once the startup earns revenue, the customer can repay the amount either through lump sum or monthly instalments. In case of non-payment, lender can seize the equipment to recover his losses. Thus, Equipment financing helps you to set up and finance machinery/equipment purchases.

Unsecured loans under Government Schemes

1. Credit Guarantee Scheme:

Credit Guarantee Fund Trust For Micro and Small Enterprises headed this scheme. The government initiated this scheme to facilitate the flow of credit to MSEs engaged in manufacturing or service activities. Startup enterprises are majorly benefitted under this scheme. It allows startups to take loans at a reasonable rate of interest. The maximum limit of a loan is one crore, and the loan amount depends on the eligibility and viability of the business. The lending institutions include Commercial banks, Private and Public banks, Foreign banks, Regional Rural Banks, SBI, and its associated banks under NABARD.

2. Pradhan Mantri Mudra Yojana(PMMY):

This scheme was launched in 2015, and it is headed by MUDRA that stands for Micro Units Development and Refinance Agency. It grants funds to micro units and non-cooperative small business sectors. The interest rate varies from bank to bank, and there are no minimum loan amount criteria. This scheme is again classified into three categories:

  • Shishu scheme: This scheme is primarily for startups providing loans up to 50,000.
  • Kishor scheme: The loan offered ranges from 50,000 to 5 lakhs.
  • Tarun scheme: The loan offered ranges from 5 lakhs to 10 lakhs.

Both Kishor and Tarun schemes are designed for different business stages and funding needs.

3. Standup India Scheme:

This scheme provides grants to women entrepreneurs and people under the category of SC/ST. The loan amount ranges from 10 lakh to 1 crore and should be repaid within seven years.

4. Bank Credit Facilitation Scheme:

This scheme was headed by the National Small Industries Corporation(NSLC) to provide credit requirements of MSMEs units. The loan repayment tenure depends on the startup’s income, ranging from 5-7 years, and in some cases, it can be extended up to 11 years.

5. Coir Udyami Yojna:

This scheme is initiated by the Coir Board that aims to support coir units. It provides loans to project-based businesses with a flexible interest rate having a maximum period of 7 years. However, startups that have already assisted Government subsidy under any Indian or State Government scheme cannot benefit from this scheme.

Startups have a tougher time in obtaining funding. They seek unsecured loans from banks, financial institutions, and  Government as funding sources because they may have no or little assets to be pledged at the beginning stage. Are you a startup? Let us know about your funding sources. If you haven’t already, get started with Scaalex to take advantage of getting the best investors for funding.

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An investor contributes money to a business with the expectation of receiving a financial return. The main aim of any investor is to earn maximum profit with minimum risk. Most startups depend on investors to fund their startups. The investor’s fund will significantly support the company if the business introduces a new product or expands its operations. Investors help businesses get funded and ensure that the capital invested is correct and oriented towards either value or growth strategies. All investors are not the same; they may vary according to resources, capital styles, risk tolerance, and motivation. The investor’s quality and level of involvement determine the success or failure of a startup. So, it is necessary to understand different types of investors and learn how to choose the right one. Let’s take a quick look at the various categories of investors:

1. Personal investors:

Entrepreneurs could approach personal investors as a first resort as their family, friends, and close acquaintances. This type of investor supports startups or businesses to get off the ground. There is a limit on how much they can invest in your startup, so they might not give you much cash at once. They know and trust you the most, which is the best thing. However, you will require extensive documentation that outlines the rate of return, the amount of the investment, and ownership arrangements to assist you. Therefore, make sure to speak with a lawyer to avoid any potential obstacles.

2. Peer-to-peer lenders:

Peer-to-peer lenders are individuals or groups who provide capital to small businesses/startups through websites. Owners must apply with peer-to-peer lending companies like Prosper and Lending Club to get their desired money. Startups must create a business plan and share their financial forecasting, market research, and industry analysis. You may occasionally inquire as to how much money you have invested. Potential peer-to-peer investors will investigate the creditworthiness of the company. Once approved, the owner and the lender (a private individual) negotiate an interest rate for the investment. The lender then provides the funds to the owner.

3. Angel investors:

Angel investors are ex-founders who invest in startups or new entrepreneurs (also known as seed investors, private investors, business angels, or angel founders). Many people are familiar with them as the primary funding source and the most active type of investor. They could be wealthy business owners, executives, or business professionals. The best thing about angel investors is that they do not have to repay their funds if the business fails.

At the same time, investment is generally risky, and it should not exceed 10% of an angel investor’s portfolio or one out of every ten deals. An angel investor contributes funds in exchange for a higher rate of return (equity position and influence over management decisions). They are typically wealthy individuals who assist startups in their early stages of development and foster innovation to gain credibility and acceptance in their industry. They also provide advice to the businesses in which they invest. Through connections made by other startup founders, live pitch events, or direct online contact, you can get in touch with them. Before approaching angel investors, startups must ensure that their business is ready and has a plan.

4. Venture capitalist:

A venture capitalist (VC) is a person or company that invests in startups with long-term growth potential. Affluent investors and investment banks are examples of prominent venture capitalists or firms. They focus on growing businesses with solid business plans and high profits, so they expect some ownership and input into overall management decisions. VCs have relevant experience and connections to other investors and business leaders.

Startups may choose venture capitalists because they receive open funding as well as expert advice. They are not interested in high-risk start-ups that require a small amount of capital to get started. VCs invest in a large number of deals, say one out of every 100, whereas angels invest in one out of every ten sales. They conduct extensive due diligence on each investment, which can take up to 5 months. If you need a large cash infusion to get started, venture capitalists may be your best option.

5. Incubators and Accelerators:

Incubators are collaborative programmes that provide startups with access to funding opportunities, training, guidance, mentorship, and networks. Whereas, accelerators are program that help startups for rapid growth with financial support, training, mentorship, and networks.

6. Banks:

Startups seek the assistance of banks to cover their small business loans. Qualifying for a bank loan is challenging for early-stage startups and businesses. Banks typically request an overall business plan that includes a detailed description of the company’s product/service, financial and management projections, and strategies for goal implementation before deciding whether to provide funding in the form of a loan. You must demonstrate your financial stability. In addition to banks and other financial institutions, you should look into loans guaranteed by the Small Business Administration (SBA). SBA loan programmes include:

  • 7(a) loan: 7(a) loans meant for purchasing equipment, inventory, working capital, real estate purchasing.
  • Microloans: Microloans consist of a loan amount with a maximum of $50,000 for purchasing equipment, inventory, working capital. The real estate already purchased or debts already arise does not come under this category.
  • 504 loans: 504 loans are needed to expand the operations of startups say acquisition of fixed assets like land and building, real estate, modernization of existing facilities, debt refinancing.

Hopefully, you will be aware of the various types of investors available for startup funding. Every startup/company is distinct. As a result, selecting the correct type of investor is critical for your startup. Choose the best by assessing where your company stands and what is appropriate for you and your startup. Most startups fall short in this area. Worried? Don’t be! Get started with the assistance of our experts. We make sure that your new business gets off to a good start.

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Here is a look at the ways that private venture capitalists fund small businesses. Many private investors are willing to fund your business startup up to a certain point. However they will not provide ongoing funding unless there are certain criteria or performance indicators that have been met. This article will provide details on how you can present your business plan and case for VC funding.

As a small business owner it is important that you work with a seasoned entrepreneur who has the experience needed to evaluate and assess your business. Presenting your business plan in front of an experienced financing entity can be extremely intimidating. However, this should not discourage you. There are several sources online where you can get financial backing from a variety of angel investors. You also need to compile a list of prospective venture capital investors that you have spoken to. So you have some possible options should you need to raise additional funds.

While working with a venture capitalist can be helpful, you must remember that this is funding for your business. Do not expect to receive free money from a venture capital firm. You must have a highly compelling business plan that presents a solid case for obtaining VC funding. To get substantial amount of VC funding you must show that your business has ability to generate a significant income. Additionally, as a small business you may need to meet certain criteria before you are considered for venture capital funding.

Once you raised enough money you will need to raise additional funds to sustain operations and grow your business. You can do this by selling some of your assets, such as office furniture, advertising, and certain types of equipment. Depending upon your own personal circumstances, you may need to increase your personal credit limits to obtain a larger amount of financing for your business. You will also want to consider increasing your employee numbers. Having more employees can provide you with an opportunity to obtain a loan early on if you start your business with only a few employees. Your personal credit can also be improved by making your business more profitable.

If you are looking for a small business loan, your options will be much different than a large corporation. Because of small business regulations, most banks do not make loans to small businesses. Therefore, your best bet for obtaining financing will come through a private investor or other third party. In some circumstances, you can secure a small business loan from a bank if you can convince a bank that your business has a higher chance of being successful than a traditional small business. Addition, to this if your credit has been impressive to a bank or other institution, you may be able to get a line of credit that is based solely on your personal credit.

In some situations, you can obtain financing from the SBA even if your business is not considered a small business. For instance, if you are starting a gardening business you may have the option of applying for small business loans from the SBA even if it does not qualify as a small business. On the other hand, if you are starting an online business, you will almost definitely not qualify for small business loans from the SBA. This is due to the fact that there are a number of differences between an online business and a traditional business.

As previously mentioned, you can obtain small business loans from the SBA even if your business does not meet the definition of a small business. The way this works is that you will need to provide the lender with a business plan so that they can determine if you will be a good investment. Although this process can take some time, it will be worth it in the long run. In addition to providing the lender with a solid business plan, you will also want to prepare a financial proposal as well. This is a document that will show how you will use the funds that you receive for your business. You should definitely include a financial forecast because this will allow you to project the income that you will be able to generate in a year.

When you apply for financing from the SBA, you can expect to get an approval very quickly. You will probably receive a decision within one day and this will allow you to get back to focusing on getting your business up and running. However, even after you get approval, you may find that you are still not able to get enough money from your potential VCs. If this is the case, you should consider talking to several different venture capitalists to see what kind of financing they might be willing to provide.