Prashant did his bachelor's from Christ University, Bangalore. After his graduation, he started his entrepreneurial journey with home furnishing products 'Decor India'

Over the last two decades, the start-up landscape in India has astonished the entire world with its dynamic evolution. With massive commercial potential, the fastest growing economy – India is the host of the developing markets. Aspiring entrepreneurs across the globe get attracted towards India's start-up industry as it offers a myriad of opportunities, attributed to its key growth drivers. These include a young and diverse population of 1.3 billion, technological advancements, changing political interests and increasing government support, growing interests of investors, and a new outlook towards entrepreneurship.

Despite such favorable aspects, reports suggest that 50 per cent of start-ups run out of the league within the first five years of their inception . And, a mere of one-third start-ups survive to make a decade-mark. Why?

To push start-up culture in the nation, the government has initiated various programs offering start-up capital to motivate aspiring entrepreneurs

The answer is – the dearth of funds. Having sufficient financial resources during the teething period of a start-up is inevitable. Indeed it is the survival of the fittest, and to survive in a highly competitive start-up landscape, budding entrepreneurs must learn to raise funds initially for your start-up idea.

Here we go:

Bootstrapping

An option valid for all!

Keeping the company bootstrapped as long as possible is indeed crucial for entrepreneurs as it offers complete control over business plans and profitability. The moment investors' funds pump in the operations, you not only lose the liberty to manage your business but accountability and pressure also multifold. On a contrary, outside funding, consequently restricts the growth and scalability of the business.

Crowdfunding
Internet and novel technology have reinvented the way people interact with each other by introducing interactive social platforms. The crowdfunding platform is one such concept – a common ground for aspiring entrepreneurs and investor communities where the former share their business pitch to attract the latter for investment.

A unique business prototype describing your business model/product is all you need to raise the crowdfunding. Multiple investors can invest a small token of money in a start-up through crowdfunding, allowing the entrepreneur to get started without obstacles. Filecoin, a decentralized data storage marketplace, is the classic example that managed to raise $257 million from 30 days of crowdfunding.

Look out for angel investment and venture capital
Angel investment can give flying wings to your business, and venture capitalists strengthen them with professional expertise. Both investors have enormous capital and willingness to invest in promising business ideas. Alongside financial support, they act as mentors guiding budding entrepreneurs to work strategically towards business sustainability and progress as they intend to gain a high ROI. Besides, Angel investors also reserve a seat in the company’s board of directors in return for their investment.

Participate, win, and earn
The fame-glam way to raise funds for your start-up is to participate in contests where entrepreneurs need to represent their business module comprehensively. The most creative, unusual, and progressive idea that interests investors wins the competition and gets funded. Participants gain media exposure and coverage that earn them popularity and an extra competitive-edge.

Go for business loans
Seeking a business loan is another quick and convenient way to access funds while maintaining your complete control of the business. Banks, NBFCs, microfinance, and Fintech players refer to your credit score and credit history to lend money in the form of a working capital loan, credit card, and funds. Entrepreneurs can fulfil their business requirements with the raised capital and repay the loan with interest within the given time.

Government initiatives for start-up investment
To push start-up culture in the nation, the government has initiated various programs offering start-up capital to motivate aspiring entrepreneurs. Projects such as 'Make in India' and 'Vocal for Local' are the best examples to cite. Submit an enriched business plan that firmly talks about innovation and development. Once the grant committee approves your idea, your start-up will be funded with ample capital by the government.

Take the decision and make it right

As we pen down several sources to raise funds, what remains the most important is making a conscious decision. Take a stand on purpose, and understand when and how to utilize your financial resources for maximum profitability. Being vigilant and adaptable to contemporary circumstances is the key to building a business that sustains any hardship just as the one we are dwelling in today – the COVID-19 outbreak.

As we are stepping into the post-pandemic crisis, the corporate industry has to restart everything amid the seismic economic repercussions. A bewildering situation, especially for start-ups is here as they need to reframe their business models to befit the new normal. Now is the time to determinedly opt for the most lucrative funding option. Most importantly, start-ups should reimagine the ways to survive in the post-pandemic world by investing their capital in the right direction.

Not slow and steady, but smart and agile will win the race today.