Effective Ways To generate funding for your startup.

Funding is the one which acts as the last lifeline for a working person(doing startup), to which they rely on during their bad times. It is a method of generating funds but it has become a strategic or emergency exit for everyone if they suffer acute financial problems. Savings is the first thought that starts when you get your first job, as soon as a person steps into the job he or she divides a major portion towards their savings but does not have any plans on how to grow their savings.

Unfortunately, the 2020 pandemic has put the world to face its worst and experience the max capability to hold life in a cage. Most of them suffered badly due to financial problems which inverse the quote “rags to riches” to “riches to rags”. But there are few in the middle left to survive due to their previous successful actions and smartly invested their money in various forms to survive and grow their money without earning much.

Here are a few,

Effective Ways To generate funding for your startup.


Effective Ways To Make Long-Term Savings Using Lockdown

The word crowdfunding defines its characteristics in two ways; as the word crowd defines a large source of everything which has some individuality and funding defines the financial process that intakes small amounts from different businesses in the form of money that is owned by a large set of individuality. When people allow themselves to serve this fund they believe to have no faith or expectation that they will get some amount in return.

It is considered as a donation to support a particular cause, you can also allow funding these causes in exchange for not only money but you can also serve products, equity goods, services. Now, digitally many different sites host a process of crowdfunding efforts, which intakes different sets of rules that distinguish every website, individually they target businesses or persons who are willing to raise their funds to a particular entity. Crowdfunding is categorized in three ways-:

1. Reward-based crowdfunding, like people, raise their fund for which they receive some kind of reward in return.

2. Donation-Based Crowdfunding- like people fund their small resources from a large amount as a donation.

3. Peer-to-peer Crowdfunding- like people lend their money to different businesses online that intakes connection between borrower and lender.

Investment in Venture Capital

Effective Ways To Make Long-Term Savings Using Lockdown

The investment in a business that requires a capital amount in a form of private equity investment is said to be Investment in Venture Capital, this amount is often required by a business for initial setup. This type of investment is mostly required at the initial stage of the business and therefore, it can also be treated as a resource for an entrepreneur.

Venture Capital Stages

Later stage Capital

At this stage, a business starts to generate revenue; later-stage capital is invested before Initial Public OfferingIt is required during product improvements, to bridge the capital amount, mergers & acquisitions, major marketing campaigns, and for second stage expansions.

Early Stage Capital

It is done to provide support to initial business operations like – sales, manufacturing, marketing, and product development.

Seed Stage Capital

It is an investment done to support a productive idea designed by an entrepreneur but to establish it he or she requires a helping hand to make the idea come live in the real market world.

 Funding From Business Incubators & Accelerators

Effective Ways To Make Long-Term Savings Using Lockdown

Business Incubators is a setup as a company that is ready to help different new startups or companies in the development of their services like – managing office locations or spaces, training new peoples, sales, goods, and many more. They provide facilities to establish new business startups or firms to examine the real-world or help them in their early weeks, months, or years to stay and be a part of the market and explore. Incubators are different from technology or research fields as they only focus on the early stages of firms and companies.

Business Accelerators is basically defined as a set of a community that basically deals with the management of the different businesses. This program indulges with multiple mentorships and education that provides a facility of demo-day where many companies get a chance to pitch their management or idea of business communities that get compared with potential partners, investors, vendors, and consumers. Many new startups or existing startups take part in the acceleration process to gain a boost in their business operations, finances, and sales fields.

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Raise Funds By Winning Contests

Effective Ways To Make Long-Term Savings Using Lockdown

A business using this model for fundraising is considered a great move, this new concept builds fun between multiple users or new donors, and also provides exciting arrangements among existing donors. Different benefits take place worldwide or nationally that a business receives from this winning contest process. Most important is that you must decide on exciting and wonderful rewards that maintain enthusiasm among donors and make them confused or provoke to donate a healthy sum of money through this innovative model

This process allows you to engage multiple donors and attract new donors to raise funds and make you reach a different business that has great individuality and does not hesitate to take part in this contest based on a fundraiser, as it gives them a great experience to examine new concepts that will make you a potential participant to engage among multiple events to win a rewardful contest. On the social media platform, different contests take place to get an existence between various users who demand or wish to participate to get a chance in winning exciting offers.

Useful Business Tools: 7 Skyrocketing Sectors of the Indian Startup Ecosystem: Easy Growth

Govt Programs That Offer Startup Capital

Effective Ways To Make Long-Term Savings Using Lockdown

When we need to tackle with no income and still get savings with investment in our own startup; it is really tough to fund the idea along with generating some money to increase your bank balance. Gathering Govt. Funds help you to achieve both in an easy manner with accurate strategies to figure out the investment to profit ratios.

During the year 2014-2015, the Indian Government has launched approximately 10000 Crore Startup Fund under the Union Budget Scheme, to boost the entrepreneurs’ startups which directly tends to the growth of the Indian startup ecosystem.

An initial corpus with 20000 crores with the name of Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA) was launched by the government to provide benefits to more than 10 lakh startups. To gain an advantage from this scheme one needs to propose their plan and get approved for the loan; once approved you will be provided with a credit card (Mudra Card) to make your purchases for the startup investment. The funding is categorized into three parts- Tarun, Kishor, and Shishu.

Direct equity

Effective Ways To Make Long-Term Savings Using Lockdown

As we always know that every transaction in the world of finances is considered subject to risk. Different fund investors are allowed to have a discrete form of interest in, definite passive schemes because multiple people have a conversation about the strategy of passive form and allow to track various records of different passive schemes.

In the Direct Equity process, we presently invest in the equity shares of different business or company, that legally give you an opportunity to buy the ownership of that firm as shares; defined on basis of the total number of amount of company raises is equally divided in a small segment of fraction, which is presented in the value of rupees.

The process to buy as many shares as we want; we have to participate in business meetings and voice calls but the main reason why people are ready to buy those shares is to only set profit of dividend, which is defined as a reward to various investors. Ultimately the company gains profit on behalf of their invested money which should be divided with the company’s owner (investor). They also give you a facility to sell their existing share to a third party or give back to the company.

Bank fixed deposit

Effective Ways To Make Long-Term Savings Using Lockdown

Similar to an investor’s perspective that is offered from the banks or even from non-banking financial companies, Bank Fixed Deposit is considered as the safest and incremental growth for our savings. It is demonstrated as one of the top preferred avenues among all, which provides you with a healthy sum of the amount with different financiers, and also allows selecting tenure as per your demands.

Completing the first process of your defined tenure will get interests on your deposits on the given time duration and rate of interest. Once you fix the invested amount on a particular rate of interest for a given period, it always remains unaffected by any market fluctuations, and even no changes occur on a given rate of interest in the future.

It is confirmed that you set the amount in return after the given period as maturity. The only drawback you have is that you are not allowed to withdraw money before the given maturity period but if it’s urgent to withdraw, you may pay a penalty amount that charges an amount otherwise Bank Fixed Deposit is defined as a secured manner to save your money.


These are the ways from which an individual can generate funding and slowly grows their money to make a successful way to start again. So, the Effective Ways To generate funding will help you to succeed with your startup financially.

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