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Major Challenges of Startup Funding in India

• Every startup is built on an Idea, which either
  took the shape of innovative products and
  services. In the early stages, the majority of
  these startups looks for funding capital to
  transform their vision into reality. Funding
  plays a key role in the journey of startups.
  According to Startup Funding India, there are
  great examples of startups which attracted
  billions of dollars in funding, while others
  still remained a dream. Not every idea attracts
  venture capital for funding. As mentioned in
  Business News, new entrepreneurs face various
  challenges while seeking Funds in India.

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Best Business News
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Some of them are listed below

• Scalable Business Model
• A scalable business model is the backbone of any
  startup, which investors put a keen watch on. The
  measurability of the business model should
  include the profit potential with low
  expenditures in due course of time. According to
  Startup Funding India, If you are planning an
  expansion of your business and looking for loans
  or series of Venture Capital rounds, a scalable
  business model will keep you ahead in the track.
• As per the Business News, A scalable business
  model or idea usually has a higher margin of
  profit, with low infrastructural costs and
  marketing costs. The best way to minimize
  expenditures is to outsource the non-strategic
  aspect of your business plan.

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Determine how much funding you require

• If you do not have a proper well-written business
  plan, it is almost impossible to determine how
  you are going to spend your funds. According to
  Startup Funding India, It is essential to include
  a financial forecast in your business plan. A
  realistic financial forecast will determine the
  expected cost the investment will cover and the
  generation of revenue over a stipulated period of
  time. Business News, however, covers that,
  Investors expect to spend the funds to grow your
  business to the next level. No investor will like
  to see funds being wasted on un-necessary
  expenditure like pieces of furniture, interior
  designs, fancy items, etc. Therefore it is
  essential to be specific and concrete on the
  fundings you are seeking and your business should
  showcase consistent achievements.

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The Right Funding Option

• There are many options available for Startup
  Funding in India. To increase the better chances
  of funding, there are multiple alternatives
  available today. According to Business News, some
  of the options are as follows
• Bootstrapping
• Also known as self-funding. This involves
  borrowing of funds from friends and family.
  Bootstrapping is an attractive funding option as
  it is flexible and available quickly.

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The Right Funding Option

• Bank Loans
• Various Government-subsidized bank loans are
  available for Start Funding in India which are
  also considered as the most reliable funding
  option.
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• Angel Investment
• According to Business News, Angel investment is
  considered as a flexible investment option.
  Investors tend to invest a portion of money in
  return to equity in the startup.
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• Venture Capitalist
• They are professional investors who possess
  in-depth knowledge of the investment market and
  business scenario. Venture Capitalists invests
  major investment in upwards of 20 Lakhs.

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