Raise Funds For Your Startup | DigiOwn - Sell and Buy Online Business

How to Get Startup Funding

Startup funding is the money a business uses to launch a new business or add a new inventory. Funds are an integral part of any business. Money is needed to hire employees, proceed with work, and add assets and essential resources to keep the business running. In the absence of funds, the business's working stagnates and becomes vulnerable to dissolution.

We can help your startup get the funds it needs by evaluating your business plan and connecting you with potential investors interested in startups. Our process of connecting you with investors is simple. You must fill in the form providing essential information about your business and the required funds. Our experts will get back to you for further enquiry to proceed in the fund-raising process.

How Startup Funding Works?

Securing funds for your startup can be challenging as it involves winning investors' trust in your business. The traditional methods for getting funds are complex. Many businesses even fail to qualify for bank loans. Every company has the potential to grow if they are provided funding support for their business plans.

Therefore, we initiated the DigiOwn startup funding program in which we help small businesses get the funds and support their growth. There are many ways to raise funds for your startup.

How much do you need?

Our experts will guide you in getting the desired loan. Someone from our team will reach out to you for further information regarding your business. The process is simple, starting with filling in basic details of your business. We will move forward to the final funding stage once we find a reliable investor for your startup.

How Startup Funding Works

If you have ever tried to raise funds for your startup, you may know how challenging it is to get funds for your business. Getting someone to put their hard-earned money in someone’s pocket is not easy. Although the option of traditional funding, that is, bank loans, is always there, we aim to raise funds through non-traditional methods to get the attention of more investors. These investors are online lenders and ventures.

The type of funding you choose for your business may or may not affect the ownership. For instance, some investors may ask for a certain percentage of equity and some control of your company under your ownership. The terms and conditions for each type of funding vary in terms of equity, ownership, and more.

Types of Startup Business Funding

1. Microlenders:

Microlenders are private and nonprofit lenders offering microloans to small or underserved businesses. Most of these businesses apply to microlenders as their business plan doesn’t qualify for loans from the bank. The terms and conditions of microloans are usually favorable. You can expect to build a good repo with them by consistently making payments. Microlenders are more likely to fund a business that is loyal in terms of paying back.

2. Online Lenders:

Online lenders are non-bank lenders. They provide instant loans with quick paperwork. You expect to get more time to pay the amount from online lenders as they are more flexible than microlenders. Fast and instant loan, however, comes with one drawback - high-interest rate. While you may have a limited amount to get a loan, you must pay good interest to online lenders.

3. Venture Capital:

Venture capitalists are mainly investment companies. They work to support growth-oriented businesses because of the risk involved. They don’t expect a return if a startup fails. But, they ask for a seat on the board of directors of any company they are financing. In short, venture capital takes risks, doesn’t expect a return, but seeks a seat on the board of directors.

4. Angel Investors:

Angel investors are individuals with strong financial backgrounds. They put money into any business that appeals to them. They don’t ask for monthly payments but seek partial ownership of the company they find interesting. Some angel investors, however, may not seek an active role, while some may ask for an active role in decision-making. In short, each angel investor may have their terms and conditions to put money into your business.

5. Crowdfunding:

Crowdfunding is used by all small businesses to raise funds through social networks and online campaigns. Businesses offer products, discounts, and coupons to incentivize donations.

Frequently Asked Question

Do I need a business plan to get funding?

Yes, most investors and lenders ask for a business plan that includes costs, products, services, and plans on how to use the products to get desired revenue.

What documents do I need to qualify for startup funding?

Business investors may ask you to provide basic company details and supporting documents such as business and personal tax returns, bank statements, and profit and loss statements. You may also have to furnish legal documents of your company.

Which type of funding is right for my business?

First, you must understand the different types of funding available and how much equity you are willing to share. Our experts can assist you in connecting with potential investors and deciding the proper funding for your company.

I want to invest in a startup.

If you are willing to invest in a small business, we encourage you to contact us (add a link to contact us), and our team will guide you on choosing the right business for funding.

Get Startup funding