Best fundraising platforms for non profits Funds are the lifeline for each and every business. Any business entity with seamless flow of funds can carry out its operations successfully without any break. Shortage of funds on the other hand hampers the growth of the business, making it eventually to shut down.
Not only funds are required for carrying the day to day operations of the business, also they are required for any new enterprise before starting up of any venture. In fact without sufficient arrangements of funds, one cannot even kick start the startup project. Startups also find it challenging to raise the funds for their project. It is because theirs being a new venture, many financial institutions are reluctant in providing the financial help to the startups. However, there are many fundraising platforms for startups, from which they can raise required amount for funds for their business venture. 1.
Crowd funding: It is new method of raising a startup fund and is growing to become popular. It is like taking a loan, pre-order, contribution or investments from more than one person at the same time. Here the startup entrepreneur puts up full description of the business in crowd funding platform and mentions goals and profit making plans. Consumers; who are satisfied with the plan and business will come forward to give money. Those giving money will make online pledges with the promise of pre-buying the product etc.
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Angel investment: These are the individuals with surplus cash and are interested to invest in upcoming startup ventures. They also work in group of networks to collectively screen the proposals before investing. Along with helping with finance, angel investors also offer expert mentoring and guidance to the startup owners.
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Venture capital: These are professionally managed funds; who invest in startup companies; that have huge potential. They make investments against equity. They also provide mentorship, expertise and acts as evaluate the business from sustainability and scalability view point.
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Incubators and accelerators: Startups can consider incubators and accelerators as best fundraising platforms. They are found in almost every country and city and are known to assist umpteen numbers of startups with funds every year. Incubator is like a parent to a child, nurturing the business b providing shelter tools and training and network to business. Accelerators are more or less the same but they help the startup business to take a giant leap.
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Funds by winning contexts: There are number of contexts on the roll, motivating the startups with good business ideas to enter the contexts and win funds for their venture. In such competition, the startups can either build the product or prepare a business plan. Winning the contexts also helps the startups to get media coverage.
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Raising money via loans from Banks and NBFCs: Startups can approach nationalize banks for raising money. These are most sought after fundraising platforms for startups. The startups have to share a business plan and valuation details along with project report; on the basis of which the loan is sanctioned. If the startups cannot qualify for bank loan, then NBFCs come to their rescue. With project reports and pledging of certain amount of property against the amount of loan required, the NBFCs grant loan to start ventures.