How To Get Investment For Startup In India (2023)

Getting startup investment in India can be a daunting task, but with the right preparation and strategy, it is doable. An entrepreneur should take the time to do market research, create a detailed business plan, and fully understand his target audience before he starts looking for investors. Let’s take a closer look at how to get investment for startup in India.

How do I get funding for my startup?

Five sources to get funding for your startup.

Small business loans

Some banks offer loans specifically for small businesses, but banks have historically been cautious about lending to small businesses. It can be difficult to pass. However, there are alternative lending companies that can help get your business off the ground.

Crowdfunding

Crowdfunding is a good option if you have fresh ideas and are social media savvy.

When sites like Kickstarter and Indiegogo first launched, many companies successfully raised money through reach. It’s also very likely to overwhelm and anger your supporters, causing a lot of resentment even before your business is fully operational.

Self-Finance

40% of company founders are self-finance startups. Self-financing means independently providing the necessary funding for a startup. This means personal savings, starting a business on a long schedule, or running on a limited budget.

Friends and Family

Many startups start with funding from close friends and family.

Apply for Loans under Government Schemes

Government of India supports start-ups, SMEs, and MSMEs to boost the socio-economic growth of India’s rural areas, women entrepreneurs, educated youth, SC/ST category individuals, and Small and Medium Enterprises (SSIs).

Loan schemes initiated by the Government of India to support startups include MUDRA Loan Scheme under Pradhan Mantri Mudra Yojana (PMMY), Startup India, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Stand App India, Atal Innovation Mission, Make in India, Trade-related Entrepreneurship Assistance and Development (TREAD), etc.

How to get funds from government for startup businesses in India?

Government schemes to get funding for startup businesses in India:

ASPIRE – A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

Aiming to foster innovation for unmet social needs in the agribusiness sector and entrepreneurship, the program was launched to build a network of technology hubs and incubators across India. This provides financial support in the form of a one-off grant of 100% (100%) of the cost of machinery and equipment (excluding land and infrastructure) or up to INR 100 for the establishment of livelihood incubators and/or technology incubators. assist. (Indian Rupee 100) Lark, whichever is lower.

A large portion of India’s population still makes a living from agriculture, and the majority of the country’s population lives in rural areas. The program was launched to create jobs and set up companies in the agricultural sector. Equip entrepreneurs with the knowledge they need to start their businesses, become self-employed, and become an employer. The purpose of this program is to promote economic development at the district level.

Mudra Yojana Pradhan Mantri (PMMY)

The Micro Units Development Refinance Agency (MUDRA) Bank was established to improve credit facilities and facilitate the expansion of small businesses in rural areas. This program has been created by the government to support small and medium enterprises in India.

The government provided 10,000 crores in 2015 to support the local startup scene.

SMEs, unincorporated and non-agricultural enterprises are eligible for start-up loans of up to INR 100,000 from MUDRA Bank.

MUDRA is part of the Pradhan Mantri Mudra Yojana (PMMY) which was launched on 8th April 2015. Tarn, Kishore, and Shishu are credit categories. There is no collateral as the assets are created through bank financing.

Multiplier Grants Scheme (MGS)

This program encourages companies to partner with leading academic institutions and government R&D institutes to develop new products and packages.

This will improve relations between business and academia, accelerate the creation of domestic products, and bridge the gap between proof-of-concept and globalization.

Extra Mural Research or Core Research Grant (CRG)

Introduced over 40 years ago, it remains one of the most important and practical programs in the history of the Science and Engineering Research Board (“SERB”).

CRG’s goal is to support academic institutions, research institutes, and other R&D organizations in their research efforts in all frontier areas of technology and science.

Both established and emerging researchers are therefore motivated to pursue research funding through competitive people-centered models.

Startup India Seed Fund (SISF)

SISF’s purpose is to provide start-up companies with financial support for product development, market entry, product testing, and commercialization. The program is being proposed by the government as part of efforts to promote entrepreneurship in India.

This makes it easier for new start-ups to compete with India’s largest companies, creating an ideal environment for new ventures and investments. This will ensure a smooth start for new businesses and improve the employment situation across the country.

How to get funding for startups from Ratan Tata?

Want funding from Ratan Tata? Ask him directly. Nidhi Agarwal, the founder of Kaaryah, who had been turned down by 113 startups before receiving funding from Ratan Tata, proved that it is effective.

Three months after Nidhi`s initial email to him, Tata funded her startup.

Team members review the proposals after you approach them, and then they go to Tata, who typically only asks two questions of start-ups looking for investment. These deal with opportunities and risks. The founder usually gives him 30 minutes to pitch the idea after the Team head’s approval.

How do I find an angel investor?

Below are 3 ways to find an Angel Investor.

1. Talk to friends and family

The easiest way to find an investor is to ask a wealthy uncle or former college roommate who made a lot of money building a new kind of toilet.

Your ideas are likely to be receptive to people you already know and respect.

Losing money has strange psychological effects on people, so make sure you are willing to put your relationship at risk.

2. Network with Entrepreneurs

Attend college reunion events and network with local business people. This approach can lead to many failures. It’s a Cold call. But if you do, you can have a great long-term business partnership.

3. Use websites

The most popular angel investing websites are:

AngelList
SeedInvest
FundersClub

FAQ– How To Get Investment For Startup In India

How much money do you need to invest in startups in India?

You can start investing at Rs 50,000 and gradually increase your contribution over 10 years as your risk tolerance increases.

Wrapping Up

Success will come from creating a strong marketing campaigns that highlight the unique value your company brings to your customers. With the right approach about how to get investment for startup in india ,entrepreneurs can get the funding they need to make their dreams come true.

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