As studies reveal, a majority of the companies fail during their first year of function. Unavailability of sufficient funds is one of the main reasons behind this. Money is the basic need of any business. In order to convert your ideas into reality, money is an absolute necessity. This is one of the reasons why most entrepreneurs wonder how they would finance their ventures at least at some point in their business journey. There are several options available such as business funding companies which provide full support to the businesses. Below is a discussion on the ways to fund your business.

Seek Angel Investment in your Startup

Angel investors are those who have sufficient assets and financial capability and are keen on investing in startups. There are groups among them for conducting a screening process for proposals. They offer advice apart from supporting the ventures financially.

Many global companies such as Yahoo, Google, and Alibaba were started with the help of Angel investors. This is a type of investing that happens during the initial stages of the company’s growth. The investors expect up to 30% of equity. They usually like to take up higher risk in investment required for higher returns.

Use Venture Capital for your Business

Venture capitals are professionally managed and have immense potential for large-scale investment. Generally, they invest against the equity when there is an acquisition or an IPO. Venture capitals offer mentorship and expertise too, as they help analyze the business strategies. Venture capital investments are a great option for small businesses that have crossed the startup phase and entered the phase of generating revenues.

Note that they have a short leash in relation to company loyalty and try to recover their input within a 5-year window. If you have a longer plan, it is wise to find investment from elsewhere.

Funding from Business Incubators & Accelerators

If your business is in the early stages, Incubator and Accelerator programs might offer a good investment deal for you. These are established in all major cities and they help fund hundreds of startups every year.

While Incubators help companies take their first few steps in their journey, Accelerators, as the name suggests, help companies speed up their operations and execute bigger plans. They usually operate for 4-8 months and ask the businesses for a time commitment.

Above are a few great ways to find funding for your startup or business regardless of the phase it is in.