Raising funds for your company could be a
herculean task, specifically if you’re startup firm as it is understood that
you may not have sufficient funds to address all financial expenses to push
your firm further. Moreover, banks are reluctant to offer loans being this
business risky for them.
The alternative is to get capital either from
borrowing money or from equity financing. Through equity financing you can sell
out the equity of your firm, in the form of stock shares, in exchange for money
that you can utilize to meet your business expenses.
Venture capital fund in India is a way of
seeking money from investors. Surprisingly this funding source is gaining more
and more popularity due to various related benefits:
You get Capital without Selling Any Equity
Venture capital companies in India funding are
similar to a debt that your company seeks. You are liable to pay for this debt
in whole including the interest. This funding option is beneficial for startup
companies who are in need of addition capital without selling off their stock
equities and also can enjoy the total control over the firm.
It Offers an Alternative Funding Option
Albeit, venture capital funding helps keep
your equity from selling, it can also fuse the two given your priorities and
requirements. For instance, you can also sell out your equity to reduce your risk
of loss, and can also opt for VC funding to get new equipment like computers or
any other equipment for your office.
It Offers More Funds to Expand
Business
It is the major and most obvious advantage of
acquiring funds from venture capital funding. This fund can be used for
expanding your business, buying new tools and equipment, enhance R & D, or any
other aspect of your business.
Synopsis
The above said advantages associated with VC
funding have made it popular option, especially for startups enterprises to opt
for. Remember, venture capital funding is just like the financing institution,
so make sure to work with those that have a proven track record and are associated
with the industry you’re in.
