Sources of Startup Capital in India: An Empirical Study

Abstract

In recent years, India has become a center for entrepreneurs, with several new businesses springing up all over the place. Access to money is essential for these firms to survive and expand. Entrepreneurs frequently self-fund their start-up costs, but as their company expands, they need more money to develop and flourish. India has a variety of sources for startup money, from conventional investment approaches to newer and more creative techniques. The most usual sources of funding for companies are angel investors, venture capitalists, and private equity firms. Depending on the stage of development of the firm, these investors offer seed capital, initial funding, and growth-stage funding. In addition to conventional fundraising strategies, India has witnessed a rise in alternative startup finance sources like crowdsourcing, peer-to-peer lending, and incubators/accelerators. The Startup India initiative and the Atal Innovation Mission are only two of the programmes the Indian government has started to help companies. These programmes offer money, mentoring, and other forms of assistance to businesses all around India. Nevertheless, the Indian startup ecosystem is booming, and entrepreneurs can choose from a variety of funding choices depending on where they are in the startup process.