Easy Steps to Raise Capital Funding For Starting Small & Mid-Size Business The first thing you need to expand and grow your business is capital. No matter how much your savings are shining now, at one point of time you will definitely need more cash to materialize your expansion plans. Here are a few ways through which you can raise capital for seed funding or startup funding although these are two different stages. Through seed funding, you can carry out your research and development work while startup funding will allow your company to start its operations which is usually the second stage. Easy Steps to Raise Capital Funding • You’re Personal Savings This is the first thing you would probably try. If you have sufficient savings you can be your own investor. Investing 25% to 50% from your savings will actually help you easily convince other investors that the risk involved in the investment is worth taking. • Family and Friends To some extent your close relations may be able to fund your business although the fund is going to exhaust very soon. However, you can approach them to invest in your business provided they can afford to take certain amount of risk. • Employees You can also approach your employees to contribute in the growth and expansion of the company in exchange of an employee share ownership plan. The capital you raise won’t be enough but would still be of help to some extent for your expansion. • Bank Loans Loans from banks and other financial organizations are one of the traditional sources that you can try. Such loans come with fixed interest rates and a fixed maturity date. • Venture Capitalists Approaching the angel investors or venture capitalists is one of the best options as you can get access to the money that will actually help you expand your business and take it to the stage where it can earn huge profits. Once they have invested, they own a share of your equity in the company and are actively involved in all major decisions along with providing you with guidance at various stages. • Hedge Funds you can approach a hedge fund firm to invest in your startup provided you convince them that the investment is lucrative enough. These days, hedge funds are highly investing in tech startups and the managers are always in search of more and more opportunities to invest in. These are some of the popular ways you can try out to raise fund for your startup. Have you tried out any of these Feel free to share your experiences with us… For more information, feel free to visit our website at mergeralpha.com

1. Easy Steps to Raise Capital Funding For Starting Small &
Mid-Size Business
The first thing you need to expand and grow your business is capital. No matter
how much your savings are shining now, at one point of time you will definitely
need more cash to materialize your expansion plans. Here are a few ways through
which you can raise capital for seed funding or startup funding although these are
two different stages. Through seed funding, you can carry out your research and
development work while startup funding will allow your company to start its
operations which is usually the second stage.
Easy Steps to Raise Capital Funding:
• You’re Personal Savings
This is the first thing you would probably try. If you have sufficient savings you can be your own investor.
Investing 25% to 50% from your savings will actually help you easily convince other investors that the
risk involved in the investment is worth taking.
• Family and Friends
To some extent your close relations may be able to fund your business although the fund is going to
exhaust very soon. However, you can approach them to invest in your business provided they can afford
to take certain amount of risk.
• Employees
You can also approach your employees to contribute in the growth and expansion of the company in
exchange of an employee share ownership plan. The capital you raise won’t be enough but would still
be of help to some extent for your expansion.

2. • Bank Loans
Loans from banks and other financial organizations are one of the traditional sources that you can try.
Such loans come with fixed interest rates and a fixed maturity date.
• Venture Capitalists
Approaching the angel investors or venture capitalists is one of the best options as you can get access to
the money that will actually help you expand your business and take it to the stage where it can earn
huge profits. Once they have invested, they own a share of your equity in the company and are actively
involved in all major decisions along with providing you with guidance at various stages.
• Hedge Funds
You can approach a hedge fund firm to invest in your startup provided you convince them that the
investment is lucrative enough. These days, hedge funds are highly investing in tech startups and the
managers are always in search of more and more opportunities to invest in.
These are some of the popular ways you can try out to raise fund for
your startup. Have you tried out any of these Feel free to share your
experiences with us…
For more information, feel free to visit our website at
@mergeralpha
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