Crowdfunding for Startups in India

Crowdfunding sites in India are helping innovators launch ideas, social entrepreneurs bring social change and startups raise funds. Most startups, small enterprises, and individuals avoid complex methods of raising funds. Raising money through bank loans, venture capital, and angel investors involve complicated procedures.

Moreover, before raising money, startups have to take into account the different funding stages to decide the mode of raising funds. Social For Action Crowdfunding is a far easy and less complex model.

What is Crowdfunding for Startups?

Funding refers to the money required to start and run a business. It is a financial investment in a company for product development, manufacturing, expansion, sales and marketing, office spaces, and inventory. Many startups choose to not raise funding from third parties and are funded by their founders only (to prevent debts and equity dilution). However, most startups do raise funding, especially as they grow larger and scale their operations. This page shall be your virtual guide to Startup funding.

A startup might require funding for one, a few, or all of the following purposes. It is important that an entrepreneur is clear about why they are raising funds. Founders should have a detailed financial and business plan before they approach crowdfunding platform.

  • Prototype Creation
  • Product Development
  • Team Hiring
  • Working Capital
  • Legal & Consulting Services
  • Raw Material & Equipments
  • Licenses & Certifications
  • Marketing & Sales
  • Office Space / Admin Expenses

How Does Start Up Crowdfunding Works?

Steps to Startup Fund Raising on Social For Action

The entrepreneur must be willing to put in the effort and have the patience that a successful fund-raising round requires. The fund-raising process can be broken down into the following steps

  • Assessing Need for Funding
  • Assessing Investment Readiness
  • Preparation of Pitchdeck
  • Investor Targeting
  • Due Diligence by Interested Investors
  • Term Sheet

The startup needs to assess why the funding is required, and the right amount to be raised. The startup should develop a milestone-based plan with clear timelines regarding what the startup wishes to do in the next 2, 4, and 10 years. A financial forecast is a carefully constructed projection of company development over a given time period, taking into consideration projected sales data, as well as market and economic indicators. The cost of Production, Prototype Development, Research, Manufacturing, etc should be planned well. Basis this, the startup can decide what the next round of investment will be for.

Why Start Up Crowdfunding On Social for Action?

Social for Action is one of the few crowdfunding sites in India that completely focuses on small businesses and enterprises, Fundable features campaigns across business sectors in India. The platform features campaigns across business sectors.

From raising funds for affordable clinical diagnoses to intellectual travel experiences within India, entrepreneurs and businesses across sectors have used the platform. Among other sectors are banking, travel, food, and beverage, and fitness. A section ‘New and Noteworthy’ ensures that people who want to support can browse through the newest and most engaging campaigns.

Along with this Social For Action also focuses on startups, films, music, and technology, Social For Action is a platform for funding personal projects or enterprises and businesses. It is more than a crowdfunding platform as it offers options for campaigners to partner within our network of investors, incubators, accelerators, mentors, and for marketing, distribution and sales and community endorsements. This makes the platform, a comprehensive ecosystem for crowdfunding.

Social For Action Advantages:

  • Entrepreneurs have the freedom to innovate naturally in a domain of their choice.
  • Crowdfunding can be done successfully if the promoters have a good social media presence and a well large network of friends.
  • No requirement to give up any equity.
  • No requirement to have a repayment plan and/or interest payments.
  • Ability to attract a wide range of investors.
  • Also, serves as a marketing channel.
  • No minimum fundraise requirement.
  • Progress of a funding campaign can be easily tracked only.

Related FAQs

Q1. Can you crowdfund a startup?

Yes. Crowdfunding is an easy way to raise substantial amount of money for your startup through small contributions from a large number of people over the Internet. Using the power of Internet to reach out to future investors to put your startup on a growth trajectory in terms of capital and support.

Q2. How do I get crowdfunding on my startup?

As a small business owner, you might be looking for ideas of where to get capital from to take your business venture to the next level. After you have made a business plan, invested your own savings, and worked your business as a side hustle for a few months, it is time to raise some real capital.

  • Raise money for the tangible assets of your startup.
  • Pay To Work Policy
  • Ask donation for that great business idea and offer a position at your venture as a reward.
  • Grow Support
  • Form that network of family and friends through your fundraiser who believe in you.

Start your Fundraising Journey today on Social For Action!

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Q3. Why is Crowdfunding Good for Startups?

The phenomenon where people follow the examples of others in an attempt to reflect the best course of action in a situation. In a crowdfunding campaign, your early backers generate your social proof—once early adopters vet and buy into your idea, others are more likely to follow suit.

  • It’s more efficient than traditional fundraising
  • It’s a place to build traction, social, proof, and validation.
  • It’s an opportunity for crowdsourced brainstorming to refine your idea.
  • It gains you early adopters and loyal advocates.
  • It doubles as marketing and media exposure.

Start Your Startups Fundraiser Journey with SFA

Great ideas and startups need a boost with funding. And with the increasing number of crowdfunding campaigns for startups on Social For Action, founders and innovators have a range of options to choose from.

Want to start your journey to raise funds for your startups?

Click Here and Start your fundraiser journey with Social For Action, today!

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