We occasionally come across terms like seed funding, early-stage funding, late-stage funding, and more. These terms are defined as the fundraised for initiating a new business that is termed as seed funding. The fund collected on the initial stage of business (mostly when the business models do not have the profitability) is considered to be the early-stage funding. And the fund that is raised at the crest of the business is said to be the late-stage funding.
People who are having brilliant ideas and want to launch their ideas by beginning a startup but are halted by the lack of capital in their projects. They can implement the idea of seeding funding. We can suppose the concept of seed funding as part of an analogy for planting a tree. This initial financial assistance is correctly the “seed” which will aid to grow the business.
Provided with suitable revenue and a profitable business strategy, along with it the diligence and commitment of investors, the company will eventually grow into a “tree.” Seed funding helps a startup to finance its first levels, which includes market research and product development. Using the advantage of seed funding a company has the support in finalizing its final products. Therefore, seed funding is utilized to employ a founding team to accomplish these tasks.
Prosperously raising funds for your startup is dependent on an impressive pitch. Having an effective sales pitch is the main element to prompt investors to fund your startup. To do this, you need to create your pitch presentation, you must obtain a thorough understanding of your business, products, and services.
It is an important factor for you to consider different types of investors accessible to pursue funding. You can compile a list of target investors that you want to approach. Venture capitalists are part of the private sector and are equipped for businesses that are quickly expanding, such as tech and medical companies. Venture capitalist firms usually play a more active role in startups.
Private equity organizations or individuals invest in startups or businesses by procuring shares for partial or total ownership in the firm. A private equity corporation can purchase out your public company, most importantly transforming it into a private business. A private equity association generally raises funds for investments through large third-party investors such as universities, charities, pension plans, or insurance companies.
Digital Platforms in Pakistan Which Can Offer Seed Fundings for Your Startup
At Seedout, you can fund directly to micro-entrepreneurs, helping us to alleviate poverty sustainably through creating jobs, raising entrepreneurs, and creating economic stability. With their innovative micro-franchising model and robust micro-funding platform, you can be sure your donation, zakat, or sadaqah will be delivered to the entrepreneurs of your choice, along with the training and guidance to get them off the ground.
Pakistan National Investor Portal
The National Investor Portal is a digital platform, which helps startups get access to the tools and expertise they require to pitch to investors to raise the capital required to scale their products and services. For investors, it provides a list of startups that are primed for growth and need angel, investor, and VC support.
Angel Investment Network
They provide an easily accessible digital platform to raise funds for individuals who are looking for investors with capital for their startup. Their mission is to democratize angel investment. They aim to help as many startup businesses as possible to raise investment.
Image Credits: Founder Institute
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