5 Most Reliable Ways to Fund Your Online Business Startup

The pros and cons of bootstrapping, angel investment, competitions, incubators and venture capital.
5 Most Reliable Ways to Fund Your Online Business Startup
Nirav Parmar

Your dreams shouldn’t be stifled by money. Even if you’re facing funding obstacles, there are a plethora of ways to get your business off the ground. Entrepreneurs and investors tend to have high expectations for startups. Startups can be impacted by a few factors, though.

New businesses don’t perform well for a myriad of reasons within their first year. Startup success depends on how well you’re able to raise financing for the startup and the growth of the business.

To start a business, individuals have other options besides borrowing money from family or friends.

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Fundraising for startups is never easy, and sometimes it takes longer than expected. Unless you’re independently wealthy or have benevolent relatives who can provide funds, you’ll need to work to secure funding.

Here we’ll summarise some great ways for you to get funding for your startup or small business.

Promising Ways to Fund Your Startup

Source: Silicon Valley Bank

A startup’s funding is a crucial step in its development. Secondly, startup businesses fail due to a lack of funding, and any startup needs capital to stay afloat and thrive in the future. This raises the common question,

“How to fund my startup and what are the ways to do so?”

Make sure your business idea has an edge and adds value to people’s lives. Consider how aspiring entrepreneurs have invested in the online delivery market by launching a delivery application amid the pandemic because it is a trending need and helps customers get things done with ease. You need to conduct proper research and come up with unique ideas to obtain funds for your startup.

The following are some promising methods of funding startups; let’s discuss them in detail.

Bootstrapping (Self Funding)

With a self-funding model, you are the only one who funds your project, so it is one of the simplest and most popular options. Depending on your resources, you can use them to hire your first employees, market your business, and find a mentor or consultant who can help you navigate the business and provide you with useful advice.

The advantage of running a business in this way is that you wouldn’t have to worry about obtaining rounds of startup funding just to be sure to stay afloat. The drawback is that in the early stages of a project founders can get so excited that they overspend on personal accounts and can bankrupt themselves.

Keeping your limits in mind and staying reasonable are the keys to stay ahead in the game.


  • Greater focus
  • Easy pivoting
  • No delusion of your ownership


  • Time-consuming
  • Personal risk
  • Does not work for large businesses; it is the only feasible option for small and mid-scale enterprises.

Angel Investment

Have you ever heard of Angel investors or Angel investment? The concept of Angel investors is that they have extremely large amounts of capital and eagerly want to invest it in innovative business ideas. Angel investment can really make or break the next startup unicorn.

Sometimes Angel investors pool their resources to scrutinise investment proposals so that they can choose the best investment opportunity.


  • Angel investors offer additional advice and work as mentors for startups
  • Entrepreneurs should expect hefty returns on investment from Angel investors since they assume heavy risk-taking


  • As a comparison to Venture Capitalists, Angel investors invest less in business ideas.

Funding Competitions

You probably know about Shark Tank, seeing as you’re an entrepreneur in the modern world (or at least a business and finance enthusiast!). The show has garnered over $44 million in funding for its sponsors and inspiring other entrepreneurs to start their own ventures in its five seasons.

There are numerous contests sponsored by universities, technology companies, Angel investor networks, and others, which give new entrepreneurs the resources they need to succeed with their ideas. Find out about hundreds of business plan competitions worldwide at Biz Plan Competitions.

To learn how to qualify and participate in a giveaway contest near you, you can zoom in on contests near you.


  • Due to the excessive media coverage, your startup will get initial publicity.
  • Less risky


  • Those who lack the determination to start their own business might give up after losing competitions.

Business Incubators

Business incubators and accelerators provide resources for startups that are in the growth stage. In addition to offering marketing and technical resources, they provide management resources to various startups simultaneously.

Individuals who have business ideas and need help developing their products/services into commercially viable models and taking them to market can take advantage of these incubators.

To become a member of an incubator, you are required to apply formally and submit forms, which the incubator’s authorities will then evaluate according to their guidelines before being formally accepted as an incubator.


  • Fast-track business growth is possible as incubators offer some premium tips to startup owners
  • Establish a strong connection with other startups


  • An uncommitted startup could spiral downward within its first 4–8 months

Venture Capitalists

Venture capitalists are pretty different from Angel investors. VCs have adequate funds and money to invest in small, new, and emerging businesses that might flourish in the future. Venture capitalists search for companies whose idea is unique and want to ensure higher growth potential in a short amount of time.

Along with funds, venture capitalists also ask for a share of equity and directorship in a company to ultimately help startup owners to grow and thrive.

VCs are looking to make a profit on their investments, and many of them feel that having some control over the company’s management is the best way to do that.


  • Along with funds, startups also can leverage their expertise.
  • Uber and Flipkart, for example, reap huge profits as a result of their exit strategies, allowing them to re-invest in their businesses.


  • Loyalty issues in the long run
  • Owners tend to lose control of business

Initiate Your Startup Dream with These Funding Ways

The provision of funding is a difficult task, but it is essential to your startup, for which you must succeed — but, don’t worry. A good idea coupled with the ability to make it work or the ability to hire the right people will surely win the attention of investors. Before you begin the process, do your research and prepare well, and don’t expect results to happen immediately.

Rejections teach us what not to do next time. Good Luck!

About the Author

Nirav Parmar is an online marketer and blogger who has hands-on experience in crafting creative content. He prides himself in having the ability to write engaging content that attracts readers. His enthusiastic approach to researching the facts related to topics is phenomenal. He keeps up to date with all the latest trends in the delivery business, strategies to digitise SMEs, and changing market dynamics.