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How did you fund your startup?

In the US it is quite common for a startup to get its 1st round of funding from SBA (small business association) or an overdraft of $100K from the neighbourhood bank. After that if cash flows can support you should be able to get more credit from the bank. Then there are Mezzanine funds which will give you convertible debt. Infact VC funding is considered very rare in the US.

In India most lending is asset based lending and not cash flow based, meaning you have to have some kind of asset such as a house inorder to raise any debt. Or you have to have parents and family that support you. But how does the average guy get started? There are some inspirational stories about how some did it and it would be great if we can hear them!

So how did you fund your startup?

  • blaze

    We registered our company in last july. before that we were working as freelancers. our area of work is in software and electronics(embedded) development.From the beginning itself we were funding from our own pocket. till now we spend around 3 lakhs. Now we registered our company as MSME and is moving through cgsti from SBI with help of an institution named CEED. Is there any significance for this 3 lakh figure in approaching SBI. and also please tell any strategical info about this cgsti.
    Thank you.

  • http://www.swemedbio.com suri

    you can go to cgtsi,banks will provide up to 50 lakhs,collateral-free credit to the SSI sector

  • Rita Parikh

    All,

    I am looking at approaching one of the Technology Business Incubators for my start-up. Could anyone please help me with anwers to these questions?

    1) What is your experience with TBI’s? What are the pros and cons of approaching a TBI?

    2) Which are some of the most popular TBIs in the country?

    3) What would be the typical pre-requisites for approaching a TBI?

    Rita