Softbank slowing down investments and possible impact in India

• Self-funding, also known as bootstrapping, is an effective way of startup financing, especially when you are just starting your business. First-time entrepreneurs often have trouble getting funding without first showing some traction and a plan for potential success. Thus, they invest from their own savings or can get their family and friends to contribute
• Equity Financing-Raising funds equity means board with you as co-owner. This person shall contribute to business capital, share risk and participate in profit sharing.

• Angel Investors- These are the High Net worth Individuals(HNIs) who, if they have conviction in your product, will be willing to fund your venture in return for ownership equity or convertible debt. The capital angel may provide a one-time investment to help propel the business, or inject funds on an ongoing basis to support and carry the company through its difficult early stages. SEBI (Alternative Investment Funds) Regulations, 2012, as amended in 2013, regulates angel funds investing in an Indian company.
• Venture Capitalist/Private Equity-Venture Capitalists are companies/funds that raise funds from various sources and use the corpus to further fund startups. They are ready to invest in small businesses, funding young, unproven companies that appear to have a great idea and a great management team.
• Debt Financing-Loan from Banks & NBFCs-Banks and Non-Banking Financing Companies(NBFCs) grant loans and become business leaders and not owners, unlike VCs and angels.
• External Commercial Borrowings-Funds can also be obtained from non-resident lenders commonly called External Commercial Borrowings (ECB). The various forms in which ECSs can be procured are: These ECBs can be accessed under two routes, viz.,

(i) Automatic Route; and

(ii) Approval Route depending upon the category of the eligible borrower and   recognized lender, the amount of ECB availed, average maturity period and other applicable factors.

• CGTMSE Loans-The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Trust for Micro and Small Enterprises MSE) scheme to encourage entrepreneurs. Under the scheme, one can get loans of up to 1 crore without collateral or surety. Any new and existing micro and small enterprise can take the loan from all scheduled commercial banks and specified Regional Rural Banks, NSIC, NEDFi, and SIDBI, which have signed an agreement with the Credit Guarantee Trust.
• Venture Debt-It is a type of debt financing provided to venture-backed companies by specialized banks or non-bank lenders to fund working capital or capital expenses, such as purchasing equipment. Venture debt can complement venture capital and provide value to fast-growing companies and their investors. Unlike traditional bank lending, venture debt is available to startups and growth companies that do not have positive cash flows or significant assets to use as collateral.
• Business incubators (or “accelerators”)- generally focus on the high-tech sector by providing support for new businesses in various stages of development. However, there are also local economic development incubators, which are focused on areas such as job creation, revitalization and hosting and sharing services.

Commonly, incubators will invite future businesses and other fledgling companies to share their premises, as well as their administrative, logistical and technical resources. For example, an incubator might share the use of its laboratories so that a new business can develop and test its products more cheaply before beginning production.

• Government grants and loans
• Crowdfunding-is one of the newer ways of funding a startup that has been gaining a lot of popularity lately. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.

This is how crowdfunding works – An entrepreneur will put up a detailed description of his business on a crowdfunding platform. He will mention the goals of his business, plans for making a profit, how much funding he needs and for what reasons, etc. and then consumers can read about the business and give money if they like the idea. Those giving money will make online pledges with the promise of pre-buying the product or giving a donation. Anyone can contribute money toward helping a business that they really believe in.