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Raising funds and investments for a private limited company Introduction It won't be wrong to quote that Entrepreneurship is the new trend today. Every youngster aspires to be an entrepreneur today. Some trendsetter businessmen have influenced all the youngsters to be businessmen and work on their projects rather than working in the corporate sector. Everyone wants to build their own company and be their own boss. This trend is quite helpful as it is helping the country's growth. Before building a company, the most difficult task is to raise investments as you need to make the investors believe in you and that you will use their money wisely. Getting an investment is a hectic task. We have to work in a strategic way to raise some big investments. So if you are an aspiring entrepreneur and you don't have some efficient ways to dig out some big investments for your business, then this is a perfect guide for you just go through it wisely and it will help you a lot. What are the ways to raise investments for a Private Limited company? Listed below are the ways to raise investments for your Private Limited company -: 1. Using Bank finance: If you are not able to gather around some big investors to invest in your idea and you are not having the resources to work with, bank finance is the best option you have got, as you can get money from the bank at cheap loan rates. The bank takes the equivalent amount of goods for money security and then gives you the money you need. So this is an easy and fast option to work with if you are not able to arrange anything else. 2. Rolling out Sweat equity shares: Another smarter way of getting investment is by issuing sweat equity shares. Sweat equity shares refer to those shares which are issued for the company members themselves and they are given a stake in the company. So the people who are working for you are investing in your company. Sweat equity shares are issued for directors of the company, or the lead working management. This is a smarter way of getting investment as you don't need to bring any investors from outside and you don't have to pitch anyone for investments. 3. Providing equities to Angel investors: Angel investors are those people who have a lot of money that they have made from their successful businesses. These people are called angels for the businesses as they provide them with funding in exchange for equity in the company. These investors are really important for business owners as no one can give them such a big amount of investment. So whenever an organization needs urgent investments they look out for an angel investor. 4. Taking in Venture capitalists: Venture capitalists are those investors who invest in a company at that time when the company is a start-up and has not grown much. These investors help the business grow and train the entrepreneur. Venture capitalists are always important because every startup needs an investor who can help them in the starting phase and help them grow better. 5. Asking for help from Friends and Family: If nothing works in the end there is no one other than our family. So if you can't take bank finance and you are not able to find any investors too then friends and family are the ones whom you can seek help from as they won't disappoint you and help you no matter what. Conclusion Every business finds a source of investment and very rarely any businesses die out because of not getting an investment. So if you are not able to find a source of investment easily, just research it and find out who can help you good with investing in your business.

Business investments

How to raise funds and investments for private limited company