1
Startup finance refers to the initial infusion of money needed to turn a business idea into reality, as traditional loans and large lenders often avoid high-risk initial stages.
2
Crowdfunding involves raising small, voluntary amounts of money from a large number of individuals via the internet, similar to cultural donation drives ('chanda'). Popular Indian examples include Milaap, Ketto, Bitgiving, Wishberry, and Dreamwallets.
3
Angel Investors are high-net-worth individuals, entities, or trusts that provide one-time or early-stage funding to help startups get off the ground. Notable Indian angel investors include Rajan Anandan and Anupam Mittal.
4
Venture Capital involves pooled funds from individuals, banks, or institutions invested into early-stage risky startups in exchange for equity stakes or convertible debentures.
5
Venture capital funding occurs in multiple stages, including seed money, startup stage, first round, second round, and third round (also known as mezzanine financing).