Do you have a unique idea and are you contemplating monetizing for a startup business? Fortunately, now it’s time for you as the Nepalese market is raw and untapped all geared for business. However, a careful analysis of all aspects is just as most of the new businesses fail to make a mark. One of the main reasons during startup business is the lack of funding as capital is the bloodline of any business. Therefore if you are in the dilemma of finding funding options, here is the comprehensive guide for a startup business:
1. Participate in startup meets:
Nepal entrepreneurial society organizes start-up meet every year where the best among the ideas is selected. It is an excellent platform to pitch in your idea to policymakers, diplomatic agencies, and investors. They aim to groom 10000 start-ups in 10 years. There are few other start-ups meets event of similar nature organized every year. Start-ups need to have a registered company and should have a market presence of 2-3 years. Therefore if you think your idea has the potential of being transformed into business for nation-building, start-up meet is the right place for you.
2. Subsidy from government:
The government of Nepal has announced seed capital for innovative start-ups with required skill, knowledge, and expertise. Ministry of Finance said it would grant 50% of the project cost up to the maximum of Rs.5 million to the selected innovators through open call procedures. You can apply to the call where a committee formed will evaluate your idea and select it within 30 days to fund seed capital.
3. Venture capital:
Are you looking for a team that will bring more than money onboard? Then venture capitalist is your go-to avenue. A venture capitalist invests in equity closely monitoring the business and exit through an IPO. However, if you are going to venture capital to be flexible for inputs and close monitoring. If you have a good team and traction you can go to venture capitalists currently existing in Nepal like Gurkha Development bank ltd, Vibhor Bikash Bank Ltd, CG ventures, etc.
4. Angel Investment:
Angel investors are high net-worth individuals having surplus funds seeking maximum return on their investment. They usually work individually or in a network to find out potential start-ups. Some of the angel investors currently working in Nepal are Marita Schultze, Deepak Khanal, Bishal Shrestha, Nikhil Sapkota, etc. However, they expect high returns due to risk involved and invest lesser quantum than a venture capitalists.
Bootstrapping means self-funding. This is one of the best ways to get started by investing your own saving or asking help from your family and friend. It is indispensable in most cases as you are less likely to get investment from the market in the initial stage as they want to see your traction, market presence, and potential success possibility. It is helpful as when you invest your money you are glued to the business. However, this option fits those businesses having small capital requirements. Therefore if your business fits bootstrapping, go for it as investors tend to consider it a good point.