The e-commerce industry across the globe is proliferating and is estimated to reach $3.5 trillion by the beginning of 2020. This is also anticipated to attract startups in the e-commerce sector. All that a startup need is a winning strategy and a robust user interface (UI) coupled with user experience. However, funds are still one of the vital factors for e-commerce startups to fuel its future growth
Fremont, CA: The funds raised from the investors can either build or break an e-commerce startup. Moreover, the lack of funds is considered to be the second-largest factor, results in the failure of majority of the startups. Funds can be raised from the angel investor as well as from the bootstrap. Below are some of the ways of raising funds to fuel the growth of an e-commerce startup.
Most of the funding ventures ask for a proof of return, which can be much difficult for a startup company to produce. In such cases, bootstrapping is considered to be the best option. it is also found that more 77 percent of the startups begin with their own savings. One of the significant benefits of bootstrapping is, the entrepreneur does not have to give up any equity in the business.
• Private Lender:
The private lenders are considered to be another great way to raise funds. This is crucial because the private lenders to invest in the startups can remove a large amount of red tape. Upstart and Funding Circle are two dominant person to person funding platforms for the owner of the startups and private lenders.
• Crowd Funding:
E-commerce Startups can happily seek for crowd funding. This is beneficial when it comes to raise funds and creating brand awareness at the same time. This method helps in building capital investment for the startups to move and have a steady growth.
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