Week 10 : Design Entrepreneurial Fundraising Campaigns

In week 10 of Design it  lecture started  about sources of income for entrepreneurial innovations.which includes fund raising from business angels,crowd funding and giant providers.

I understood that fundraising is an important aspect in any business.Fund raising is a set of activities carried out in an organised manner for a specific time only to gain access to the set of resources.I learned how to introduce successful fund raising campaigns.


I was introduced to Bootstrapping which means starting a business without external help or capital. Such startups fund the development of their company through internal cash flow and are cautious with their expenses. Generally at the start of a venture, a small amount of money will be set aside for the bootstrap process.I learned examples of  bootstrapping methods.


                                                                       

fig 1: Examples of bootstrapping methods

I was thrilled  to learn about 3Fs .it  is the best for small investments but if we move for something big then other funding methods are required.I learned about the advantages and disadvantages of 3FS.3FS includes :

–Family

–Friends

–Fools

i learnt crowd funding which uses public or crowd to fund a project.I understood that it has also got advantages and disadvantages.Some examples of crowd funding are kickstarter,crowd funder and rocket hub etc.

Out of all the things learned,Business Angel was completely a new and interesting concept A Business Angel is an investor that provides development capital to growing companies or new companies. They usually want to be involved in the business in which they invest; either directly or as a mentor. Their investment is usually an equity investment rather than a loan to be repaid with interest.

It was good to study about Venture capital (VC) which is a type of private equity ,a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).