What is Fundraising?
Fundraising is the process of securing capital from investors to finance business growth, operations, or product development.
Table of Contents
Full Definition
Fundraising involves pitching to angel investors, venture capitalists, or other financial institutions to obtain the necessary funds.
Successful fundraising requires a compelling business plan, validated traction, and clear growth potential.
Funds raised can be used for scaling operations, marketing, hiring, or research and development.
Examples
Angel investors
Venture capital
Crowdfunding
Benefits
Provides growth capital
Enables market expansion
Builds investor networks
Common Mistakes
Can dilute ownership
Requires compliance and reporting
Conclusion
Fundraising is essential for startups aiming to accelerate growth and capture market share.