‘Funding’ refers to the money required to start and run a business. It is a financial investment in a company for product development, manufacturing, expansion, sales and marketing, office spaces, and inventory.

Many startups choose to not raise funding from third parties and are funded by their founders only (to prevent debts and equity dilution). However, most startups do raise funding, especially as they grow larger and scale their operations. If you are an entrepreneur seeking to understand why funding is needed, types of funding available, and how to raise funding, then read on to find answers to these important questions.

For a better insight into the world of raising funds, below are the excerpts by Dr. Preet Deep Singh, Co-Lead Startup India, addressing some fundamental questions that a startup must know the answers to!