Starting a new business requires a lot of preparation. One of the preparation is to getting funding to kick-start your venture. It’s not an easy process as it takes a lot of efforts and to make it work. For those looking to get their business funded, here are 5 realistic suggestions on how and where you can obtain funding.
1. Government grants and loans
Ideally, government grants and loans seem to be the go-to choice for many local entrepreneurs seeking funding for their startup as it’s easy to apply. Some government loans do not require a guarantor or collateral, not to mention it has no profit rate and do not impose a processing fee.
So, if you’re an aspiring business owner, you can consider the following resources provided by the government:
- Yayasan Penjaja dan Peniaga Kecil 1Malaysia
- MyCreative Ventures
- Skim Pembangunan Francais
- Cradle Fund Sdn Bhd
- SME Bank
Besides government grants and loans, the other fastest way to reach out to people is through crowdfunding. Business owners can seek fund via small contributions by individuals. This method offers you the chance of finding funders and building a foundation for your business.
Here’s some of the most popular crowdfunding platforms in Malaysia:
- Ethis Ventures
3. Angel investors
Angel investor refers to a businessperson that provides financial backing to companies they think has the potential to prosper. In return, angels expect to share the financial rewards of the company they invest in. The advantage of getting an angel investor is they apply direct involvement – meaning, they bring relevant experience that could help you expand your business.
You can connect with several angel investors in Malaysia through these platforms:
- Angel Investment Network
- Cradle Fund
4. Venture capital
Venture capital has a similar system with an angel investor. It involves a third party who’s funding your business but, will act ass a partial owner of the company. Often, they have the majority shares of ownership.
These are a few venture capital companies in Malaysia and South East Asia to consider:
- RHL Ventures
- TBV Capital
- 500 Start-ups
- Vertex Ventures
- Spiral Ventures
5. Small business loans
If you’re looking for a different option besides all the options we have listed above, maybe you can consider getting a loan from a bank. But, make sure you have a good credit score. Most banks offer small business loans but, it will be based on your credit history, bank statements and other relevant financial information.