In the article Startup funding for small businesses in Vietnam, we knew the 2 best solutions to funding for small startups.
In real life, how many solutions that a startup can apply for funding throughout its development? Here are the answers to this.
Bootstrapping is the best solution for a startup in the first period of growth. Because at that time, the founders didn’t have any help from other people (maybe even family members and friends). That’s why they need to self-advocacy and run their businesses with their own money.
An example of this method is Big E Co., an agency about digital marketing in Ho Chi Minh City. During the first period of running the company (2019-2020), the founders used their savings money to establish and grow it.
Then the second period came when they signed a contract with the big instant noodle company named Indomie and many other contracts in 2020. At that time, they took the profit from these contracts to continue to grow the company.
The third period has come when they have tried to keep a high credit score so they can easily get a loan and continue to grow the company.
In the article Top 5 fintech investment platforms for VCs in Vietnam FinFan let you know about Crowdfunding (is like a platform for VCs can find out startups, in which they feel good and are ready to invest.
Crowdfunding is also a good way for small startups to when based on this platform, they can get investment from many different sources, and most importantly, score in the eyes of VCs.
An example of a crowdfunding solution is in 2012, founder Palmer Luckey launched a Kickstarter campaign to raise money to make virtual reality headsets designed for playing video games available to developers.
The fundraising campaign raised $2.4 million, nearly 10 times the original goal of $250,000. In March 2014, Facebook acquired Oculus VR for $2.3 billion in cash and stock.
A business incubator is a comprehensive business support model designed to facilitate the development of startups and newly established businesses.
In Vietnam, a business incubator is a comprehensive business support model designed to facilitate the development of startups and newly established businesses through the provision of shared services, training, financial support, equipment and workshops for businesses to develop.
Startups in Vietnam can get small business loans by banks or by state. They are discussed in the essay Startup funding for small businesses in Vietnam
*It is pretty difficult to determine how to find investors for startups in the initial stage of developing the plan or idea. The first click happens when an investor understands how to fund a startup based on the idea as a sole source of trust.
Once the idea stage is sorted, then comes the co-founder stage. An entrepreneur picks up a suitable business partner who has the necessary skills and is ready to work smartly and enthusiastically.
Then the company should be registered, and the angel investors or venture capitalists step in to fund the project. The investors perform various analyses before investing in the business. They also look forward to learning how to fund a startup before investing in it.*
For this above information, FinFan hopes that startups in Vietnam can find the best way to continue running and growing.
As a technology startup that develops in a bootstrapping way, FinFan is always trying every day to prove our capabilities and get more support from customers so that we can continue to realize our dream of becoming the best international NEOBank in Vietnam.