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  Fintech (Financial Technology) startups refer to startups that make use of technology to render financial services. Over the past few years, Nigeria has recorded a tremendous improvement in financial services, as these fintech startups make banking more efficient.
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Due to the value of fintech startups, many funding platforms and individuals are always ready to make investments. There is, indeed, a great future for fintech so people are taking advantage of it. This is a win-win for both parties since these fintech startups also have favourable access to funding to help their businesses.  In this article, I will be outlining four credible ways to raise funds for your fintech startup.

  • Get angel investors

Angel investors are individuals who give financial assistance to startups. One way to win their hearts and support is by building a valuable business model with potential. The good thing with angel investors is that added to the financial support, they also serve as pillars to ensure the startup grows to reach its potential. 
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  • Use the services of VCs

Venture Capitalists (VCs) are firms or institutions that fund a startup. Unlike in the case of angel investors who are individuals, VCs are corporate bodies that financially support startups. Just ensure that you have a concrete plan for your startup, as they will require such a level of organization in the funding process.

  • Get crowdfunding

This is the process of being funded by a large group of people. It is a pool of funds from different sources; individuals, NGOs and other firms. In this crowd funding process, you make your brand known by advertising your products and services. It is usually more productive if you already have traction.
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That is if you are already in business and making a name for yourself. Make a public announcement for funding. People will get to see it and those interested will invest in your business. It is oftentimes, the easiest way to secure angel investors.

  • Get Incubators/accelerators

As their names imply, incubators and accelerators help sustain and grow a business. They usually have access to the market, angel investors and connections to venture capitalists. In fact, they are a combination of the above three categories. In addition to their offer of financial support and contacts with other fundraisers, they also partner with businesses to ensure their growth.  Here are the four most common ways to raise funds for your startup. I also think they are the most effective ways. Do further research on each of them and know the one(s) that will best suit your business model. Featured Image Source:Startup Info
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This article was first published on 4th June 2022

chidiogo-akaelu

Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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