Nepalese Investor

How To Raise Funds For Business in Nepal ?

Raise Funds for your business
Raise Funds for your business

Starting and expanding a business often requires more than just a visionary idea and dedication. One of the critical ingredients for success of your business lies in securing the necessary funds. Whether you’re an aspiring entrepreneur or an experienced business owner, understanding how to raise capital for your startups effectively can make a difference.

A business raises funds to fuel its growth, whether in the form of expanding operations, launching new products, or entering untapped markets. Securing funds allows companies to invest in research and development, upgrade technology, and enhance their competitive edge. Additionally, fundraising can serve as a safety net for any unforeseen challenges within a constantly evolving business environment.

Raising funds for a business in Nepal, requires a strategic approach. Regardless of where you currently stand on your entrepreneurial journey, Here, we will guide you through the pathways to successful fundraising.

Strategies to Raise Funds For Business

1. Personal Finance

2. Family and Friends

3. Government Grants and Subsidies

4. Bank Loans

5. Angel Investors

6. Venture Capital

7. Initial Public Offerings (IPO)

Personal Finance

Using personal finance to fund your business means allocating money you’ve personally saved and accumulated over time for your entrepreneurial journey. This approach involves relying on the financial resources you’ve set aside through your saving, salary or sales of property.

Funding for your business personally, provides a level of financial independence giving you greater autonomy and control over your business decisions. Also, Entrepreneurs who fund their business personally signal to others that they have carefully evaluated the risks and are willing to take on a financial burden for the success of their venture.

Family and Friends

In the process of securing funds for your business in Nepal, one avenue worth exploring is seeking financial support from family and friends. This involves reaching out to individuals within your personal network for financial backing. You can consider it as a stepping stone that helps you establish a solid foundation, validate your business concept, and potentially attract additional funding from formal sources as business grows.

Government Grants and Subsidies

One of the best way to raise fund for your business can be through government grants and subsidies. These financial incentives are designed to support and stimulate economic activities, fostering entrepreneurship and business development. This can be especially beneficial for startups and small businesses looking to minimize their financial burdens in the initial stages.

Recently, Government of Nepal have announced to grant loans to startups at interest rate as low as 3 percent. You can also visit your nearby government offices to learn more about any government grants and subsidies that you qualify to apply for.

Bank Loans

Bank loans emerge as a traditional yet reliable option to secure fund for business. This involves borrowing a specific amount of money from a financial institution, usually a bank, with the commitment to repay the loan with interest over an agreed-upon period.

Banks offer various types of loans, each tailored to different business needs. For instance, you can see here various types of business loans offered by Nepal Bank, here.

Angel Investors

Angel investors are affluent individuals who provide capital for a business start-up or expansion in exchange for equity or convertible debt. When traditional funding options does not work for your business, turning to Angel Investors can be a game-changer. 

Angel investors typically invest in a business with innovative and unique ideas, high growth potential, scalable business with clear revenue models:

Venture Capital

Venture capital (VC) is a form of private equity financing that investors provide to startup and early-stage companies with high growth potential. It can be a crucial source of funding for your business. 

Venture capital is commonly directed towards early-stage startups with innovative ideas. They seek businesses with the potential to scale quickly and achieve substantial market share. If your business is in the initial stages but has a high growth trajectory, venture capital may be a suitable funding option.

Initial Public Offerings (IPO)

An Initial Public Offering (IPO) is like a big change for a company. It’s when a private company decides to become a public company by selling its shares to the public for the very first time. In Nepal, an IPO can be a strategic move for companies looking to raise substantial capital and increase their visibility in the market

Certainly, there are specific criteria that companies must meet to issue an Initial Public Offering (IPO) in Nepal. These criteria are typically set by regulatory bodies such as the Securities Board of Nepal (SEBON) and are designed to ensure transparency, protect investors, and maintain the integrity of the capital market. 


In conclusion, raising funds for your business is a way to grow your company and building your dreams. While the path to success in raising funds for our business may present various obstacles and challenges,  it’s crucial to remember that determination is the key.

Expect setbacks, anticipate hurdles, but let them fuel your resolve rather than dampen your spirits. By staying focused, adaptive, and committed to your goals, you can navigate through these challenges and emerge stronger on the other side.

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