Startup Fund-Raising Platform
by engaging individuals, businesses, charitable foundations, or governmental agencies.
For Aspiring Entrepreneurs Who Pitch Their Business Models To Panel Of Investors To Raise Startups Seed Funding
For Investors Who Wants Good Returns By Investing In Startups Through Debt or Equity Funding
We Have Our Own Shark Tank India Platform
Why Funding is Required by Startups?
A startup might require funding for one, a few, or all of the following purposes. It is important that an entrepreneur is clear about why they are raising funds. Founders should have a detailed financial and business plan before they approach investors.
Prototype Creation
Product Development
Team Hiring
Working Capital
Legal & Consulting Services
Raw Material & Equipment
Licenses & Certifications
Marketing & Sales
Office Space & Admin Expenses
Stages of Startups and Source of Funding
There are multiple sources of funding available for startups. However, the source of funding should typically match the stage of operations of the startup. Please note that raising funds from external sources is a time-consuming process and can easily take over 6 months to convert.
Ideation
Validation
Early Traction
Scaling
Exit Option
Steps to Startup Fund Raising
The entrepreneur must be willing to put in the effort and have the patience that a successful fund-raising round requires. The fund-raising process can be broken down into the following steps
Assessing Need for Funding
Assessing Investment Readiness
Preparation of Pitchdeck
Investor Targeting
Due Diligence by Interested Investors
Term Sheet
The startup needs to assess why the funding is required, and the right amount to be raised. The startup should develop a milestone-based plan with clear timelines regarding what the startup wishes to do in the next 2, 4, and 10 years. A financial forecast is a carefully constructed projection of company development over a given time period, taking into consideration projected sales data, as well as market and economic indicators. The cost of Production, Prototype Development, Research, Manufacturing, etc should be planned well. Basis this, the startup can decide what the next round of investment will be for.
What do investors look for in startups?
Objective and Problem Solving
The offering of any startup should be differentiated to solve a unique customer problem or to meet specific customer needs. Ideas or products that are patented show high growth potential for investors.
Management & Team
The passion, experience, and skills of the founders as well as the management team to drive the company forward are equally crucial in addition to all the factors mentioned above.
Market Landscape
Market size, obtainable market share, product adoption rate, historical and forecasted market growth rates, macroeconomic drivers for the market your plans to target.
Scalability & Sustainability
Startups should showcase the potential to scale in the near future, along with a sustainable and stable business plan. They should also consider barriers to entry, imitation costs, growth rate, and expansion plans.
Customers & Suppliers
Clear identification of your buyers and suppliers. Consider customer relationships, stickiness to your product, vendor terms as well as existing vendors.
Competitive Analysis
A true picture of competition and other players in the market working on similar things should be highlighted. There can never be an apple-to-apple comparison but highlighting the service or product offerings of similar players in the industry is important. Conside...
Sales & Marketing
No matter how good your product or service may be, if it does not find any end-use, it is no good. Consider things like a sales forecast, targeted audiences, product mix, conversion and retention ratio, etc.
Financial Assessment
A detailed financial business model that showcases cash inflows over the years, investments required key milestones, break-even points, and growth rates. Assumptions used at this stage should be reasonable and clearly mentioned.
Exit Avenues
A startup showcasing potential future acquirers or alliance partners becomes a valuable decision parameter for the investor. Initial public offerings, acquisitions, subsequent rounds of funding are all examples of exit options.
Why do investors invest in startups?
Investors essentially buy a piece of the company with their investment. They are putting down capital, in exchange for equity: a portion of ownership in the startup and rights to its potential future profits. Investors form a partnership with the startups they choose to invest in – if the company turns a profit, investors make returns proportionate to their amount of equity in the startup; if the startup fails, the investors lose the money they’ve invested.
Investors realize their return on investment from startups through various means of exit. Ideally, the VC firm and the entrepreneur should discuss the various exit options at the beginning of investment negotiations. A well-performing, high-growth startup that also has excellent management and organizational processes is more likely of being exit-ready earlier than other startups. Venture Capital and Private Equity funds must exit all their investments before the end of the fund’s life.
Mergers and Acquisitions
The investor may decide to sell the portfolio company to another company in the market. In essence, it entails one company combining with another, either by acquiring it (or part of it) or by being acquired (in whole or in part).
IPO
Initial Public Offering is the first time that the stock of a private company is offered to the public. Issued by private companies seeking capital to expand. It is one of the most preferred methods by investors to exit a startup organization
Selling shares
Investors may sell their equity or shares to other venture capital or private equity firms.
Distressed Sale
Under financially stressed times for a startup company, the investors may decide to sell the business to another company or financial institution.
Buybacks
Founders of the startup may also buy back their shares from the fund/investors if they have liquid assets to make the purchase and wish to regain control of their company.
Event Agenda:
This Event Features a Panel Of Potential Investors Who Listen To Entrepreneurs Pitch Ideas For a Business Or Product They Wish To Develop.
These Self-Made Multi-Millionaires Judge The Business Concepts And Products Pitched And Then Decide Whether To Invest Their Own Money To Help Market And Mentor Each Contestant.
Step 1: Participant Register Their Startup Idea In Startup-Investors Summit
Step 2: SIS Panel Short Listed Great Potential Business Idea
Step 3: Participants Creates a Executive Summery & Pitch Deck Of Their Startups
Step 4: Investors Are Finalized For Upcoming Startup-Investors Summit Events
Step 5: Startup Founders Pitch Their Business Model To Panel Of Investors
Step 6: Founder Gets Funding If Investors Find Any Potential Deal To Invest