StartupTalky

Tag: Funding

  • A Complete Guide to How to Start a Business in California

    California is a state located on the west coast of the United States. It is the most populous state in the country, with a diverse and vibrant culture. California is known for its sunny weather, beautiful beaches, and mountain ranges. The state is home to many iconic landmarks, such as the Golden Gate Bridge in San Francisco, Hollywood in Los Angeles, and Yosemite National Park in the Sierra Nevada Mountains. California has a strong economy and is home to many leading technology and entertainment companies. It is also a major agricultural producer, with a variety of crops grown throughout the state. California has a diverse population, with a large Hispanic population and a significant Asian American and Pacific Islander population. The state is known for its progressive policies and has a long history of social and political activism. Overall, California is a unique and vibrant state with a rich history and culture.

    Starting a business in California can be an exciting and rewarding experience. With its diverse economy, skilled workforce, and supportive business environment, California is a great place to start a new venture. However, starting a business in California also comes with its own set of challenges, including high costs and a complex regulatory environment. California offers a number of resources to help entrepreneurs start and grow their businesses. These include business incubators and accelerators, venture capital firms, and business development organisations that provide training, mentorship, and other support.

    About California
    Business Environment
    The Famous Silicon Valley
    Benefits of Starting a Business in California
    Tips for Successfully Launching a Business in California
    Challenges in Starting a Business in California

    About California

    California is a state located on the west coast of the United States. It is the most populous state in the United States and the third largest by area. California is known for its diverse geography, which includes everything from mountains and forests to beaches and desert regions. The state is home to many national parks, including Yosemite National Park, Sequoia National Park, and Death Valley National Park.

    California is also home to a large and diverse population. The state is known for its vibrant culture and is home to many ethnicities, including Hispanic, Asian, and African American communities.

    Business Environment

    California has a diverse and dynamic business environment, with a wide range of industries and companies operating within the state. The state is home to many Fortune 500 companies and is a hub of innovation and entrepreneurship. One of the main strengths of the business environment in California is the state’s highly educated and skilled workforce. California is home to many top universities and research institutions, which produce a steady stream of highly educated professionals. The state also has a large number of immigrants, who bring diverse skills and cultural perspectives to the workforce.

    Newly-Funded Startup in California

    California is also home to a number of major industries, including technology, entertainment, and agriculture. Silicon Valley, located in the San Francisco Bay Area, is home to many of the world’s largest technology companies, including Google, Apple, and Facebook. The state is also home to Hollywood, the centre of the American film industry. California is also the leading producer of many agricultural products, including almonds, avocados, and grapes.

    Despite its many strengths, the business environment in California is not without its challenges. The state has a high cost of living, which can make it difficult for businesses to attract and retain employees. The state also has a complex regulatory environment, which can make it difficult for businesses to navigate. Additionally, California is prone to natural disasters, such as earthquakes and wildfires, which can disrupt business operations.

    Overall, California’s business environment is characterized by its diversity, innovation, and skilled workforce. Despite its challenges, the state remains a popular destination for businesses and entrepreneurs.

    The Famous Silicon Valley

    Silicon Valley is a region in the San Francisco Bay Area of California that is home to many of the world’s largest technology companies and start-ups. The region got its name in the 1970s when it was home to a number of semiconductor and computer technology companies. Today, Silicon Valley is known for its innovation and entrepreneurship, and it is home to many of the world’s most successful and influential technology companies, including Google, Apple, Facebook, and Intel.

    Silicon Valley is a hub of innovation and creativity, and it is home to a large number of technology incubators and accelerators, as well as venture capital firms that fund new technology ventures. The region is also home to a number of research institutions and universities, including Stanford University and the University of California, Berkeley, which produce a steady stream of highly educated professionals who contribute to the region’s dynamic and innovative business environment.

    California has a long history of supporting innovation and entrepreneurship, and Silicon Valley is a key driver of the state’s economy. The region is a major contributor to the state’s GDP and provides employment for a large number of people. Silicon Valley has also had a major impact on the global technology industry, and it continues to be a driving force behind many of the world’s most innovative and influential technology companies.

    Benefits of Starting a Business in California

    Diverse Economy

    California has a diverse and innovative economy, which can provide a range of opportunities for new businesses. The state is home to a wide variety of industries, including technology, entertainment and tourism, agriculture, and manufacturing.

    Access to Funding

    California is home to many venture capital firms and other sources of funding, which can make it easier for businesses to secure the funding they need to grow and succeed.

    Talent Pool

    California is home to many highly skilled and educated workers, which can make it easier for businesses to find the talent they need to succeed.

    Supportive Business Climate

    California has a supportive business climate, with a range of resources and support systems available to help businesses succeed.

    Tips for Successfully Launching a Business in California

    Starting a business in California can be an exciting and rewarding experience, but it can also be overwhelming for new entrepreneurs. Here are some tips for how to get your business up and running in California

    Choose a Business Structure

    The first step in starting a business in California is to decide on a business structure. Some common options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each type of business structure has its own advantages and disadvantages, so it’s important to choose the one that is right for your business. Choosing the right business structure is an important decision for any business, and it’s especially important in California due to the state’s complex legal and regulatory environment. The business structure you choose will determine how your business is taxed, how much liability you have, and how much control you have over your business. In California, the most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

    Different Industry’s Share in Market

    Choose a Business Name

    Next, you’ll need to choose a business name that is unique and reflects your brand. In California, you’ll need to register your business name with the Secretary of State’s office. The name of a business is important because it is one of the first things that potential customers and clients will notice about your company. A good business name can help to differentiate your business from competitors, establish your brand identity, and make it easier for customers to remember and recommend your business. A business name should be unique, memorable, and relevant to your business. It should also be easy to spell and pronounce, and should not be too similar to the names of other businesses in your industry. In addition, it’s important to make sure that the business name you choose is available to use, which means checking to see if the name is already in use by another business and whether it is available as a domain name for your website. When choosing a business name, it’s a good idea to consider the type of business you are starting, your target audience, and the image you want to project. You may also want to consider the potential for growth and expansion, as the name you choose should be able to grow with your business.

    Obtain All Necessary Licenses and Permits

    Depending on the type of business you’re starting, you may need to obtain various licenses and permits in order to operate legally in California. These can include sales tax permits, business licenses, and occupational licenses. Obtaining the necessary permits and licenses is an important step in starting and operating a business in California. These permits and licenses help to ensure that businesses in the state are operating legally and in compliance with relevant regulations.

    One of the first permits that businesses in California need to obtain is a business license. A business license is issued by the local government agency in the city or county where the business is located, and it allows the business to operate within the jurisdiction. Business licenses typically need to be renewed annually.

    Another common permit that businesses in California may need to obtain is a sales tax permit. If your business sells taxable goods or services in the state, you are required to collect and report sales tax on behalf of the state. This can be done by obtaining a sales tax permit from the California Department of Tax and Fee Administration (CDTFA).

    Professional licenses may also be required for businesses that provide professional services, such as legal or medical services. These licenses are issued by the appropriate regulatory board and are typically specific to the profession. In addition to these general permits, businesses in California may also need to obtain special permits or approvals for certain activities, such as selling alcohol, operating a food establishment, or operating heavy machinery. It’s important to research and obtains the necessary permits and licenses before starting your business in California. Failure to do so could result in fines and other legal consequences. You can use the California Business Navigator tool to help you determine the permits and licenses that your business needs. It’s also a good idea to consult with a lawyer or other business advisor to ensure that you are in compliance with all relevant regulations.

    Set up your business finances: You’ll need to set up a separate bank account for your business and obtain any necessary insurance. You’ll also need to decide on a pricing strategy and figure out how you’ll handle taxes.

    Create a Business Plan

    A business plan is a document that outlines your business’s goals, target market, and marketing and financial strategies. It’s a useful tool for securing funding and staying organised as you start your business. Launch your business: Once you’ve completed all the necessary steps, it’s time to launch your business. This might involve creating a website, opening a physical location, or starting to sell your products or services.

    Starting a business in California can be a complex process, so it’s a good idea to seek the advice of an attorney or business coach. Additionally, it can be helpful to connect with other business owners or join a business networking group to get support and guidance as you start your business. A business plan is a detailed document that outlines the goals, strategies, and action steps for starting and operating a business. It is a roadmap for your business and helps you to stay organized and focused as you work to grow and develop your company. To create a business plan, you’ll need to do the following

    Define your business: Start by clearly defining your business, including its purpose, target market, and the products or services you will offer.

    Conduct market research: Research your industry and target market to understand your competition and the needs and preferences of your customers.

    Set goals and objectives: Identify the specific goals and objectives you want to achieve with your business, and outline the steps you will take to reach them.

    Develop a marketing plan: Determine how you will promote and sell your products or services, including your target market, marketing channels, and budget.

    Create a financial plan: Establish your financial projections, including your start-up costs, revenue, expenses, and profit.

    Outline your operations: Describe how your business will be run on a day-to-day basis, including details on your management team, location, and logistics.

    Review and revise: Regularly review and revise your business plan as your business grows and changes.

    A business plan is a living document that should be updated and revised as your business evolves. It’s important to be thorough and include as much detail as possible, as your business plan will serve as a guide for your business and help you to stay focused and on track.

    Challenges in Starting a Business in California

    High cost of living: The cost of living in California is generally higher than in other parts of the country, which can make it more expensive to do business in the state.

    Complex regulatory environment

    California has a complex regulatory environment, which can make it challenging for businesses to navigate the requirements and compliance issues.

    Competition

    California is home to many established businesses, which can make it more competitive for new businesses to succeed.

    Taxes

    California has high state and local taxes, which can be a burden for businesses. Overall, while starting a business in California can be challenging, the state’s diverse economy, access to funding, talent pool, and the supportive business climate can provide many opportunities for businesses to succeed.

    Conclusion

    In conclusion, starting a business in California requires careful planning and a solid understanding of the legal and financial requirements of running a business in the state. By following the steps outlined above, you can set your business up for success and begin the exciting journey of entrepreneurship. Remember to seek the advice of professionals, such as attorneys and business coaches, and to connect with other business owners for support and guidance. With hard work and determination, you can turn your business idea into a thriving reality in California.

    Whether you are a seasoned entrepreneur or a newbie just starting out, it is important to do your research, seek advice from professionals, and be prepared to put in the hard work and dedication required to succeed. With the right mindset and approach, starting a business in California can be a rewarding and fulfilling experience.

    FAQ

    What is needed in California to open a business?

    • Choose a Business Idea
    • Decide on a Legal Structure
    • Choose a Business Name
    • Register Your Business Entity
    • Apply for California Licenses and Permits
    • Pick a Business Location and Check Zoning Regulations
    • Register and Report Taxes
    • Obtain Insurance

    Is California a good state to start a business?

    Yes, it has the highest number of businesses with fewer than five employees, the highest annual payroll for employees, and the best survival rate for entrepreneurs.

    Can a foreigner open a business in California?

    You can start a company in California as a foreigner in a variety of sectors but you will need to obtain a business license or permit first. Applying for and obtaining a business license basically means that you have permission to operate your business or transact in the state of California.

    Is it hard to start a business in California?

    Creating a California business of your own can be challenging. You will need adequate funding, time, personal support, and professional support in order to move forward successfully with your entrepreneurial dreams

  • Top 10 Successful Australian Startups

    Australia ranks among the leading countries for startups worldwide. With a score of 22.45, Australia ranks the 8th best country for startups in 2022. Its physical infrastructure, internal market dynamics, and commercial and legal infrastructure are favorable to the startup environment.

    Australia is known for its diversified and technologically advanced economy. Australia continues to encourage the development of several local startups nationally with an international launch. It is also considered one of the quickest countries in the world to start a business. Thus the startup ecosystem in Australia is now one of the fastest-growing globally, with the startup rate being one of the highest in the world.

    Venture Capital Fundraising in Australia from 2010 to 2022
    Venture Capital Fundraising in Australia from 2010 to 2022

    As of August 2022, the value of Australian-based venture capital funds was over $539.34 million and around $331.73 million in 2021. With an innovative approach, the startups have gained global market reach taking pride in their “Unicorn” status which is worth more than a billion US dollars. For a more elaborate view, let’s take a look at our favorite startups, piling up more information on each company and its counterparts.

    Judo Bank
    Canva
    Spaceship
    Uno
    99Designs
    Go1
    Lendi
    Power Ledger
    Assembly Payments
    Employment Hero

    Judo Bank

    Founders Alex Twigg, Chris Bayliss, David Hornery,
    Jacqui Colwell, Joseph Healy, Kate Keenan,
    Mal Hiscock, and Tim Alexander
    Founded in 2016
    Headquarters Melbourne, Australia
    Industry Financial services
    Total Funding 1.8 billion over 9 funding rounds
    Valuation $970.1 Mn (2022)

    Judo Bank Co-founders | Joseph Healy and David Hornery
    Judo Bank Co-founders | Joseph Healy and David Hornery

    Judo Bank is an online business bank backed by the SME Guarantee Scheme. With a team of dedicated officials, Judo Bank develops a trustworthy relationship with the proprietors and their SMEs. It provides financial assistance and business loans imperative for each SME. As business is all about striking while the iron is hot, Judo Bank helps SMEs to back their ideas with the funding they need.

    Canva

    Founders Melanie Perkins, Cliff Obrecht, and Cameron Adams
    Founded in 2013
    Headquarters Sydney, Australia
    Industry Graphic design Software
    Total Funding $572.6 million over 14 funding rounds
    Valuation $26 billion (2022)

    Canva Founders | Cliff Obrecht, Melanie Perkins, and Cameron Adams
    Canva Founders | Cliff Obrecht, Melanie Perkins, and Cameron Adams

    Canva is the world’s most inclusive graphic design tool that can be used to design and work more seamlessly. Be in logos, web pages, brochures, presentations, social media graphics, business cards, etc. Canva is the most productive digital creator. Available in over 130 languages and on any device, the users can start with one of Canva’s 250,000+ free templates and see where their creativity takes them.

    Spaceship

    Founder Kaushik Sen
    Founded in 2016
    Headquarters Sydney, Australia
    Industry Fund-investing platform
    Total Funding $54.58 million over 3 funding rounds
    Valuation $360.82 Mn (Jun 2022)

    Spaceship Founder Kaushik Sen with Paul Bennetts, Andrew Sellen, and Dave Kuhn
    Spaceship Founder Kaushik Sen with Paul Bennetts, Andrew Sellen, and Dave Kuhn

    Spaceship is a fund-investing platform designed to help the younger generations to invest in their future. Spaceship offers two portfolios to its customers-Origin and Universe.

    Origin is somewhat similar to an index ETF, however, it is not market cap weighted. It invests in 100 Australian and 100 International companies. The minimum fee is 5$. On the contrary, The Universe is more of an active fund. The investment philosophy is based on WWG’s “Where the World is going” principle.

    Companies are screened on factors like market cap, future growth potential, management, and even liquidity among other things. The minimum fee is 1$ P/A. With companies such as Amazon, Google, Facebook, and more. Spaceship guides the users to invest in a curated global portfolio.

    Uno

    Founder Vincent Turner
    Founded in 2016
    Headquarters Surry Hills, New South Wales, Australia
    Industry Financial Services
    Total Funding $36.86 million over 7 funding rounds
    Valuation –

    Uno Founder | Vincent Turner
    Uno Founder | Vincent Turner

    Uno is one of the world’s most authentic platforms that facilitates users with better financial decisions. The best part is that Uno offers online tools to compare loans so that the interest rate does not affect the cost of loans. Whether it is to buy real estate property or to avail of a new loan, Uno can assist with better guidance.

    99Designs

    Founder Mark Harbottle
    Founded in 2008
    Headquarters Melbourne, Australia
    Industry Design Services
    Total Funding $45 million over 4 funding rounds
    Valuation Acquired by Vista Prints for an undisclosed amount

    99designs Founder | Mark Harbottle
    99designs Founder | Mark Harbottle

    99designs is an online platform where you can find designers for clothing and merchandise, art and illustration, packing and labels, magazines, flat-out logos, etc. A bunch of logo designers will throw their hats on their rings and develop various designs based on the specifications you outlined.

    However, the whole idea is to have a plethora of options to choose from. The minimum price is $299. Besides collecting briefs from customers online, 99designs offers the services of its community of professional designers to deliver the client’s requirements at the earliest.

    Go1

    Founder & CEO Andrew Barnes
    Founded in 2015
    Headquarters Brisbane, Queensland, Australia
    Industry E-Learning Providers
    Total Funding $373.25 million over 10 funding rounds
    Valuation $2 Bn+ (2022)

    Go1 Founder & CEO | Andrew Barnes
    Go1 Founder & CEO | Andrew Barnes

    Go1 is one of the most dedicated platforms wherein companies get curated training courses from the world’s skilled training institutions for their employees. It is easily accessible and is one of the ruling eLearning library learning and education that has been famed across countries such as Australia, the United States, South Africa, Vietnam, the United Kingdom, and Malaysia.

    Lendi

    Founder Martin Lam
    Founded in 2016
    Headquarters Sydney, New South Wales, Australia
    Industry Financial Services
    Total Funding $57.38 million over 4 funding rounds
    Valuation –

    Lendi Founder | Martin Lam
    Lendi Founder | Martin Lam

    Lendi is one of the most reliable online platforms for home loans. Here, users are allowed to choose home loans freely from more than 25 major lenders. Facilitating the acquisition of houses and refinance loans, Lendi thereby negotiates better loans for its users and also empowers them through its online tools and a team of experts.

    Power Ledger

    Founders Dr. Jemma Green and John Bulich
    Founded in 2016
    Headquarters Perth, Western Australia, Australia
    Industry Software Development
    Total Funding $35 million over 2 funding rounds
    Valuation $57 Mn (2022)

    Power Ledger Founder | Dr. Jemma Green
    Power Ledger Founder | Dr. Jemma Green

    Power Ledger is a tech company that has developed a blockchain-enabled renewable energy trading platform. With market abilities, the company has built a series of products to enable energy trading, renewable asset financing, and moving efficient carbon and renewable carbon credits transactions.

    Assembly Payments

    Founder and CTO Simon Jones
    Founded in 2013
    Headquarters Victoria, Australia
    Industry Technology, Information, and the Internet
    Total Funding $12.25 million over 8 funding rounds
    Valuation –

    Assembly Payments Key People
    Assembly Payments Key People

    Assembly Payments is a complete payment gateway that helps businesses manage payment workflows and move funds without any delay. Perhaps it is the perfect way to capture credit cards without a lot of coding on the user’s side. However, Assembly is committed to going beyond excellence to deliver a highly secure system, that meets regulatory standards.

    Employment Hero

    Founder and CEO Ben Thompson
    Founded in 2014
    Headquarters Sydney, New South Wales, Australia
    Industry Human Resources Services
    Total Funding $290.93 million over 7 funding rounds
    Valuation $837.45 Mn(2022)

    Employment Hero Founder & CEO | Ben Thompson
    Employment Hero Founder & CEO |  Ben Thompson

    Employment Hero is the best HR software that Australia has to offer. With Employment Hero, SMEs can easily manage HR payroll, employee engagement, and benefits. Along with a team of experts, it has a wide range of products and services lining up for hassle-free compliance with minimum paper works and delivers better employee allowances.

    Conclusion

    The economy of Australia is growing by leaps and bounds with the technological advancements of its rising startups. While some are fast-moving for completion, others are balls against walls, however, predominantly focused to become the next market leaders.

    The series of startups focusing on and winning economic dynamism implies several industries and businesses, but the importance of tech startups is limpid, as enormous companies are either cloud-based platforms or software-based. From professional forums to Financial Technology and from e-commerce to Artificial Intelligence (AI), Australia is no easy feat.

    FAQs

    What industries are booming in Australia?

    Manufacturing Industry, Healthcare Industry, Energy Industry, Food Industry, and Technology Industry.

    How many startups fail in Australia?

    20% of businesses fail in their first year in Australia.

    What is the biggest industry in Australia?

    Consumer Goods Retailing in Australia is one of the biggest industries in Australia.

    Which country has the most startups?

    The United States has the most startups, i.e. more than 70,000 active startups. With a total score of 195.37, the US was by far the best country for startups in 2022.

    How many startups are there in Australia?

    There are over 1800 startups in Australia.

  • Misconceptions About Startup Funding |10 Most Common Misconceptions to Avoid

    Business success requires ambition, dedication and a lot of perseverance. The main ingredient, however, is money which ultimately makes a business sustainable. Funding a startup business is easier than people believe. This is mainly due to the many misconceptions that float around about what funding really means for a business and how it can be sourced. The reality is that what many entrepreneurs believe to be sound logic, may actually be harmful and hurtful to their businesses.

    Funding refers to the money required to start and run a business. It is a financial investment in a company for product development, manufacturing, expansion, sales & marketing, office spaces and inventory. It can come from a variety of sources and is used for a business from the ideation stage to a fully functional and profitable entity.

    How to Get Business Funding?

    Misconceptions About Getting Funding

    Misconceptions About Getting Funding

    Major Reasons for Startups' Failure Worldwide in 2021
    Major Reasons for Startups’ Failure Worldwide in 2021

    Depending on Existing Network

    While the existing network of friends and family and a few professional connects might be enough to raise the initial seed capital to launch a business, it is by no means enough once the business gets off the ground and begins to grow. Fundraising is an enormous undertaking and an entrepreneur needs as many connections with investors as possible. It is important, therefore, to invest in networking to expand the connection pool.

    Not Investing in Creating Professional Marketing Collateral

    Investors receive thousands of unsolicited business plans annually, requesting funding. A company looking to interest investors in a round of funding must effectively and succinctly be able to convey the value that sets the business apart through thoughtfully conceived marketing material. A business requires an attractive marketing campaign to receive good investors.

    Underestimating the Timeline of the Funding

    The process of finding the right investors and going through the due diligence process can take up to a year or even more. Hence, an entrepreneur looking for funding must take into account at least 12 months before the funding goals are fulfilled. This requires diligent planning of business operations.

    Focusing Exclusively on Partnering

    The funding route may make it necessary to offer equity in the business to investors. New entrepreneurs wrongly assume this move to be an effort of a takeover. This makes them defensive and offer only an asset partnership to investors. This is a counter-intuitive move as it limits the number of investors to receive funding.

    10+ Ways You can Raise Funding Without Losing Equity
    A comprehensive guide that lists 10 funding options for startups that will help you raise funding without losing equity.
    StartupTalkyShubham Kumar

    Need for More Data

    The first thing to do with investors is to open a line of communication. Hence, ‘when’ becomes more important than ‘what’ to say. It is prudent to arrive at the crux of the issue as soon as possible. If the investors need to see more data, they will ask for it. It is necessary, at the foremost, to show them the product or service that requires funding.

    Being in Stealth Mode

    The fear that the idea can be stolen can prevent the business from showcasing the invention in the first place. To grab the interest of the investors, the product needs to be showcased to highlight the value proposition in investing in the business.

    In Due Diligence With a Venture Capitalist

    Fundraising is a numbers game and most companies fail the due diligence processes and do not succeed in procuring funding. This is hardly the reason, though, to stop looking for investors or give up. This should, in fact, lead to double efforts towards funding.

    Exclusive Focus on One Category of Investor

    It isn’t wise to be selective before having options. The entrepreneur must scour the market, understand all the options for fundraising and cast a wide net to attract investors.

    Not Interested in Speaking With the Associate-Level Staff

    The associate-level staff are, essentially, the gatekeepers of the industry. It is wise to understand that most executives act based on the reports of the associate-level staff. It is in the entrepreneur’s interest to keep up a good relationship and healthy communication with them as they could be the pathway for the funding.

    Issues Around Focus and Organisation

    The process of fundraising is overwhelming. Colour-coded spreadsheets aren’t enough to organise and present all the information. The business would be wise to invest a small sum in the right cloud infrastructure to drive its campaign.  

    Entrepreneurial skills to impress an investor
    Aspiring entrepreneurs stuggle to attract investors to fund their startup. Here are some of the entrepreneurial skills to impress an investor.
    StartupTalkyBharath

    Depending on Banks to Avoid Diluting Equity

    While it is true that banks are great non-equity partners, they rarely take the risk of investing with a startup without collateral or personal guarantee. They have very strict covenants with a monthly payment guarantee.

    Conclusion

    Contrary to popular perception, receiving funding for the business is not a nerve-racking experience. It does, however, call for the entrepreneur to thoroughly evaluate the various sources of funding to reach the right decision. Eventually, the goal of the business is not merely to raise funds. It is about utilising those funds to the maximum effect that causes the business to grow and turn profitable.

    FAQs

    What percentage of venture capital investments fail?

    It is estimated that around 25-30% of venture capital investments fail, as per the National Venture Capital Association.

    What are the reasons for startups’ failure?

    There are various reasons that lead to the failure of startups. Some prominent reasons include wrong partnerships, inability to raise funds at the right time, unprofitable marketing efforts, lack of research, etc.

    What are some misconceptions about getting funding?

    Some of the basic misconceptions about getting funding are:

    • Depending on the existing network
    • Focusing on one category of investors
    • Depending on banks
    • Underestimating the timeline of funding
    • Being in stealth mode

  • The Business Model Of MapmyIndia | Funding, Marketshare and More

    MapmyIndia is known to be one of India’s most comprehensive GPS navigation and tracking solutions providers, which engages the users on multiple platforms. The New Delhi-based company first started its venture online as C.E Infosystems back in 1995 and eventually migrated into consumer navigation devices, fleet-tracking solutions for taxi and trucking companies, and mobile apps. Today, the company offers an entire API stack, IOT devices, and a map app and is also a strong competitor to the global giant Google’s mapping app.

    The company has so far mapped over 10.54 million unique destinations, expanded its coverage to over 6.29 million kilometers of the road network, 7068+ cities at street level along with address level for 80+ cities. It also covers 600K+ villages and 3D and 2D landmarks in 86+ different cities. It has so far recorded 18+ million places. Not only that the company has also divulged into offering a variety of different services. It offers services like navigation functionality, tracking and telematics, and location-based analytics.

    MapmyIndia has its own API stack through which the company aids developers who are looking to build interesting and unique apps powered by a geo-locational element such as OLX, Flipkart, and smart parking systems. The company now has 5,000 enterprise customers. It also claims to have captured an 80% market share in revenue in the location intelligence space.

    It has more than 2,000 customers on its SaaS platforms, which are used for fleet management, location analytics, etc. among other things, made possible because of the successful business model that MaymyIndia brandishes. Other smaller players that compete with MaymyIndia in the IoT-powered GPS devices segment include Asset Tracker, TrakNTell, and CaRPM.

    MapmyIndia – A Brief History about MapmyIndia
    MapmyIndia – Products and Services the Company Offers
    MapmyIndia – Business Model
    MapmyIndia – Revenue and Financials
    MapmyIndia – Market Share and Funding of MapmyIndia

    How MapmyIndia works

    MapmyIndia – A Brief History about MapmyIndia

    Rakesh and Rashmi Verma, The founders of MapmyIndia
    Rakesh Verma and Rashmi Verma, The founders of MapmyIndia

    MapmyIndia is an Indian technology company that builds digital map data, telematics services, location-based SAAS, and GIS AI services. The company has its headquarters in New Delhi, regional offices in Mumbai and Bengaluru, and an international office in the San Francisco Bay Area. MapmyIndia was founded in the year 1992 by Rakesh Verma and Rashmi Verma. The company had its humble beginning when the couple launched a startup called C E Info Systems Pvt. Ltd. in New Delhi.

    The company initially started working upon developing a web mapping technology and providing products and services required for enhancing marketing and logistics efficiency in the existing organizations in the country. MapmyIndia launched the first Indian interactive digital mapping portal in 2004, which provided free, customized, location-based services.

    In 2010, MapmyIndia launched a GPS navigation service called Road Pilot, preloaded with Indian cities, villages and destinations and destinations. As of 2018, it has 5000 plus enterprises customers and over 250 million consumers benefit directly and indirectly from its services. MapmyIndia has also expanded to countries like Sri Lanka, Bangladesh, Bhutan, and Nepal and soon plans to release maps for the different parts of the world.

    During the trying times of the pandemic, the company launched a Covid19 dashboard that mapped containment zones and Covid19 testing and treatment centers across India in real-time and made it available for millions of users free of cost. This immediate move benefitted many users needing this information, whereas Google was slow to respond and released it many months later. It also won the Government of India’s Atmanirbhar App Challenge for its consumer app.

    In December 2021, MapmyIndia parent company, the valuation or the market capitalization of the company currently stood at over $1.03 Bn.

    MapmyIndia – Products and Services the Company Offers

    MapmyIndia is well known for its services like Navigation, Tracking, IoT, Analytics, and web mapping service for desktop and mobile devices. The company also offers advanced GPS tracking devices, car in-dash infotainment, and plug and play on-board diagnostics, car trackers. The navigation service features street-view, public transit information, and turn-by-turn navigation with spoken instructions for vehicles. The main services that the company offers are:

    • Professionally curated and continuously updated detailed maps that offer unmatched coverage – These maps enable web and mobile applications, with the most granular house-level building data, live traffic, location-based demographics, and socio-economic data.
    • Real-time data visualization and big data analytics to make more informed decisions – Maps provide a visual context that helps customers to increase productivity, involving location like site selection & resource allocation that helps with efficient business growth.
    • Smart mobility platform for sale, convenient and efficient mobility – The company is focused on building technology platforms for connected vehicles and travelers paving the road for autonomous multi-modal and safe mobility.
    • Connected Vehicle IoT ensures the safety and security of vehicles, people, and assets – The company also believes in providing a secure, intelligent, and modular location-based IoT platform, providing accurate and reliable maps with live traffic, road conditions, safety alerts, driving patterns, and other travel services.

    MapmyIndia Launched Panoramic Street View Experience

    MapmyIndia announced the launch of a panoramic, street view feature, which will be similar to the panoramic, three-dimensional experience of Google Street View. This technology, which is refered to as Mappls RealView, will help the users explore the cities of India almost as Google offers. Currently, Mappls RealView covers metropolitan areas and cities including Bengaluru, Delhi NCR, Greater Mumbai, Chennai, Pune, Hyderabad, and Jaipur. Besides, it also covers nearly 100,000 kms of highways, which links these cities and towns. The repository of Mappls RealView currently consists of 40+ Cr geo-tagged panoramas, videos, and panoramas, as of July 28, 2022.

    A metaverse-like experience has also been launched by MapmyIndia, via Mappls. This now features numerous tourists, commercial and residential landmarks and more, across India. In order to create a 3D experience, the listed startup has revealed that it uses satellite imagery data from the Indian Space Research Organisation (ISRO).

    MapmyIndia – eLoc: Electronic location as a key to Digital Address

    MapmyIndia has presented eLoc (electronic Location) as the country’s key to digital addresses. eLoc by MapmyIndia helps in finding the electronic location of any place, be it a building, flat, office, business, city, village, locality, road, and so on, is a short, 6 character code (for e.g. 8GDTYX, or MMI000). This is easy to remember, share, type, and provide. eLoc claims to provide a comprehensive, accurate, and precise door-step level, 3D digital map database, and turn by turn navigation solution.

    eLoc is essential when a person, business, or official searches for a place by entering the code. They can see the precise map location of the place beside its location, such as reviews, photos other information provided by the place’s owner, businesses, and government. MapmyIndia updates its digital database every quarter and takes into account the feedback of the enterprise’s customers, individual users, on-ground staff, and its own surveyors as well.

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    MapmyIndia – Business Model

    When Rakesh and Rashmi Verma first started out to build their own startup they were determined to do something for the country and thus, decided to make it their life’s goal to build the country’s first digital map based on a database of India. This was a difficult task in the beginning because India is known to be vast and with varied geographical and topographical diversities. This is why they decided to make their own database, “Top Down and Bottoms Up”.

    The Top Down system included that the company digitally traced whatever paper maps were available using tablets and other IT and electronics devices. On the other hand, the Bottom Up was meant to survey different parts of the country. The team of MapmyIndia played an important role in surveys as they had to practically walk down the streets and by-lanes of the country and also conduct field surveys.

    The company has a customer-funded business model and has had popular companies like Coca-Cola, Marico, Hindustan Unilever, and the Indian defense service as their enterprise customers. All of these were possible due to its team of more than 400 surveyors, post-physical and satellite surveys, and most importantly, its 25 years of research. The company now has a repository of more than 2 Cr data points, including 3D data visualizations, telematics, and navigation systems under its belt.

    Map Data collection work

    The company not only sends more than 400 surveys in the field but also collects hundreds of attributes like footprints, doorsteps, floor numbers, flat numbers, and photographs of every location. It is because of this information that the company has created a digital map of the country of inter-connected information with all those geographical markers and coordinates. MapmyIndia has also entered into more than 100 strategic partnerships with tech and marketing companies, to facilitate the process of data collation faster.

    Four Key Markets of MapmyIndia

    In terms of the verticals, MapmyIndia addresses four key markets:

    • Direct consumers (through free and paid app/maps)
    • Automotive (40% of revenue)
    • Mobile Internet (20%) and
    • Enterprises and government (40% of revenue).

    MapmyIndia – Revenue and Financials

    MapmyIndia QoQ Financials

    The operating revenue in Q1 FY23 of MapmyIndia, grew by 50.2% to stand at Rs 65 crore when compared to the revenue it received in the corresponding quarter in FY22.  

    The expenses of the company also increased by 37.5% in Q1 FY23, when compared with the Rs 27.4 crore expenses it registered in Q1 FY22. The expenses of MapmyIndia in Q1 FY23 are registered at Rs 37.7 crore.  

    The PAT of MapmyIndia rose 17.5% YoY in the first quarter of FY23, to become Rs 24.2 crore.

    MapmyIndia YoY Financials

    MapmyIndia’s revenue from operations was close to Rs 200 crore in FY22. The company earlier registered Rs 153 crore in operational revenue, which grew by 31%. The revenue from operations of MapmyIndia was previously noted to be Rs 135.2 crore and Rs 149 crore in FY19 and FY20 respectively.

    The expenses of MapmyIndia rose only slightly, by 11%, up from Rs 113 crore in FY21 to become Rs 125 crore in FY22. MapmyIndia expenses were earlier registered at Rs 120.16 crore in FY19 and Rs 131.78 crore in FY20.

    MapmyIndia profits after tax (PAT) stood at Rs 87 crore in FY22, which witnessed a 45% rise from Rs 59.4 crore worth in profits in FY21. The profits were earlier Rs 33.6 crore in FY19 and Rs 23.2 crore in FY20.

    MapmyIndia Financials FY19-FY22
    MapmyIndia Financials FY19-FY22

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    MapmyIndia – Market Share and Funding of MapmyIndia

    MapmyIndia cloud mapping services are used by many well-known tech companies such as Paytm, PhonePe, Amazon, Alexa voice, Flipkart, Uber, Ola, Grofers (now Blinkit), for various things like planning, operations, and customer experience. The company also offers advanced navigation and location services to the vehicle manufacturer and has a 95% market share in GPS navigation in India. It also claims to have 5,000+ enterprise customers with an 80% market share in the location intelligent space.

    MapmyIndia Funding

    MapmyIndia has so far raised $34 million in venture capital financing in the three rounds since 2007 from Lightbox Ventures, Nexus Venture Partners, Qualcomm Ventures, and Zenrin. In 2015, Flipkart announced that it has acquired 34% stake in the company for Rs 1,600 crore and provided a successful exit to MapmyIndia’s early investors. Over the years, the firm’s value has more than tripled due to the increase in the adoption of its technologies.

    Date Name of the Funding Round Deal Value Lead Investors
    May 1, 2014 Venture Round – Lightbox
    February 15, 2009 Series C $9 mn Qualcomm Ventures
    August 10, 2007 Series B $25 mn –
    April 19, 2007 Series A – –

    MapmyIndia IPO

    The company filed its draft offer documents with the Securities and Exchange Board of India (SEBI) on August 31, 2021. In its IPO, MapmyIndia was initially expected to go with an offer-for-sale of up to 7,547,959 equity shares by shareholders at a face value of Rs 2 each. This amounted to around 19% of post-offer paid-up equity share capital.

    C.E Info Systems, MapmyIndia’s parent company, has increased its total IPO offering to 9,589,478 equity shares, as per the reports dated October 20, 2021. MapmyIndia parent has received SEBI’s approval for its IPO that will consist only of an offer for sale (OFS) from the promoters and the existing shareholders and would offload up to 9,589,478 equity shares, as per the reports dated October 30, 2021. C.E Info Systems had gone live with its IPO on December 9, 2021, where it has seen a strong response from retail investors. The IPO was subscribed around 0.53 times or 53%, as per the reports on 11 am on the same day.

    The IPO of MapmyIndia parent witnessed a subscription of over 154 times, as reported on December 13, 2021. The upper limit of the IPO price band was at Rs 1,033, where the offer attracted bids close to Rs 1.12 lakh crore, as disclosed on the same date. The MapmyIndia shares were listed at Rs 1581, which is a 54% premium to its IPO price of Rs 1033 per share.  

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    FAQs

    When was Mapmyindia founded?

    Mapmyindia was founded in 1995 by Rakesh Verma and Rashmi Verma.

    Which is the parent company of MapmyIndia?

    CE Info Systems Ltd is the parent company of MapmyIndia.

    Who is the owner of MapmyIndia?

    Rakesh Verma and Rashmi Verma are the owners of MapmyIndia. He is the Chairman and Managing Director of MapmyIndia.

    How does MapmyIndia earn?

    MapmyIndia earns through different sources like:

    • Direct consumers (through free and paid app/maps)
    • Automotive (40% of revenue)
    • Mobile Internet (20%)
    • Enterprises and government (40% of revenue).

    What are the premium features of MapmyIndia?

    The premium features of MapmyIndia are:

    • House/Building level navigation for 337 cities
    • 3-D landmarks across 90 cities
    • Junction views for easy navigation at complex junctions
    • Lane Guidance in 900+ cities and along National Stretches
    • Text-to-speech
    • Visual & Audible lane guidance
    • Signpost 52000+ cities
    • Audible signpost.

  • How to Get Pre-seed Funding for your Startup in India?

    The era of startups and business has dramatically changed in the past decade and especially after the Covid-19 pandemic. Hence, it is very important for all of us to know and understand what the funding landscape looks like today and in the future. Earlier, the only goal for businesses and entrepreneurs was to get Series-A funding. If one did not have enough traction, the only way forward was bootstrapping.

    Fortunately today, startup investing has become more competitive and new level funding categories have made their way to the market. One of the increasingly popular funding ways for emerging companies and businesses is Pre-seed funding. This funding requires you specific preparation so as to set yourself and your business up for growth and success.

    The Pre-seed investors have been a boon to the startups as they allow them to raise the funds which they require and bring minimal viable products (MVPs) to life. This article is a guide for you to know what Pre-seed funding is and how to get pre-seed funding for your business or startup in India.

    What is Pre-seed funding?
    How to Get Pre-seed Funding in India?
    Where to find Pre-Seed Investors in India?

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    A step-by-step process of fundraising

    What is Pre-seed funding?

    In order to help a startup to start with its primary and base operations, an investor makes a small investment into the business. These investors or individuals invest in the business when they know the founder personally or hold strong faith in the business idea. This activity of investing is known as pre-seed funding.

    There are many platforms that provide pre-seed funding in return for a stake in the startup or the business idea. Pre-seed funding can also be obtained through crowdfunding.

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    How to Get Pre-seed Funding in India?

    It might sometimes seem nerve-racking for you to meet the pre-seed investors as in the initial stage one might not see the vision you carry. Like any other funding round, your key is to have your finances organized and have a clear business plan that will be used by you. Here are the tips through which you can acquire Pre-seed funding.

    Have Financial and Profitable Clarity

    At this stage, it is very important that you set an easy and clear outline of your business’s path to profitability. If you have a clear and thoughtful business plan that serves as a long-run road map for your startup then there are chances of you grabbing the investment.

    If you keep your financial estimates attainable and concise; put emphasis on the business strategy and transparency; prove your credibility, you can win the investor’s trust and funding.

    Keep your Business Proofs Ready

    When you pitch in front of investors, the key to winning the investment is that you show proof of success for your business idea. Test your business idea in the market, communicate your assumptions clearly, and transparently share your business plan with the investors will help you to get the pre-seed funding for your startup.

    Vouch for your Intellectual Property

    Even when you do not have any cash in hand and hard assets for your business, you can show your credibility to the investors. One of the best ways to do this is to make them believe in your intellectual property.

    If you are able to demonstrate your business idea effectively and ensure the investors that you will work towards your brand and will protect them from infringement by other business entities, you show your company’s credibility to them and make your pitch more investable.

    Show your credibility

    One of the most effective ways to show your worthiness is to be clear and confident about your past records and professional accomplishments. It is important that you present all the sources of funding that you would have acquired in the past (if any), and present all the successes that you have had in the past. Become very sure to explain to the investors how you were successful and support it with tangible and quantifiable evidence.

    Where to find Pre-Seed Investors in India?

    After you have got to know about the steps to acquire Pre-seed funding, you need to now find the investors. This is one of the most challenging parts for many entrepreneurs.

    Today’s investors do not accept unsolicited pitches and usually, they let them pitch you after an introduction from someone within their network. Here you will find a few ways to get your business to those who will invest in it and can fund it.

    Family & Friends

    Using your personal connections and network to invest in your business in the initial stage is a very flexible and safe option for pre-seed funding. People who have seen your journey, dedication, and passion will be willing to put funds into your ideas. If your friends and family see potential in you and your startup idea, then they would be definitely investing their money in your business.

    Pre-seed Funding Platforms

    Number of early-stage venture capital deals worldwide
    Number of early-stage venture capital deals worldwide

    In the industry, there are many pre-seed funding platforms that encourage businesses and startups at their base-development stage by providing them with small amounts of funds to initiate their business activities. Through Pre-seed funding platforms, your business will get an opportunity to start your operations and get access to the market.

    A few common Pre-seed funding platforms include:

    • Unitus Seed Fund
    • Infuse ventures
    • Kae Capital
    • Blume Ventures

    Crowdfunding Platforms

    Crowdfunding is an excellent way to generate pre-seed funds for your business or startup. Though equity-based crowdfunding is illegal in India, donor-based and reward-based crowdfunding options are entirely legal. Raising a small amount of money from large masses through crowdfunding platforms can be a good way of acquiring pre-seed funds for your venture.

    Business Incubators

    There are various incubators in the industry who are willing to make small-scale investments into startups and businesses in the form of pre-seed investments. Their aim and motive are to support and assist early-age entrepreneurs in pursuing substantial market opportunities. In India, a few great incubators are:

    • Advantage
    • Seedfund
    • StartupXseed
    • Incubate Fund India
    • Better Capital Labs

    Pitch Competitions

    One of the best ways to get in front of investors is to participate in pitch competitions. All you need to do is practice your pitch, mark a good impression, prove yourself and strike a pre-seed funding deal. Such startup pitch competitions have become very common today and it is a very good way of winning funds for your business idea.

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    Conclusion

    Although anyone can bootstrap, some unique and revolutionary ideas need Pre-funding to be invested in the idea. Some people give up on their dream because they think getting pre-seed funding is near impossible and in fact, magical. But not the real entrepreneurs. They hustle, plan and reach the best person who believes in their ideas and invests in them. They find such people by strategizing and expanding their network, at the same time.

    Remember, you can reach anyone. There is a difference of only 6 people between you and that person. And if you keep expanding your network, you will reach that perfect investor who actually believes in your idea and invest in it.

    FAQs

    What is Pre-seed funding?

    In simple words, Pre-seed funding is the capital needed to start any business. It is acquired by investors to develop the business in return for equity in the company.

    What is the average amount of pre-seed funding in India?

    Most startups expect $500,000 or less pre-seed funding from investors.

    How much equity is given in the seed rounds?

    Most founders usually sell 10% to 20% equity in seed rounds.

    Where can entrepreneurs find Pre-seed funding?

    Entrepreneurs can find Pre-seed funding from several sources:

    • Family & Friends
    • Pre-seed Funding Platforms
    • Crowdfunding Platforms
    • Business Incubators
    • Pitch Competitions

    How to get pre-seed funding in India?

    Some tips to get pre-seed funding in India:

    • Have Financial and Profitable Clarity
    • Keep your Business Proofs Ready
    • Vouch for your Intellectual Property
    • Show your credibility

  • All About Pitch Deck Presentation | Pitch Deck Tips for Pitching Investors

    If you’re a business owner, you’ll need to know how to pitch your idea. Even if you don’t intend to seek investment, having a strong elevator presentation demonstrates that you understand your company inside and out. Which will come in handy if and when you decide to seek funding. Whether you’re a new owner or a “corporate entrepreneur,” your pitch deck is crucial, because it represents your logic for why investors should believe in your concept and provide you with a substantial sum.

    To market their firm to potential investors, startups commonly create a “pitch deck.” It’s tough and time-consuming to raise funds from investors. As a result, it’s critical for a business to develop a strong investor presentation deck by telling a fascinating and appealing tale.

    We’ll talk about the value of a solid pitch deck and other financing presentation tips in this article.

    What is a Pitch Deck?
    Importance of Pitch Deck
    Tips To Successful Pitch for Funding

    Pitch Deck Tips | How to create a Pitch Deck for Investors

    What is a Pitch Deck?

    A pitch deck, also defined as a start-up or investor pitch deck, is a demonstration that provides information regarding the company to interested clients. The fundamental purpose of a pitch deck, as weird as it may sound, is to get to the next round, not to get funds.

    Obtaining finance entails a multi-step procedure. The first step on the scale is a good, informative pitch deck. You’ll want to pitch investors with a concept that piques their interest and encourages them to interact with you. A pitch deck presentation is made up of a number of slides that help you create a convincing tale about your company. You can make one with standard software like PowerPoint or with a cutting-edge tool like Visme to produce a one-of-a-kind slideshow.

    Importance of Pitch Deck

    A Pitch deck is the first tool entrepreneurs use to communicate with investors, whether online or in person. It serves as a marketing pitch for financiers, allowing people to comprehend the startup in the way that they are used to. A pitch deck assists in conveying information to potential investors, clients, and partners in an organised and aesthetically appealing manner. The goal of the pitch deck is to explain the sophisticated workings of your business and the industry it works in, to stockholders interested in your venture, with the goal of generating their attention to your startup.

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    Tips To Successful Pitch for Funding

    Pitch Deck Presentation
    Pitch Deck Presentation

    Funding is quite important for any startup growth. Pitch Deck presentation helps in telling a compelling story of your business that attract investors to invest in your startup. Many startups turned unicorns with successful pitch deck presentations. Here are some pitch deck tips for pitching investors to your business.

    Build an Impressive Presentation

    Spend the effort preparing your pitch deck beforehand. The idea is to make a deck that is simple to work with and that gets financiers enthused about your company. With this in mind, you should prepare a 10-minute edition as well as an extensive one that covers everything you’d like to share with possible investors.

    Rehearse Your Pitch Properly

    You should work on your pitch. Because if you won’t be able to swiftly communicate with each aspect of your company, every other piece of advice on this list will be rendered useless. Too many founders believe that simply knowing their business will enable them to articulate its value quickly and effectively. Furthermore, having a dynamite pitch deck with eye-popping images would suffice. As a result, they arrive at pitch meetings ill-prepared. Spend the time to rehearse, simplify your content, and maintain just the aspects that contribute to the success of your company. Anything else can be left on the final cut.

    Show Realistic Target Market

    Target Market in Pitch Deck Presentation of DocSend
    Target Market in Pitch Deck Presentation of DocSend

    Even if it is true one day, don’t say that everyone on the planet is possibly your intended audience. Consider who you’re designing your item for and divide your marketplace into TAM, SAM, and SOM segments. This will not only amaze your listeners, but it will also assist you in strategizing your roll-out strategy. When talking about your target market, strive to create a user persona or your ideal customer if you can. This can assist investors in visualising the possible consumer base and shows that you’ve given careful consideration to who your company will service. In a fast pitch, it’s also far easier to communicate to a specific person rather than a large audience.

    Business Model of Your Startup

    Business model in Pitch Deck Presentation shared by Mint
    Business model in Pitch Deck Presentation shared by Mint

    This presentation is usually the most important to investors. How are you going to make a profit? The business model of your business is very crucial, be it a freemium business model, subscription business model or Franchise Business Model. Be very detailed about your products and pricing, and underline how eagerly your consumer awaits your entrance once more.

    Share Your Milestones

    Milestone shared in a Pitch Deck Presentation shared by Castle
    Milestone shared in a Pitch Deck Presentation shared by Castle

    You would like to establish credibility early in the presentation. Take some time to share the success you’ve gained in your field. This is your chance to talk about your accomplishments. What you and your team have accomplished thus far will impress the investors (sales, contracts, key hires, product launches, and so on). You’ve probably stated parts and pieces of this already, but now is the time to establish a whole picture of your company. But don’t simply talk about what you’ve done; also talk about where you’re headed. Show them a timeline with the next stages and extra milestones, as well as how the financing will assist in attaining them.

    Introduce Your Crucial Team Members

    Investors are more interested in people than ideas, so be sure to include information on your hard-working crew and why they are the best people to manage this company. Also, make sure to mention any skill sets that your team may be lacking. Most startup teams are short on crucial personnel, such as marketing, managerial knowledge, programmers, sales, operations, and financial management. Let them know you’re aware that you’re not an expert in every field.

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    Conclusion

    You won’t know how fantastic your pitch is unless you give it a try. Don’t get too worked up, and approach each investor pitch as a learning opportunity for both you and your company. You’ll only get better as time goes on, and you’ll be able to apply what you’ve learned to all aspects of your company.

    FAQs

    What is a Pitch Deck Presentation?

    Pitching is a short-term presentation of your business idea that can last anywhere from a few seconds to a few minutes. You can either utilise a PowerPoint to support your speech or simply deliver it verbally. A pitch’s main purpose is to attract new consumers, investors, or stakeholders to your company.

    What makes a good pitch deck?

    It should include your company plan’s main themes, the items and services you offer, high-level financial estimates, and capital requirements.

    What does a great pitch deck look like?

    A pitch deck is a 10- to 20-slide presentation that gives a quick overview of your firm, revenue, business model, and startup goal.

    What are the elements of a good Pitch Deck presentation?

    Some elements of a good Pitch Deck Presentation for startups are:

    • Product/Service the Business Offer
    • The Problem your business is solving
    • Target Market Size
    • Business Model
    • Revenue Model
    • Competition
    • Crucial Team Member

  • What Does an Investor Look Out for in a SaaS Product?

    With dramatic tailwinds and accelerated digital transformation, the SaaS market has grown exponentially in the last decade. The industry has managed to amass a revenue of $104 billion in 2020. By 2022, the market is expected to reach $140 billion, according to Gartner.

    Whether you’ve created a SaaS product to solve a problem or make extra income, it is a valuable asset. However, when it comes to scaling the product, you need investment. But what’s the final checkpoint that the investor looks out for in a SaaS product? It’s vital to understand how valuations and metrics work in businesses.

    Investors think a lot about characteristics that are representative of an early-stage startup. Before they invest in your company, they want to see specific metrics. And so, to help you prepare these, we’ve compiled an overview of the most crucial SaaS metrics. If you adhere to these, your valuation is bound to improve.

    1. Clear Ideal Customer Profile (ICP)
    2. AI-powered SaaS Applications
    3. Product-led Growth Strategies
    4. MRR
    5. Customer Acquisition Cost (CAC)
    6. Churn Rate
    7. EBITDA

    1. Clear Ideal Customer Profile (ICP)

    When it comes to product building and efficient selling, it’s fundamental to know your target audience. Companies that have an apparent understanding of their target customers have improved chances of success.

    Investors look for a well-defined ICP before investing in the business. Therefore, entrepreneurs should establish their ICP through apparent insights and extensive “Voice of Customer” Research. It’s also essential to build the customer base from a combination of past experiences.

    Some of the most substantial benefits of a clear ICP are:

    • An efficiently targeted go-to-market (GTM).
    • Highly focused product roadmap.
    • Shorter sales cycles and value propositions.

    2. AI-powered SaaS Applications

    Artificial intelligence plays a significant role in advancing modern software to automate work for consumers. At its core, AI-powered SaaS applications can be trained on increasingly larger datasets and be further augmented with customer-specific data. Thus, allowing users to automate tasks and make better-informed business decisions. Consequently, it will propose a unique standpoint to the investors.

    Some SaaS companies developing AI-powered applications comprise:

    • Yalochat – It is a conversational AI-powered platform that allows businesses to efficiently communicate with customers.
    • Zeni – It is an AI application that provides bookkeeping, financial reporting, and invoicing services.

    3. Product-led Growth Strategies

    The product-led growth (PLG) strategy is crucial when it comes to building SaaS companies. It allows the consumers to test the product for themselves. Without the restraint of features, users can effortlessly explore the product and infer its value.

    This not only helps businesses develop consumer-like products but also furnishes lucrative returns. The PLG strategy has become business-critical across all enterprises functioning. Companies adhering to product-led growth have increased chances of being approved by investors.

    The PLG strategy has capitalised on a few trends, including:

    • Reduced sales cycle and buying decisions.
    • Fast employment (due to the cloud-based feature).
    • Easier purchasing (swipe a card and go).
    • Intuitive onboarding and adoption.

    4. MRR

    Monthly Recurring Revenue or MRR is a leading indicator of revenue growth. Hence, it’s a well-received way to appraise SaaS businesses. Investors are more likely to consider the MRR rather than the ARR (Annual Recurring Revenue). Simply because the ARR doesn’t furnish much proof of churn.

    Big SaaS companies with high MRR can raise a sizable amount of money during seed funding rounds. If small businesses or brands are experiencing rapid growth and meet the criteria of investment, they could be valued using MRR. Below mentioned are the criteria:

    • More than $2M ARR
    • 50% growth year after year
    • Founder involvement isn’t important for the business’s survival.

    5. Customer Acquisition Cost (CAC)

    Customer acquisition cost or CAC is a significant metric to assess marketing and sales cost. It helps measure the effectiveness of your SaaS business’ customer acquisition strategy.

    Furthermore, it analyses the expense incurred (on average) to attain new consumers. CAC also represents the return on investments in sales and marketing. Thus, it is a meaningful metric for potential investors.

    An efficient customer acquisition cost allows the investors to gauge the scalability of your SaaS product or business.

    6. Churn Rate

    The churn rate is the long-term trajectory of any SaaS business. A low churn rate improves the recurring revenue, and growth rate – and curtails the risk of long-term value loss.

    Smaller companies have a higher churn rate because of less sophisticated needs and low demands. Investors would not invest in a SaaS company that experiences a high churn rate. That’s because it signifies you’re losing potential customers – and your company’s retention rate isn’t up to the mark. Hence, the churn rate is a fundamental metric that SaaS business owners need to cater to.

    Ideally, lost customers equal lost revenue. Besides, it’s far more expensive to attain new consumers than it is to retain the old ones. Therefore, businesses should focus on customer retention to improve scalability and performance.

    7. EBITDA

    EBITDA stands for earnings before interests, taxes, depreciation, and amortisation. SaaS businesses that make annual revenue of $5 million will likely use EBITDA.

    It is a substantial measure of core profit trends. This metric furnishes an accurate comparison between companies with different capital investments, tax profiles, and debt.

    Besides, it eliminates extraneous factors, boosting returns. This allows a fleshed-out infrastructure and accelerated growth in your SaaS business. Thus, making it investable.

    Conclusion

    The COVID-19 pandemic has bestowed heavy growth to the SaaS industry. With companies compelled to take their business operations online, the SaaS market has grown fierce – yet competitive.

    Seeking venture capital funding is of paramount importance in any SaaS business. Investors would only plough their money into your business when you can convince them of your company’s commercial viability and growth potential.

    To fight competition, survive, and thrive, you need to stand out from the rest. Thus, there are a few business metrics that you need to take care of. Essential metrics, such as the CAC, MRR, and Churn rate define your company’s scalability and future. Once you cater to these metrics, your SaaS business is ready to successfully attract investment.

    FAQs

    What do investors look for in a SaaS company?

    Low churn rate, Product-led growth, AI-powered SaaS applications, and EBIDTA.

    What is one of the most important metrics in a SaaS model?

    Customer lifetime value is one of the most important metrics in a SaaS model.

    What are SaaS metrics?

    SaaS metrics are different KPIs that companies measure to track their success and customer growth.

  • Everything about Mudra Loans | How to Apply for Mudra Loan?

    The increase of startups and the interest of young entrepreneurs to start their businesses has led to many schemes introduced by the Government of the country. Several opportunities are given, to pursue the dream of being an entrepreneur to the interested people. Out of so many schemes, one of them is Mudra Loan.

    Mudra loan or the Pradhan Mantri Mudra Yojana (PMMY) scheme was launched in 2015 by the Prime Minister of India. MUDRA, which is short for Micro Units Development and Refinance Agency, provides loans up to Rs. 10 Lakh to the non-corporate and non-farming small and micro-enterprises. This also includes enterprises involving allied agricultural activities.

    It is known globally that Indians have a great creative and innovative mind, however the majority of them are unable to convert these ideas into profitable businesses due to financial reasons. This is common in almost all the different sections of society. PMMY was mainly to encourage everyone to try and implement their ideas.

    What is Mudra Loan?

    In 2013, it was found that there were around 5.77 crore micro and small enterprises in India and about 60% of these were owned by backward classes. These units cannot be covered by the formal loan lending sectors. This means that they might have to depend on informal lending sectors which can lead to a lot of issues or manage with their own funds. The Mudra Loan scheme is to support young, budding entrepreneurs and also existing businesses to expand and experiment with their ideas. This is much more secure and the rate of interest is not very high.

    The Schemes Under Mudra Loans

    Mudra loans have several schemes under them and they are:

    Shishu

    This is when the amount required by the borrower is less than INR 50,000. This is usually given to entrepreneurs in their early stages. This is basically a working capital term loan. There are a few things that are checked in this case. The checklist here includes the Machinery quotations and the details. The machine details have to be provided perfectly well. The borrower should also provide all the details that the banks ask for. This might include the details of the supplier. This is basically for startups.

    Kishor

    This covers loans from INR 50,001 to 5,00,000. This is not for beginners but already established businesses when they want to expand their business operations. In this case, they might require tax returns. The lender needs to know all the details of the company. It is also required to submit the balance sheet for the last 2 years, the estimated balance sheet for 1 year, MOA and AOA, and the sales made before the company applied for the loan in the Financial year.

    Tarun

    This is another scheme that covers loans from INR 5,00,001 to 10,00,000. This is when the business owner meets certain preset conditions. The required documents and details are similar to that of Kishor but there are a few other proofs that are to be included. This includes the caste certificate, Address proof, Identity proof, and other essential documents. The loans are approved only if all the documents are perfect and none of the documents is missing or faked.

    Who Can Borrow Mudra Loans?

    Mudra Loan Schemes encourage women
    Mudra Loan Schemes encourage women

    There are various enterprises that can borrow under the Mudra loans scheme. This includes individual business entities, partnership firms, public companies, private companies, Proprietary firms and so on. Also, to be eligible to borrow this, the applicant should have a proper credit track record. The proposed activity is properly studied and based on that, the lender might ask for educational qualifications and other basic requirements.

    The borrower will be eligible if he submits all the documents and has all the basic requirements listed by this scheme.

    Sectors Covered Under Mudra Loans

    • Food product sectors
    • Textile
    • Transport and transport activities
    • Community, personal service and social activities.
    • Activities allied to farming and agriculture.
    • Finance for the equipment in micro-units.
    • Business loans for shopkeepers.

    Features and Benefits of Mudra Loans

    The key benefit of this scheme for borrowers is that they do not need to show collateral or security. Also, there is no processing fee for this. Also, there is no minimum amount that you need to borrow. It can be used for various purposes like expansion, modernization, machine purchase, renovation, etc. There is no processing fee involved. Only in the case of the Tarun loan, 0.5% of the loan amount is charged as the processing fee. Mudra loan can also be availed online and the repayment period lies between 3 and 5 years, depending on various factors. The interest percentage for Shishu is nil and for the other 2, it is 10%. Also, the age of the borrower must be above 18 and below 65 years to avail of Mudra loans.

    Steps To Apply For Mudra Loans

    It is very easy to apply for Mudra loans. You have to have all the necessary documents.

    • Step 1: Check what are the documents necessary for the amount you need and keep all the documents ready.
    • Step 2: Approach a financial institution. This loan is available in almost all renowned financial institutions. You can approach any one of them or even check their website out for details. Make sure to check if the financial institution is registered under the Mudra scheme.
    • Step 3: The next step is to fill out the application form carefully. Almost all the details like personal and business details. The documents have to be attached. Mention the amount you might need. There are different forms for Shishu, Kishore and Tarun. Choose the right form and keep the documents in hand while filling out the form.
    • Step 4: Wait for approval. Once the loan is approved, you will receive the Mudra card. You can use the card to draw the money you need.

    This is the set process in almost all approved financial institutions. It is safe and secure.

    Conclusion

    Small businesses and entrepreneurs can go for a Mudra loan as it is easy to get approved and also it will help them get the first capital for their company. Since there is no collateral or security required, it can be availed by anyone satisfying the criteria. This serves as an encouragement for youngsters with an idea to get basic funding for their business idea and hence they will be able to put their idea into practice. This is available in various institutions and also can be dealt with online. This makes the entire process much easier than it is. The only major criteria are that all the documents to be submitted must be perfect and the borrower should be within the specified age limit.

    FAQs

    Who introduced Mudra Loan?

    Prime Minister Narendra Modi introduced the Mudra loan.

    When was Mudra Yojana announced?

    The Mudra Yojana was announced on 8th April 2015.

    How much loan is provided by Mudra Yojana?

    Mudra Yojana provides loans of up to INR 10 Lakhs to borrowers.

  • 12 Downsides of Being Rich

    Money is the most important thing in this whole world, without it, humans cannot survive. There is hardly anyone in this world, who doesn’t want to be rich and spend money without checking out the left balance in their pocket. Everyone is dreaming to be the wealthiest person so that they don’t have to worry about anything.

    However, we also have the demerits of being rich. Every one of us has heard the statement that “Money can’t buy you happiness”. Unfortunately, it is the correct statement. Having money can solve hundreds of problems in your life, but it also creates thousands of new problems for you.

    Before enumerating the problems of being rich we quickly throw some light on the definition of being rich. This would help you to understand the possible problems which you face after being wealthy and prosperous in life. Rich people are divided into two categories –

    • Self-made rich
      The person who had worked hard and given all their efforts to live life like they own the world are self-made wealthy people. This segment of people has utilized more than half of their life earning the wealth and another half in some luxurious farmhouse with enormous bank balances.
    • Trust-funded rich
      This category of rich people is sustained by their previous generation’s money. They didn’t have to hustle hard to raise money from scratch, which leaves them with no experience of work in life. They only had to look for ways to make it bigger and sustain the wealth.

    Being rich might seem like every problem of your will get solved in just a snap of your finger. However, the reality is far from that. In this article, we will talk about the disadvantages faced by people, while being rich. So let’s get started.

    “It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.”
    -George Lorimer

    Disadvantages of Being Rich

    Being rich has its own advantages and you know the advantages very well but you are here to know the disadvantages of being rich and we will briefly narrate the problem you have to face if you are wealthy.

    • As per history, most wealthy people have stayed alone for a lifetime. Some people choose to be alone and other stays alone because they have never found the right partner to share life with, as they are too busy to make money. All the rich people have somewhere crumbled their relationships with their closest to build their careers.
    • Wealthy people are not able to spend personal time socialising with people. As per a report, people with higher income spend 90.6 evenings with their family, 60.6 evenings with their neighbours and 65.6 evenings with friends. While people with lower income spend 96.4 evenings with family, 64.9 with neighbours and 61.1 with friends.
    • Undoubtedly, if you are rich it will be tough to find a true friend because most of your friends will be with you for the money and power. It becomes a legit difficult situation to share your deep secrets of life and get some friendly advice.
    • You’re automatically subjected to the rumours of the town. Hungry reporters will hunt you for top news for their channel TRP. Everyone is interested in your personal life and wants to know your secrets. If they don’t find any spicy news, then people go creative and create rumours about you. You need to bear all the nonsense of the people and remain unaffected.
    • People focuses on your wealth more than your characteristics.
    • You will be called in 90% of your friend’s hangout to pick the tab and pay bills. As you’re rich, so you are supposed to pay the bill every time.
    • Every friend and a relative who have a startup plan will drag you to fund their plan. Otherwise, you will be considered a rich snob.
    • Rich folks have trust syndrome. They can’t trust anyone easily and so they have to cross-check every strong intention, before considering them as a friend.
    • The rich people have to get comfortable with higher taxes. In fact, taxes are an obvious downside that many millionaires and billionaires try to avoid by putting money in offshore accounts.
    • Fake friends are abundant. Many men and women want to hang out with you if you are rich. When you tell them you lost all your money, they will start avoiding you and disappear from your life.
    • While becoming rich, you had to sacrifice a lot. Birthday parties, vacation and many other important events of your closed ones. This do take a toll on your personal relationships.
    • Criticim is part of wealthy, you’ll find people disliking you and criticising when they don’t even know you.
    • People will treat you differently, they might thing that just because you’re rich, you can’t have anymoreproblems.

    Conclusion

    Being rich may come up with lots of benefits but there are a few the struggles that rich people also have to face in their daily life. Sometimes, even money cannot solve your problems, even though it solves most of them. We cannot ignore the new problem that accompanies wealth.

    FAQs

    Who is the richest person in the world?

    Elon Musk is the richest person in the world, with a net worth of $274.3 billion.

    Who is the richest person in Asia?

    Gautam Adani is currently the richest person in Asia.

    What are the disadvantages of being rich?

    Rich people become addicted to money, ignore close relationships with friends and families and often buy unnecessary expensive things.

    Who is the richest woman in the world?

    Francoise Bettencourt Meyers is the richest woman in the world.

  • What Is Bharat Founders Fund and How to Raise Funds From Them?

    Done with all gossip involving Shark Tank judges and Contestants. Let’s move ahead to the new talk of the town and the biggest venture of 50+ investors all working for providing better support to future entrepreneurs.

    According to the Economic Survey 2021-2022, India has become the third-largest Startup Ecosystem In the World. There are more than 70,000 startups in India with 93 Unicorns. Unicorns are companies having a valuation of more than $1 billion. With the growing numbers of startups, the government plans to provide better facilities to them.

    However, starting a startup and leading it to the road to success are two different things. The government does provide better services for starting a startup. Yet, guiding a startup toward success can only be done by someone insightful. To process the needful, a group of Investors mostly successful entrepreneurs and senior leaders, came together under the brand name of Bharat Founders Fund.

    What is Bharat Founders Fund?
    Importance Of Bharat Founders Fund
    List of Companies Bharat Founders Fund Has Invested In
    How to Raise Funds From Bharat Founders Fund

    What is Bharat Founders Fund?

    Bharat Founders Fund (BFF) is an early age venture of 50+ investors looking forward to supporting startups. The group of investors includes successful entrepreneurs and senior leaders.

    Amongst them, some popular names are Vidit Aatrey and Sanjeev Barnwal, co-founders of Meesho; Gazal Kalra, co-founder of Rivigo; Cars24 co-founders Vikram Chopra, Mehul Agrawal, and Gajendra Jangid; Smita Deorah and Sumeet Mehta of Lead School; Vamsi Krishna, co-founder of Vedantu; and Saurabh Garg, co-founder of NoBroker.

    The tagline of Bharat Founders Fund is “By today’s leading founders, for the next generation of founders“. The BFF is a group of successful Indian entrepreneurs globally looking forward to investing in early-stage ventures and providing them with backup support for building a future Bharat.

    Bharat Founders Fund has its target of funding 100 companies each year. BFF has an approximate target of spending $20 million on investments with the spending of about $1,00,000 – $2,00,000 on each startup. The startups selected by BFF can be in their early form of an idea and then can be nurtured through the efforts of the BFF team and startup leaders.

    The Fund and its process will be managed by Investopad partners Maanav Sagar and Sera Arora.

    Investopedia is a firm helping startup leaders get where they are going by providing them with needed support from investors and mentors.

    “The idea is to help these companies get access to the best mentorship and interact with a wide portfolio of our venture partners who have built successful startups,”, expressed Maanav Saagar on his thoughts on BFF ventures.

    Importance Of Bharat Founders Fund

    India is in its leading position for the introduction of startups. However, there is some lack of knowledge noticed when it comes to the subject of developing a startup. The best possible help for such situations can be mainly provided by the one who travelled the same path. Funds are another issue faced by startups. To help newly booming startups with funds and guidance, Bharat Founders Fund can be trusted.

    “Today, founders and senior operators in a startup have created wealth through either successful exits or employee options (ESOPs) and are actively looking to give back and invest in startups. Bringing these founders together as venture partners will allow Bharat Founders Fund to connect its portfolio companies with senior startup operators which have the experience of taking an idea (or business) from zero to one,” expressed Sera Arora in an interaction with ET.

    Apart from funding a startup, the Bharat Founders Funding team will be releasing playbooks at some intervals. These playbooks can be taken as a source of overcoming some

    List of Companies Bharat Founders Fund Has Invested In

    As per the recent updates, BFF has already invested in 20 companies. The list of companies is:

    • Skillbee-  A job offering platform.
    • Admit Kard-  An EdTech Startup.
    • FIXCRAFT- A car service center.
    • Yellow Class- A new-age learning platform.
    • Schmooze- A dating app.
    • Zorp- A software developing platform.
    • Wegot- An IoT-based water management startup.
    • Basic Home Loan- A Fintech company startup.
    • Convin- A conversation intelligence software startup.
    • Little leap- An online development platform.
    • Bliss club- A Women’s activewear brand startup.
    • Qube Health- A mixture of Fintech and Health Tech platforms.
    • Vaya- A financial service providing platform.
    • Wealthy- A Financial service platform.
    • Cloudchef- A Enterprise service company.
    • Looppanel- A conversation intelligence tool.
    • ThisDay- An internet publishing platform.

    How to Raise Funds From Bharat Founders Fund?

    Bharat Founders Fund is made to invest in early-stage companies with potential ideas. There are no proper eligibility criteria for any startups to look for. The Bharat Founders Fund will accept startups from all sectors as long as it catches the eyes of investors.

    One can easily contact Bharat Founders Fund by filling up the form on the website bff.investopad.com with the needed details.

    Bharat Founders Fund Form
    Bharat Founders Fund Form

    “We would like to invest and enter a company as early as possible. The idea is to help these companies get access to the best mentorship and interact with a wide portfolio of our venture partners who have built successful startups,” explained Maanav Sagar.

    After funding the selected startups, investors will not lead their way to become the board members, instead, they will provide necessary decisions when required. The investor can hold the power to change or appoint a director when required.

    Easy Ways To Find An Investor For Your Startup Company
    How to find investors in India? How to find investors to start a business? Let’s look at some ways to find an investor. We’ve listed some easy ways to find an investor for your startup company.
    StartupTalkyYash Gupta

    Conclusion

    Bharat Founders Fund is one of the biggest collaborations done by taking 50+ successful entrepreneurs and senior leaders on its team. They look forward to investing in potential startups and providing the needed support to startup leaders. The estimated amount to be spent on investments is around $20 million. BFF plans to invest in 100 companies each year.

    FAQs

    What is Bharat Founders Fund?

    Bharat Founders Fund is a venture capital firm founded by 50 successful entrepreneurs of India. Some of the entrepreneurs are, Vidit Aatrey and Sanjeev Barnwal, co-founders of Meesho; Gazal Kalra, co-founder of Rivigo; Cars24 cofounders Vikram Chopra, Mehul Agrawal, and Gajendra Jangid; Smita Deorah and Sumeet Mehta of Lead School; Vamsi Krishna, co-founder of Vedantu; and Saurabh Garg, co-founder of NoBroker.

    How to raise funding from Bharat Founders Fund?

    You have to fill out a form on bff.investopad to reach out to Bharat Founders Fund.