StartupTalky

Tag: funding for a business idea

  • 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.

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    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.

  • 7 Ways To Raise Funds For Your Startup or Business Idea

    A business startup comes with a lot of responsibilities. If you’ve got a business idea and you think it could make a change in the market, it’s up to you to make it a reality. Funding is an essential part of any business, as, without the seed money, you’ll be unable to fire the starting gun on your startup.

    Entrepreneurs are an incredibly clever and industrious bunch, but many are in the dark about how to fund their startup business idea, preferring instead to focus their energies on a core offering.

    Ways to Finance Your Business Idea
    1. Personal Money
    2. Seek for Angel Investors
    3. Crowdfunding
    4. Bank Loans
    5. Find a venture capitalist
    6. Pursue startup grants
    7. Family and Friends
    FAQ’s
    Conclusion

    Ways to Finance Your Business Idea

    Great ideas can only fulfill their potential if they are backed by a stable investment. These are some of the ways you can fund your startup:

    How Startup Funding Works.

    1. Personal Money

    For many people, the first inclination is to use personal money to make essential purchases. With a new startup creating so many different needs for money, it can be rather challenging to decide what needs to be funded first.

    Business costs start right from the time you decide on a business name. For instance, to retain that business name, you need to register a company name via a company formation. Registering a new entity costs money, but it is one of the first requirements to legitimizing your idea.

    Personal money can come from savings, and you can finance everything yourself, leaving you with total equity in the organization. One important factor to keep in mind is not only will you need cash for business purchases, but you will need working cash flow. You probably have other financial responsibilities. Therefore, you will need funds to deal with these. If you use up all your savings for your business startup idea, it could leave you in a precarious situation financially as you move forward.

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    2. Seek for Angel Investors

    There are some people out there whose sole job is investing in businesses that might help them make even more money going forward. These are known as angel investors and they have plenty of money to spare. These are the people you should be pitching to if you think your business idea is innovative and has the potential to make big money in the future. There are many online angel investment networks, as well as local investor groups you can pitch to in person, so do your research and start submitting your pitches.

    Find the right angel investor and not only will you benefit from their financial support but also their wisdom: oftentimes, they offer mentorship as a side dish alongside their capital. Although they generally offer less financial backing than banks and venture capital funds.

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    3. Crowdfunding

    Crowdfunding has taken off in a big way over the last few years. Crowdfunding is a favorite of the digital economy, and probably the quickest way of obtaining finance for a new business. All you need is a compelling pitch, one which strongly references your start-up’s potential for growth, as well as a knack for interacting with your cash-rich community. The sooner you get started and get creative with your crowdfunding campaign, the sooner you’ll start to draw more people in.

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    As a side benefit, crowdfunding is a nifty form of advertising, a way of stimulating public interest in your company before it’s even made its debut.

    4. Bank Loans

    In the modern age, it almost seems anachronistic to seek a bank loan. But if you have a solid credit history or existing assets that you’re happy to offer as collateral, as well as a workable business plan with clear profit forecasts, it’s still possible to launch your start-up with an infusion of bank cash. If you want to get money, it makes sense to head to a bank where they have lots of it. Their loans might come with harsh interest rates that could cause you plenty of problems further down the line though.

    5. Find a venture capitalist

    Finding a venture capitalist who shares your vision, or at the very least believes in your ability to turn your idea into a successful, profitable venture, is a good way of raising cash. The main con with this option is that venture capitalists are typically looking for the next big thing and so, many entrepreneurs struggle to convey the scale-ability of their enterprise.

    Venture capital funds, by their very nature, have a short shelf life as they generally seek to recover their investment, turn a profit then move on to the next fresh startup.

    6. Pursue startup grants

    Grants are great for people who don’t know where else to turn. If you have an unusual idea that investors and banks are scared of and crowdfunding doesn’t seem like a realistic option for you, it makes sense to apply for startup grants. While you shouldn’t expect to be cut a massive cheque, there are dozens of grants available, offered by national and state governments (as well as private enterprises) in the interests of stimulating the economy and growing the jobs market so it’s worth checking out your options for funding your startup.

    The main drawback is the fierce competitiveness of such grants, as well as the box-ticking involved, it can be a frustratingly drawn-out process, but that’s the tradeoff for retaining equity.

    7. Family and Friends

    Lastly, the idea of hitting friends and family for cash doesn’t sit well with some entrepreneurs, but many of the world’s top magnates readily admit to borrowing from their social network early in their careers. As such, you should have no compunction about doing the same.

    On the other hand, it’s not easy to put together a hefty bankroll relying solely on family and friends; and you have to ask yourself whether you want to risk straining meaningful relationships.

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    FAQ’s

    How difficult is it to get a business loan?

    It is difficult to qualify for a small business loan with a credit score lower than 700. Additionally, you should build a strong personal credit score and drive down any debt prior to applying for a business loan.

    What do startups use the funding for?

    Startups raise funds for various reasons but most often the main purpose is to grow their business. It can take a while for a company to reach profitability and until then, the business needs some cash to keep going.

    Who is eligible for startup India?

    Being incorporated or registered in India for less than seven years and for biotechnology startups up to 10 years from its date of incorporation. Annual turnover not exceeding INR 25 crores in any of the preceding financial years.

    How can I approach angel investors in India?

    Here are a few tips to approach angel investors in India are:

    • Approach angel investors in your niche.
    • Show them how successful your past business ventures were.
    • You’ve got to know the numbers involved.
    • Make it a priority to do proper research.
    • Stay confident.

    How to Get Investors for a Startup in India?

    • Create a profile on AngelList.
    • Prepare a record of investors to share your ideas with.
    • Brush up your networking skills.
    • Have a classy intro.
    • Tell them why they should invest in your startup.

    How can I raise money to start a business in India?

    • Go for Crowdfunding.
    • Consider Self-funding.
    • Get in touch with the Venture Capitalists.
    • Try Angel Investment.
    • Try Angel Investment.
    • Focus on the close.
    • Terms of the deal.

    Conclusion

    Perhaps a combination of funding options is best, but only you will truly know. All these above options require a great deal of consideration and researching because each of the options that have been discussed here has its own benefits and drawbacks, don’t forget that when you’re making your decision.