StartupTalky

Tag: Funding for Startups

  • 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 Do Investors Look For Before Investing in Startups?

    The article is contributed by Mrs. Deepti Sharma, Managing Director, Thinker Place.

    Investors are always on the lookout for ideas that are unique and can be of use in whatever sector they are being pitched in. Every idea, irrespective of what the idea contains, can be a great idea depending on the pitching method and the solutions/interactiveness that the idea has with its target audience. Ultimately, it all boils down to the product that you have and the potential – whether prominent or hidden, it contains.

    From personal experience, investors always want a thorough breakdown of potential products they are going to invest in. The standard breakdown questions by investors include the following:

    1. What is your idea/product? – A question to check what made you come up with the product and to know the root of development and the thinking process behind developing something.
    2. How does it help? – Products are made for consumers. Investors look for your target audience and the functionality of your product through this question. Products/ideas that provide immediate solutions or benefits to the target audience are ranked higher for investors.
    3. What does it do? – A trick question by investors to know the end-to-end process of a product. This is a critical question where investors check the development state of a product and make decisions on the amount to be invested.
    4. Materials used in the product – Investors today are always on the lookout for sustainability. The materials used in a product give investors a judgment on the cost of making a raw product and can help them determine the selling price. As an entrepreneur, this is also a key moment to display hidden trinkets and other special features that your product may hold.
    5. The “Units Sold” question – After the idea and the products have been pitched, investors ask about the market trend and public reaction to the product. This is a statistical question that is answered purely in numbers, raw data, and through a variety of content.
    6. Additional cost questions – The “make or break” question while pitching. Cost questions by investors look at individual raw material costs, production costs, the team’s cost, and most importantly – sales and marketing costs.

    PRODUCT IS KEY. There is no other way around it. Taking an idea and perfecting it to near-perfection is what all entrepreneurs and business owners strive for. On an added note, investors fall head-over-heels for PR activities and recognition that a product or entrepreneur has received. In short, the more recognition or “brand awareness” that you or your product has, the better.

    As an entrepreneur, you are not only pitching for the idea and the product that you’ve worked so hard on, it is also a pitch for trust. Investors look at your convincing power, your confidence, your real-world knowledge, your market knowledge, and above all, how far you will go for your product.

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    Statistically, most investors have already decided whether or not to invest in your startup business based on the first 5-10 minute interaction you’ve had with them.

    A quick guide to getting into the good books of investors:

    • Do your research – Knowing who you are pitching to, their background, their job profile and work history, what and who they’ve invested in previously, and any other details can help you in your pitch.
    • Dress to impress – There is no excuse for not looking professional. Think of it as a very important job interview. Though the new-found trend is to dress as one sees fit when attending business and pitch meetings, dressing in formal attire is a classic move that can never fail. Professional attire emits seriousness and intent and makes a lasting impression on investors.
    • Be confident – Pitch meetings can be nerve-wracking. Being anxious and nervous is a natural feeling for most anybody. Displaying what you’re feeling inside can leave a bad impression on your investors. From the moment you meet your investors, your confidence should be on full display. The way that you walk and the firmness of your handshake or head nod can assist you in showing confidence and seriousness.
    • Being organised – Before you start your pitch presentation, or before sharing your business module with investors, make sure to have all your documentation, gadgets, flashcards, products, and other necessary documents and items organised. One way investors know that you are not-so-serious about having them as investors is by being flimsy with documents and slow with setting up your presentation. For investors, time is of the essence, being organised always goes a long way in assisting your pitch presentation.
    • Portray yourself as the subject matter expert – The pitch for investment is all for you and your product, so it is only natural that you know thoroughly all about the origins of the product, where your product stands in the market, and the complete inside work of your business. Investors look for the devotion and near-obsession that entrepreneurs have when it comes to their products. This point answers the very important “Why should we invest in you?” question quite clearly.
    • Quick and logical thinking – Most of the time, based on data and other statistics that are provided to them, investors hunt to find defects or loopholes in your pitch. As such, they come up with scenarios or situations for the entrepreneur to answer. An entrepreneur should have quick and logical thinking based on real-world statistics about their product and should be able to answer all questions smoothly. Roleplaying different situations, and foreseeing or predicting the future of your product and the company is a sure way to answer most questions belonging to this category.
    • Negotiation skills – Lastly, but most importantly, entrepreneurs need to have a clear picture about what’s the purpose behind the investor pitch meeting. The skill to bargain and negotiate or “not settle” for something that’s outside the expected quotation is vital for success.

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    Conclusion

    To conclude, getting an investment is like a game of chess. Playing the right move at the right time to pique the interest of your investors and to keep them always occupied with you and your product is the key to a perfect pitch. What really matters is convincing investors to trust you and your product and to see the vision that you have. With the right attitude and confidence, getting investors on board is easy.

  • Bootstrapped Start-ups May Be in Luck With Seed Investors’ Growing Interest

    The article is contributed by Andesh Bhatti –  Angel Investor & Founder of Collectcent.

    Seed investors usually invest for one of three reasons – indulgent, humanitarian, and utilitarian. They invest either because they believe the idea will bring a transformation in the market, uplift the community, or the most evident and widespread – bring in a good ROI. Even though every seed investor has a specific reason for investment, they are all driven by market trends.

    For instance, even though financial, industrial, and technology-related businesses are currently dominating India’s stock market, attracting both local and global investors, the historic highs of the MSCI India index which received twice the global index returns in the last year have been fuelled by demographic trends, government and fiscal policies and geopolitical shifts of the global economy post the pandemic.

    This is the phenomenon that has resulted in a boom in the established networks and syndicates, as well as individual investors who can provide essential seed funding– and bootstrapped start-ups have especially caught their interest.

    Why should bootstrapped start-ups matter for seed investors?

    Bootstrapped businesses attract investors because they have already made it through the ‘valley of death’, found product-market fit, and most probably (although due diligence will reveal the specifics of it) generated enough revenue to keep the firm de-risked. Not to mention, that because they don’t have the buffer of investment capital to fall back on, bootstrapped start-ups are also more creative and confident. There are other advantages to funding a bootstrapped start-up as well.

    Entrepreneurial self-confidence is fostered when people are pushed to think outside the box, come up with original solutions, and make essential trade-offs. This is significant for investors who are looking for innovative ideas to invest in.

    Plus, bootstrapped start-ups usually exclusively look for and work with people who are willing to have a stake in the company’s success, and are dedicated to seeing it succeed. This fosters a sense of belonging and commitment within the team.

    Building a firm without investment capital also forces you to be more resourceful and deliberate. You’re careful with hiring and outsourcing, wanting to accomplish more with fewer resources.

    What happens when bootstrapped start-ups and seed investors align?

    Start-up founders and investors both benefit from an investment. Right from the start, when the investment is made, deficit spending has the potential to significantly enhance growth if done correctly. Investment allows the bootstrapped start-up to expand faster than it would have been able to without. Founders are essentially giving up partial ownership in exchange for greater growth and ultimate value. Overall, it is a great prospect for investors and a great way for start-up founders to spend or share their equity- but first, both parties need to reach the optimum place for action.

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    When does the investor’s interest arise?

    Building a team, testing the concept, establishing an online presence, garnering attention, finding consumers, and filing for intellectual property protection are all examples of major steps in the start-up development process. Once these are achieved, bootstrapped start-ups begin to look to raise capital to meet a new set of milestones.

    In the end, it all essentially comes down to important milestones and pivotal junctures called inflection points. An inflection point occurs when the value of a firm rises suddenly because of factors that include reduced risks, sanctioned standards, and verified predictions. It is when investors see that these key milestones have been met and the company’s valuation gets a boost, that the investors are ready to take a closer look at it.

    Early-stage Funding Activities are getting busier

    Indian investors’ profiles are evolving rapidly, as when more money flows in, more start-ups take-off, and exits get even more attractive and innovative. It is no longer only senior executives and affluent firm owners who are flocking to investment networks and writing checks to get in on the action; it is also mid-level employees, well-paid tech aficionados, and traditional stock market investors. They are the main drivers of the frenzied activity taking place in the early-stage funding market. In the past year, for instance, 455 start-ups received seed and Series A funding.

    The biggest complaint in the investment landscape in India has always been that while there are many ideas and people with potential, access to capital is still not as easy as it is in other developed economies. However, now as things appear to be changing, a large number of previously rejected proposals are likely to be funded, provided of course that they have value to offer.

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    Conclusion

    This implies that an entirely new chapter is about to begin and bootstrapped companies, already well-adjusted to market risks and possessing proven potential for growth (and responsible growth at that) will see great opportunities.

  • 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.

  • Hot Topics of 2022 in the Startup Ecosystem

    This article is contributed by multiple Startup founders from different fields.

    Indian startup ecosystem proved to be massive in the year 2021. With a fine number of unicorns, startups from different industries, be it tech, healthcare, food, fintech or others are making everyone’s head turn. Every industry is paving its way and is turning into something unimaginable. The year 2022, seems to be getting even more interesting and jaw-dropping.

    In this article, entrepreneurs from various fields shared their views about the industries that they feel are going to be the hot topics in the startup ecosystem, this year. So, let’s take a look.

    Rohit Sahni | CEO & Founder, WK Life

    Rohit Sahni | CEO & Founder, WK Life

    Looking at the current scenario of a possible third wave of Covid-19, I think the hottest topic of 2022 would be how to survive another slowdown in the industry. It could also be the change in the consumer behavior due to lockdown, as we did see a change in the consumer behavior after the previous lockdown. Other than this digital prominence would also be one of the hot topics, owing to the Covid-19 scenario.

    Abhinav Mital | Founder, The WorldGrad

    Abhinav Mital | Founder, The WorldGrad

    2022 is likely to see a continuation of the trends from last year and the massive adoption of technology in all aspects of our lives. Startups will continue to compete with each other to better service levels and go one up on each other whether it is grocery delivery or financial services. With plenty of capital flowing freely in the market, customers will continue to be spoilt for choices.  It is expected to see startups in the hi-tech space emerge, leveraging the use of AR or VR to enhance quality provision and introduce a new dimension for customers.
    Some of the sectors to watch out for will be fintech, ed-tech, health tech, and cleantech in both the direct-to-customer and business-to-business formats.

    Ankur Singh | CEO & Founder, Witzeal Technologies Pvt. Ltd

    Ankur Singh | CEO & Founder, Witzeal Technologies Pvt. Ltd

    India is becoming the world’s fastest-growing start-up ecosystem. As we move into the new year, technological innovations in any and every vertical will continue to drive the startup ecosystem. Partnerships between start-ups and large international entities are essential for the advancement of technological advancements, as well as the long-term growth of enterprises of all kinds.

    I believe the future of online gaming in India lies in the innovations and creativity leading to providing a personalized experience to gamers. Moreover, we foresee the employment and hiring landscape witnessing a sharp rise along with the players choosing their profession as gaming.

    Apu Pavithran | CEO & Founder, Mitsogo

    Apu Pavithran | CEO & Founder, Mitsogo

    At the forefront, most startups would look to increase viable partnership opportunities with other organizations. India is one of the fastest-growing hotspots for unicorn start-ups, so there will definitely be a stronger collective of unicorn start-ups with better investment opportunities. The post-pandemic world opened up a lot of opportunities for the start-up community. Most of them are looking at effective remote work/hybrid work opportunities to help improve employee well-being. Remote/hybrid work is beneficial to start-ups because it is cost-effective, and it largely helps employees in terms of commute, work-life balance, and improved productivity. Many start-ups will look into implementing cost-effective methods for workplace optimisation. Emerging technologies like 5G, AI, ML, edge computing, metaverse, will definitely create more opportunities.

    Himanshu Arya | CEO & Founder, Grapes

    Himanshu Arya | CEO & Founder, Grapes

    The last few years have been exceptional for the start-up ecosystem. There is a surfeit of talent in the Indian marketplace and the start-up sector will continue to thrive in 2022 as well. In this rapidly changing world, Innovation is the key to survival for start-ups. In my belief, the continued development around crypto-currency, Fintech, E-commerce, Metaverse, and Pharma will be in the consumer’s mind. We can see a lot of developments in these sectors in the near future.

    Nishant Behl | CEO & Founder, Expand My Business

    Nishant Behl | CEO & Founder, Expand My Business

    It has been a phenomenal ride for the start-ups in India, especially the emerging tech companies who are witnessing before themselves a new era of possibilities unfold. By the end of 2021, India has already become a home to around 81 unicorn companies of the world, of which 44 emerged to the status in a single year. The startup landscape seems to open up bigger and better possibilities in 2022. Buzzwords like crypto and blockchain are already resonating with the masses. An interesting scenario would be crypto transactions kicking off in the country.

    Another interesting thing to look out for is the several IPOs set to happen all through the year. While there is still much to understand how the Metaverse can be related to startups, this virtual reality is set to transform the way a lot of the MSMEs and the business sector work from hereon. Among all the buzz, yet another concern is to create sustainable and more resilient operation systems in companies. All this sets the positive tone for the startup companies and ecosystem which are destined to become the next leaders of the changing world.

    Vatsal Agarwal | Founder, The Baklava Box

    Vatsal Agarwal - Founder, The Baklava-Box
    Vatsal Agarwal – Founder, The Baklava-Box

    The pandemic has been a sour spot not just for existing start-ups but also for upcoming ones. The WHO has predicted that 2022 will be a withering of the pandemic and it should be a great time for start-ups to pop up. Radical innovations in startups should be encouraged and the government has been giving impetus for entrepreneurship. Even in our business, brands are changing their outlook towards delivery. Since covid, the focus has been more on a delivery-based model than a traditional sit and eat or take away. That will continue in 2022 as well.

    Varun Vashisthaa | Founder, HairVeda

    Varun Vashistha | Founder, HairVeda

    I feel that Indian Startups will try to create their mark in the global marketplace. Non-region-specific startups will definitely expand to the international audience once they have already captured the Indian market. Brands like ours can be hugely benefited from the international market since there is a massive demand and acceptance for ayurvedic products in countries like the USA, Mexico, etc. We all will see huge investments by the investor community in startups that have arrived with a purpose. Sustainable financing is the trend that will dominate the investment ecosystem for a long time. Crypto and Blockchains by startups will be seen from this year onwards and it will create a deep impact on the ecosystem.

    Shriyans Bhandari | CEO & Co-Founder, Greensole

    Shriyans Bhandari | CEO & Co-Founder, Greensole

    2022 is the year for start-ups. While the pandemic keeps disturbing us time and again, panic has reduced. I think we will get used to the pandemic. It was a challenge earlier but it will not be anymore. Startups will get more room to grow. A lot of startups will fail during this time but the start-ups that will manage to pull through will flourish. New startups exploring new niches will also come about.

    Kunal Patil | CEO & Co-Founder, WorkIndia

    Kunal Patil | CEO & Co-Founder, WorkIndia

    Services being offered by purely tech and tech-enabled companies played an important role during the crucial period of Covid-19. We expect 2022 to be another great year for the Indian Startup Ecosystem. Expect to see more companies catering to the smaller businesses and middle-income households

    Entrepreneurship, collaboration, and innovation will be the hot topics in this new year since these are the three key pillars making the entire Indian startup ecosystem the dynamic and vibrant space that it is today. The lessons that all businesses learned over the past two years will be a crucial factor as startups navigate through the new normal. However, we believe that 2022 shows a great promise of being an exciting year for all startups.

    Akshay Puljal | CEO, Quikish

    Akshay Puljal | CEO, Quikish

    Well, the first and foremost thing every startup needs to be prepared for is the continuation of the pandemic. We need to consider this in everything we do. In the F&B industry, you see the demand for clean food rising every day, and more people are leaning towards cooking in their kitchens than ordering from outside. We are glad that Quikish has got it covered already. We believe that Clean food and bringing. Convenience to home cook meals is the aspect which Quikish delivers without compromising on quality and flavours.

    Shilpa Rathi | Founder, I Am Love

    Shilpa Rathi | Founder, I AM Love

    Start-ups are about solving our everyday problems. Start-ups usually succeed when they are able to solve problems that have existed for a long time but people have learned to overlook them. You have been living with the problems and one day you just get up and decide not to live with them anymore. These problems should have solutions to make our lives easier. I think that should always be a hot topic in any startup ecosystem. Apart from that, trying to get adequate funding is always going to be a hot topic. The launch and having a strong customer base and always be a hot topic. Establishing your brand and being able to track the brand engagement and following will always be a hot topic.

    Farooq Adam | Co-Founder, Fynd

    Farooq Adam | Co-Founder, Fynd

    The lessons learned in the post-pandemic world will be crucial to growing your startup in 2022.

    SaaS Products will continue to grow

    SaaS will retain its throne & the market will welcome more cloud solutions with open arms. The surge in cloud software will continue to rise in 2022. More and more companies are making use of cloud software to manage data, productivity, and much more.

    Mass acceptance of Deep-Tech

    In the past 2 years, we have observed a radical emergence of deep tech. There will be a keen focus on implementing virtual technologies at the grassroots level.
    Indian startups raised $36 billion in 2021 to cope with the growing demand for digitization. As the pandemic stretches on, the technology efforts will start to gain more widespread acceptance. 2022 will see more innovation and increased tech adoption as extended reality makes its presence felt.

    Hybrid Workforce

    The reality is that the pandemic has been around for more than 2 years now, going to the office full time seems less and less likely. Organizations have to be open to the idea of hybrid work, where employees visit the office for a few days in the week/month/quarter and continue to work from home on day to day basis.
    People have also started to expect this flexibility from employers and it is important to listen to the pulse of the organization rather than imposing regulation.

    Rasesh Seth | Founder, Nextyn

    Rasesh Seth | Founder, Nextyn
    Rasesh Seth | Founder, Nextyn

    We’re seeing a variety of industries that are disrupting traditional ecosystems across the globe. The fintech industry has particularly been of keen interest not only to us, but also to several clients that have been using our services. I believe 2022 is going to continue to fuel its growth, with higher adoption rates and exceedingly high digital payment transactions.

    Another term that has been of keen startup interest is Automation. It’s not an independent industry, but the rapid rate at which literally everything is being automated, is frightfully exciting. I don’t think people are considering its long-term impact on the existing workforce, but it is surely making life easier for the vast majority. Right from daily tasks, to cars, to delivery or food. I think 2022 is going to be a year where we see a lot of our daily personal and professional tasks get automated. It’s an interesting space to watch, as its evolving at a monstrously rapid pace.

    Conclusion

    This is the age of Startups, they are making their presence known in every field and this is just the beginning. From new industries to more viable options regarding businesses. The Startup ecosystem is going to experience something even bigger and better in 2022.

  • When should you Stop Raising Funds for your Startup?

    Businesses are crucial for this world. You exchange what you have for something that you want. Trade is the basic brick that establishes the foundation of businesses. Which cements humans together with better cooperation abilities. As an entrepreneur goes about starting a business, he faces many problems. One of the problems is the issue of raising capital. If done correctly can change the future of enterprise for the better. Otherwise, it will sink the whole ship of sustenance.

    Money capital is the lifeblood of every investment. Without this fuel, there can be no product, no property, no sales and no cash flows. This is an article talking about the same issue of raising capital. Read to know, should you even raise money? when you should not raise money and when to stop raising capital.

    Things to Remember Before Raising Funds
    Disadvantages of Raising Funds
    When to Stop Raising Funds for your Startup?
    FAQ

    Things to Remember Before Raising Funds

    If you don’t know about raising capital, or If you don’t know how you will end up managing money – don’t raise funds. So, do your homework first. Deciding in advance, the goals and goalkeepers for the organisation is crucial. It will make the road to success otherwise it will be a recipe for disaster.

    Remember, raising capital is for achieving scale. Scale means growth in this context. Raising money is essentially losing control and getting scale. You need to let go of total control in some cases of raising funds. So, If you are not ready to jump off a cliff with a firm belief in your team and culture. Don’t seek a raise.

    Another con is simple yet thoughtful. You don’t need to raise. Yes, a raise is the least type of money that an entrepreneur wants. Even a Venture capitalist will tell you this. VC cheques are the worst kind of money. The favourable kind of money is your customers’ money. Your own revenue. The best way is to go bootstrapped. Again, If you are risk-averse, stay put.

    Disadvantages of Raising Funds

    The first question that a rational person should ask is “Should he/she really raise money?” This question is a valid and important point to consider. Raising capital is not a fairy tale, it has its downfalls too.

    If you are not ready to face the downfalls, smart advice will be that you stop chasing funds. These disadvantages can affect different people differently. Some might be more affected than others.

    Let us see some of the responsibilities that you will have to carry if you are seeking capital.

    Ownership

    When someone tries to raise capital, he is often left with the choice of diluting ownership of the company. Which means lessening the controlling power of entrepreneurs. It will allow interference of the Venture Capitalist in the decisions.

    This interference can be effective or it can affect the growth of the company, depending on the scenario. If the entrepreneur is someone who wants full control of the company, reconsider the choice of raising funds for your startup.

    Accountability

    An entrepreneur who raises capital has to be accountable. Depending on which source of raising he chooses, he needs to be accountable. The source or the Venture Capital can push and pinch for specific and exact usage of money.

    A business person has to iterate his ways in different scenarios. He/she needs to be experimenting with a product. In order to get the perfect product-market fit. In some cases “being accountable for the capital raised” can also reduce the experiments of an entrepreneur. Leaving no space or very little space for mistakes.

    Debt

    This can be seen as a subsection of the previous issue. Raising capital is debt. Some people might get overwhelmed by the thought of using others’ money. This heavy feeling of responsibility can disrupt the natural flow of an entrepreneur.

    Which also points out someone’s personal relationship with money. A person having a bad relationship with money will fear its responsibility. That responsibility rises manifolds if the money is a debt.

    When to Stop Raising Funds for your Startup?

    If you are through the hurdle of deciding to raise capital. Let us discuss when to stop your fundraising rounds. It is imperative to mention that you need to take professional advice on this matter. Investors write a cheque when they are compelled by your work. When raising capital, remember the time frame. Check these points to get some bookmarks.

    Ideal position –

    So, when you’ve managed to impress an investor, make sure you know the ideal condition. The ideal condition is to raise as much as you want to reach profitability. The reason behind this is that it allows you to stop raising for more rounds. It will lessen the hassle one needs to go through for another round of funding. Remember to stop with an ideal cash position in mind.

    Survival of Operations –

    When raising capital, think about your burn rate. You need to consider how many months you are planning your operations to survive. It can be a year to 18 months. This definitive time frame set a bar for raising capital. Even though different products and startups have different burn rates, making sure your burn rate is in check is helpful.

    The Growth Pace –

    If your company is in a good cash flow situation. Like, when the company is adding more customers and revenues and employees. When it is growing really fast. Then you should refrain from raising large funds. The reason is that if you raise 2 to 4 years of funds at this growth pace, then by the end of 2 years you would earn a similar amount by your own operations. There is a good chance you reach that cash by operations.

    So at that point, sitting on a huge debt is of no use. Checking your growth pace before taking financing decisions helps.

    Cash needs –

    It is always tempting to raise capital. To have surplus money than you actually may need. So it is important to remind yourself that there are harms too.

    First, raising capital is expensive and complex. If an entrepreneur is not ready to handle this hassle, it can be disastrous. Second, due to unpreparedness, you may never know the ideal position of raising, which can make you raise too much. This can be a worst-case scenario. Third, remember raising deprives focus.

    An entrepreneur’s main focus should be to provide value, anyhow. Raising money will get investors on board and this will take your arm and a leg. They might interfere with your vision too. So keeping these points in mind, you can set an ideal cash position for the company.

    How to find Finances when all doors seem to be closing on you?
    Though promising startups are founded on role business models and innovative products, a steady cash flow is also necessary to turn their dreams into reality, especially when the companies are in their fledgling stages. To gain a foothold in such a competitive market, startup funding is the lifeline…
    StartupTalkyLakshya Singh

    Conclusion

    We get to know with this enlightening article that raising capital is complex. The best money way is still the bootstrapped way. It is considered the smoothest. But when it comes to hacking growth and scaling your product, a VC can do wonders. It can provide you with a primary boost or a launchpad for flying.

    Nonetheless, that launchpad can also become the reason for your own perishment. Knowing how much you need, your burn rate of operations and the scale you want to achieve is crucial in setting a definitive goal for your fundraising. Having your vision and current situation intact in your head will go a long way in fixing this question.

    It is strongly recommended that you go and take the path of organic growth. That is, growing your business naturally should be preferred. Before going on a run for chasing capital and Silicon Valley dreams. You might need the right advice, the right homework and just the right negotiations to get to an ideal position. This is not rocket science but it is nothing sort of less than that.

    FAQ

    How long should a seed round last?

    A typical range seed round lasts between 12 and 18 months.

    How much traction is enough for investors?

    The “traction” that’s relevant for your current stage should be in the range of 0.1% to 0.5%.

  • How to Raise Fund for Startup in India?

    When it comes to a business the most significant thing is funding and if it’s a startup, funding becomes more important. The survival of a business hugely depends on it. In a startup, funding is important so that the business can meet its expenses, as the profit will be mediocre at first.

    Finance is the fuel needed to run any business. There are numerous stories of entrepreneurial ventures which could not survive despite having great potential tanking, due to a shortage of funding. Getting funds is especially challenging when a business is in the startup stage. Hence, it is important for emerging entrepreneurs to be aware of the various startup company funding options.

    According to a report, Indian startups raise a record $3.9 billion so far in 2019. So we have compiled a list of sources from where you can raise funds for startups, in India.

    Microlending
    Crowdfunding
    Line of Credit
    Equipment Financing
    Angel Investors
    Venture Capitalists
    Government Grants
    Peer to Peer Loans
    Business Credit Cards
    Bank and NBFC Loans

    Microlending

    When loans are given by individuals or a group of people instead of banks and other financial institutions, such loans are known as micro-loans and the technique is called microlending. Micro-loans can be a good source of startup funding for small businesses. Microloans are unsecured loans. The credit score of the borrower is a guiding factor for the lender; it helps in deciding the interest that the borrower would pay to the lender in addition to the original principal amount.

    Crowdfunding

    Crowdfunding
    Crowdfunding

    Using an online platform, individuals interested in raising funds for their initiative can make use of crowdfunding. The investor gets some form of equity or reward in exchange for the contribution. KickStarter, GoFundMe and Indiegogo are some of the most popular and top-ranked crowdfunding sites. Crowdfunding is a good startup funding process because it is easier to acquire than traditional bank loans.

    Line of Credit

    Once approved for a ‘line of credit’, the borrower gets access to a pool of money. But only when he actually takes out some amount i.e. borrows from the pool, he is subjected to the interest that would be charged. The benefit of this type of loan is the low-interest rate charged as compared to bank loans or NBFC loans.

    Equipment Financing

    As the name suggests, equipment financing involves machinery or some other item instead of monetary funds at disposal. The idea is to allow businesses to save money on purchasing equipment and use the same for other purposes. So equipment financing can be the funding option for startups that require equipment and machinery.

    Angel Investors

    Wealthy people who are interested in assisting the business owner through debt-free funding are known as angel investors. They ask for a stake in the ownership of the business and provide advises and suggestions from their own experiences. Such investors usually back early-stage startups that can generate a massive turnover in the future. So if you have a great business plan, then approaching angel investors can be one of the best ways to raise capital for the company.

    Venture Capitalists

    There are many venture capitalists that readily provides fund for a startup. People often use the terms venture capitalists and angel investors interchangeably without understanding that there are more than just subtle differences. Unlike angel investors, venture capitalists are proper firms aimed at helping businesses to develop. The venture capitalist plays an active role in running the business. Apart from purchasing stakes in the business, the firm has a say in the business’s decisions. There are two types of entities in such firms—‘limited’ partners who inject cash into the venture capitalists’ funds meant for assisting startups, and ‘general’ partners who work alongside the startup by engaging with the startup’s management in business-related decisions.

    Government Grants

    The central authority of the country also provides loans for startups in different sectors of the economy. In India, there are various schemes such as Credit Guarantee Scheme, MUDRA loan scheme, and Stand Up India scheme under which the Government provides funds to startups.

    Also, there are schemes introduced by the State Government of different states of India, like Rajasthan Startup Fest, Kerela State Self Entrepreneur Development Mission, Sarothi startup loan by the Govt of Assam.

    Peer to Peer Loans

    In P2P lending, people (excluding banks and financial institutions) lend to those in need of money. Now, this may seem like crowdfunding but there’s a significant distinction: In peer-to-peer lending, the borrower has to repay the original principal along with the interest accrued. This isn’t part of crowdfunding, where the investors may not necessarily pay money to the lenders in exchange for their contribution; it could be a reward exchange program as well.

    Business Credit Cards

    As the name suggests, business credit cards allow borrowers to access a pool of money with a credit limit for transactions. Credit cards are suitable for financing short-term needs and immediate requirements. Just like ordinary credit cards, the card owner is liable to be penalized if the borrowed amount is not repaid in full at the end of the billing period.

    Bank and NBFC Loans

    Lastly let’s talk about the traditional method of funding, the bank, and NBFC loans. Banks provide term loans, working capital loan,s and asset-backed loans. NBFCs provide business loans too. But the issue with most banks and NBFCs is that they offer unsecured loans to only such businesses that have been in business for at least 2 years and which are earning a specific amount of profit.

    While approaching someone for a loan for your startup, ensure that you have an excellent business plan. A business plan is the heart and soul of your initiative or project. It should cover the minute details, must be easy to comprehend, engaging, and enticing at the same time. Above all, it’s the attitude brimming with confidence and the ability to convince that would either make or break the deal!

    Conclusion

    If you are thinking about long-term sustainability then funding is highly recommended. Funding also helps you to explore the current market opportunities as well. Before going for funding, you need to understand what type of funding is actually needed for your business. The entrepreneur needs to be very careful while selecting the type of funding they are going to choose for their business.

    FAQs

    Can businesses use GoFundMe?

    To start funding for a business, people can use GoFundMe.

    What is Startup Funding?

    Startup funding means the amount of money required to start and build a new business.

    How many Startups are there in India?

    There are 61400 startups in India as of now.