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Tag: Pre-Seed Funding

  • Stages of Startup Funding – From Pre-seed to Late

    Funding is the act of providing resources to finance a need, program or project. Sources of funding include credit, venture capital, donations, grants, savings, subsidies and taxes. There are two types of funding:

    • Soft Funding
      This type of funding includes donations, subsidies and grants that have no direct requirement for return of investment. It is also known as crowdfunding.
    • Equity Crowdfunding
      Funding that facilitates the exchange of equity ownership in a company for capital investment via an online funding portal per the Startups Act, is known as Equity Crowdfunding.

    Funds can be allocated for either short-term or long-term purposes.

    Purpose of Funding
    Stages of Startup Funding

    Other Methods for Raising Money

    What is Startup Funding? All You Need to Know

    Purpose of Funding

    Value of Startup Funding Across India from 2015 to 2021
    Value of Startup Funding Across India from 2015 to 2021

    Businesses regularly seek funding. This funding can be for one of these three reasons:

    For Research

    This is most often allotted in the fields of technology or social sciences. This type of funding is granted on the basis of a project, a department or an institute depending on the scope of the research or the project. Organisations that require such funding normally have to go through competitive selections.

    For Launching a Business or Startup

    Entrepreneurs with a business concept need the necessary resources including capital to venture into the market. The size of the funding required by these businesses depends upon the nature of the business.

    For Investments

    This type of funding usually involves fund management companies that gather pools of money from various investors and use it to purchase securities. These funds generate returns through asset diversification. The main purpose of these funding activities is to pursue individual or organisational profits.

    Stages of Startup Funding

    Stages of Startup Funding
    Stages of Startup Funding

    A new business demands much more than a great idea. It needs dedication, discipline, hard work and most importantly funding to convert its great idea into a successful reality. As the business progresses and grows, it may require funding for expansions and research depending on the type of business. There are different stages of funding that respond to different needs at different stages of a growing business.

    Pre-Seed Funding

    This is the ideation stage. It is a time when the entrepreneur is working to bring the idea to life. That is why it is known as the pre-seed stage. Usually, the fund requirement at this stage is small and there are very limited and mostly informal channels available for raising money.

    • One way to raise capital is to self-finance. This can be accomplished by relying on personal savings or by mortgaging or selling real estate property for money.
    • The more common method is to borrow from friends or family members. The biggest benefit of this method is that there is an inherent level of trust between the entrepreneur and the investors.
    • Another method is to win the prize money/grants/financial benefits that are provided by institutes or organisations that conduct business plan competitions. Though not large, the amount of money is usually enough for the ideation stage. The challenge is that the business plan has to be approved by the judges.

    Seed Funding

    Seed capital is the investment made at the preliminary stage of the startup. This money helps the business in identifying and creating its roadmap and the direction in which the business needs to grow. To this end, the money goes towards identifying the market demands, preferences and tastes and then formulating a product or service. Seed funding is generally raised from

    • Bank or even Non-Banking Financial companies (NBFCs) in the form of loans.
    • Mentors, friends or family members.  
    • Crowdfunding
    • Angel Investors

    Venture Capital Funding

    This form of private equity financing is provided by venture capital firms for funds to startups and emerging companies that are deemed to have high growth potential and have demonstrated strong business operation acumen. Venture capital comes into the picture when the company’s products or services reach the market. This is a growth stage that further involves more rounds of funding.

    Series A Funding

    This is the very first round of VC funding that is primarily used for marketing, improving brand credibility, tapping new markets and business growth. The potential investors for Series A funding are-

    • Accelerators
    • Super Angel Investors
    • Venture Capitalists

    Series B Funding

    When a business reaches the stage of Series B funding, it means that the product has found a market and there is scope for growth in other markets as well. This type of VC funding is utilized to hire more staff, improve the infrastructure and expand the business beyond local borders. Potential investors for this type of funding are-

    • Venture Capitalists
    • Late-stage Venture Capitalists

    Series C Funding

    While there is no limit to the rounds of funding that a business can receive this round of business funding entails great caution. The more investment rounds, the more the business releases equity. The potential investors for series C funding are-

    • Late Stage Venture Capitalists
    • Private Equity Firms,
    • Hedge Funds
    • Banks

    Series D Funding

    This is a funding stage that is not very common for businesses. This type of funding allows entrepreneurs to raise money for special situations like a merger or if the company hasn’t hit its growth goal yet. The potential investors in this funding are the same as the investors in the Series C Funding.

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    Initial Public Offering (IPO)

    Number of IPOs in Public Markets of India from 2015 to 2021
    Number of IPOs in Public Markets of India from 2015 to 2021

    Initial Public Offering is the process of offering corporate shares to the general public for the first time. Growing startup businesses often use this process to generate funds for expansion and growth. There is a specific process for growing startups who decide to raise capital via the IPO route.

    • The business has to form an external public offering team comprising of underwriters, lawyers, certified public accountants and SEC experts.
    • Information regarding the company’s financial performance and its expected future operations has to be compiled.
    • An audit has to be conducted of the company’s financial statements that generates an opinion about its public offering.
    • The company, then, has to file its prospectus with the SEBI and determine a specific date for going public.

    An IPO has several other benefits to offer other than raising funds for a growing business. These are:

    • Additional funds can be generated through secondary offerings as the company already has access to public markets.
    • A public company is a very attractive place to work and attracts better talent.
    • Executives of the company can be partly compensated through stocks.
    • Mergers are easier for public organisations.

    Apart from all the known funding methods, there are some lesser-known but quick methods to raise money for a startup. These methods may not work for everyone but depend on the type of business operations. These are:

    1. Product Pre-sale: Companies like Apple and Samsung raised finance to continue operations by starting a pre-order campaign well ahead of the official product launch. It is an often overlooked and highly effective method to raise capital and improve cash flow.
    2. Selling Assets: This is a tough step to take but it is effective to meet short-term fund requirements. These assets can be bought back once the business is out of a crisis.
    3. Credit Cards: This is not the most effective way nor is it highly recommended. However, it is one of the most readily available ways to finance a business. The credit can be continued by making minimum payments, but, the interest rates and the costs on the cards can build very quickly. Carrying that debt can be detrimental to the business owner’s credit in the long run.

    Conclusion

    The various startup funding stages allow entrepreneurs to scale up their business operations at any stage of their business. This practice also allows them to identify the stage at which their company is operating and which potential investors might fund them for expansion.

    Also, this is a cyclic event as many startups that have grown successfully through funding might become investors in other startups as well.

    FAQs

    What are the stages of funding?

    The stages of startup funding are:

    • Pre-Seed Funding Stage
    • Seed Funding Stage
    • Venture Capital Funding Stage (Series A, B, C, and D)
    • Initial Public Offering (IPO)

    What is the pre-seed funding stage?

    It is a time when the entrepreneur is working to bring the idea to life. It is the stage of ideation which is why it is known as the pre-seed stage. The most common source of funding at this stage includes self-finance, family and friends, or grants from certain institutions.

    What is considered late-stage funding?

    Late-stage funding is meant for companies that have passed the phase of ideation, and product development, and are making sales. Late-stage funding is gained by companies that are growing and shows huge growth potential to investors.

  • 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

  • How to Calculate Valuation of Your Startup?

    In the competitive entrepreneurship world today, entrepreneurs are quite excited about adding value to their startups. It is one of the most essential things to do for founders as it helps in further equity and funding decisions. Quantifying the worth of a startup is the most complex task to do. There are several methodologies and approaches to determine the valuation of your startup. The worth of a startup depends on several factors:

    • The business idea of the Startup
    • Stage of the startup
    • Product Prototype
    • Market risks and competition
    • Technical Adaptability
    • Customer traction
    • Investors

    Let’s know about the approaches used by startup founders and entrepreneurs on how to calculate the valuation of your startup.

    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Mehul Sharma - Founder & CEO, Signum Hotels & Resorts
    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Pre-revenue start-up valuation may be a complicated endeavour. There are many factors to take into consideration, from the control group and marketplace traits to the call for the product and the advertising dangers involved. And a hard truth associated is that even after comparing everything, despite the only pre-revenue valuation formula, the first level you may get continues to be simply an ESTIMATE!

    The world of the start-up is a place full of enthusiasts. A start-up is initiated every 3 seconds around the world! Every big company you can think of started from a garage with a computer bought with savings money or some sort of gift. But not all start-ups share the same start.

    Business proprietors will wish for an excessive valuation, while pre-revenue investors might opt for a lower price that guarantees a larger go back on investment (ROI).

    So, how does pre-revenue start-up valuation evaluate with a mature commercial enterprise valuation?

    Unlike early-stage start-ups, a mature publicly-indexed commercial enterprise will have extra information and figures to head on. Regular circulation of sales and monetary statistics make it less difficult to calculate the price of the commercial enterprise. More often than not, early-stage startups are valued somewhere within the middle, which means founders don’t get quite the amount they anticipated, and investors pay higher than what they intended to invest.

    For most start-ups especially pre-revenue, Traction is one of the significant indicators for assessing the worth. The true story of a start-up can be brought into the daylight by taking a look at its effectiveness in the market, the number of users, and its growth rate.

    Estimating the actual worth of an unlisted startup before the seed funding is actually of equal importance to having a business idea while going in.

    There are various ways to estimate the current worth of a business, but only a few are used as a daily pill by entrepreneurs.

    The most basic method to assess the value is by analyzing the previous year’s Balance sheet. Under this method, the total debt and liabilities are subtracted from the aggregate value of assets owned by the business. This method is less complicated, easy to assess, and comes in handy.

    Although, the Balance sheet method does not provide the whole picture of the situation. The problem here is that this methodology considers the start-up in its current state and not how it’ll be in the future. Investors are inquisitive about the latter, and so, as an asset-based valuation doesn’t take that into account, this method has its drawbacks.

    Another method of assessing the valuation of a business is by calculating the EPS (Earnings Per Share). EPS is calculated by subtracting the Preferred dividends from the Net income and further dividing it by the average of outstanding common shares. For an individual investor, EPS shows the exact value of revenues and makes more sense.

    The valuation of a start-up is a complex task and there is no straight jacket solution or method to be put into use each time. Often, the valuation is calculated using a combination of ratios, and ordinal values.

    The angel capitalist Dave Berkus believes investors ought to be ready to envision the corporate breaking of $20M in 5 years. His technique assesses five important aspects of a start-up, namely, Concept, Prototype, Quality Management, Connections, and Launch plan. The Berkus technique is an easy estimation, typically used for IT start-ups. It is a good way to gauge value, however, because the market into account isn’t taken into account, it’s not going to provide the scope that some folks desire.

    Furthermore, a few more methods like EDITBA (Earnings before interest, taxes, depreciation, and amortization), top-line method, and GMV (Gross Merchandise Value) have been proven to provide significance for the estimations.

    EDITBA is another easy-to-use method that provides ordinal values by using the previous financial statements. Varied business segments face varied rates of tax payment based on the industry they fall into.  A business with a higher revenue may have an NPV (Net Present Value) lower than the one with lesser revenues due to the different industries they fall into.

    Another interesting method for assessing the value is the Top Line method, which is a reference to gross figures reported by a company, such as sales or revenue. This method gets the name because these are shown at the top of a company’s income statement and are kept aside for the reporting of revenue and or gross sales.

    GMV method ascertains the gross value of sales in the market. Under this, the gross value of the merchandise is calculated as the Sales price of goods with the number of goods sold. It shall be noticed that GMV is calculated in conjunction with net sales, which takes deductions into account.

    The first-time valuation of a start-up is bound to foresee at least a few mistakes. Hence, while evaluating the value of your start-up two big pitfalls one shall avoid are:

    1. Never assume a valuation is Permanent, i.e., after all, a startup is going to be valued at what investors are willing to speculate in it. Ultimately, it shall be kept in mind that the variables are at play, and perceive that no valuation, high or low, is ever permanent- or maybe even correct with certainty.

    2. A Valuation is never straightforward, i.e., even after getting a pre-revenue start-up valuation you’re happy with, it’s best to debate things in nice detail with potential investors simply to ascertain that everyone is on the same page regarding the way to proceed.

    It is rightly said that only a fool would make peace with the first valuation he gets of his business as there are complexities and human factors involved.

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    Vicky Jain – Founder, uKnowva

    Vicky Jain - Founder, uKnowva
    Vicky Jain – Founder, uKnowva

    Startup valuation is not an exact science. Factors can include the industry, the present market, the team’s credentials, and other forces that might be taken into account. The valuation of a start-up is the measure of how much investors think the company is worth right now. One of the simplest ways to measure the value of a startup is with the scorecard method. By weighing up parameters of success like team experience, competition, the strength of the product, etc.) subjectively, this method enables comparisons between a startup and other “average” startups within the industry and area. If the startup looks to have more than average qualities as per the calculations, then the chances of getting a higher valuation increases and so does the investment opportunity. There is another method known as the discounted cash flow method that approximates how much flow of cash a startup will produce over a long period of the term. By predicting this and calculating the expected return on the rate of investment, assumptions can be made about a start-up’s value.

    Sharan Goyal – Founder and Director, Crozzo

    Sharan Goyal - Founder and Director, Crozzo
    Sharan Goyal – Founder and Director, Crozzo

    Valuation in today’s day and age has taken a very sinister meaning. Valuations are through the roof, with no stopping in sight. I prefer to find a reasonable multiple of EBITDA or revenue (in the case of a cash flow negative company) and compare that to that of an existing business which has raised funds at a particular multiple. For example, a D2C business in the food space with a solid distribution network is often valued at 15-20 times forward revenue. It would be fair to assume that a company with a similar profile can be valued at a similar multiple.

  • 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.

  • Hair Originals Success Story – How Hair Originals made it to Shark Tank?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Hair Originals.

    Shark Tank has been making some noise in the country and in the business industry since it was announced in the year 2021. Originally released in December 2021, the Indian version of Shark Tank America has quickly grown to be one of the favorites of Indian startups, businesses, entrepreneurs, and other working professionals and individuals. Yes, we now get the opportunity to witness the Indian version of the most anticipated business reality show in the world. Naturally, when it started telecasting on Sony Television Channel, it created hype amongst the youth, and especially the young entrepreneurs.

    For those who are not aware of what Shark Tank is, it is a business reality show where entrepreneurs get funds from the investors, who are judging the business models presented by them if they like their business models. These investors are some of the biggest and most successful business people out there.

    If you are wondering why we are suddenly discussing Shark Tank India, then it is to introduce Hair Originals, a Gurugram-based premium natural hair extension products, and services company. The company has recently been famous as a brand recognized by Shark Tank India, where it also received funding.

    Here’s more about HairOriginals, its Funding and Investors, Founders and Team, Growth, Future Plans, and more.    

    Hair Originals – Company Highlights

    Startup Name Hair Originals
    Also know as HairOriginals
    Headquarters Gurugram, Haryana
    Industry Hair extension, Beauty and haircare
    Founders Jitendra Sharma
    Founded 2019
    Areas Served India and abroad
    Current CEO Jitendra Sharma
    Website hairoriginals.in

    Hair Originals – Latest News
    About Hair Originals
    Hair Originals In Shark Tank
    Hair Originals – Founder and Team
    Hair Originals – Startup Story and its Journey to Shark Tank
    Hair Originals – Funding and Investors
    Hair Originals – Growth
    Hair Originals – Future Plans
    Conclusion

    Hair Originals – Latest News

    January 25, 2022 – Hair Originals raises $30 mn in the pre-Seed funding round, where the company received funds from angel investments that came from marquee investors. After its success with the global B2B model, the company has now launched its D2C online platform.    

    About Hair Originals

    Before Shark Tank, Hair Originals have already spread their word across the world. With intricate customer market research and manufacturing excellence, Hair Originals Founder and CEO, Jitendra Sharma achieved something exceptional. They created a range of premium hair extensions and participated in the prestigious World Hair Congress in France. Famous hairstylist, Eric Maurice appreciated their work and fell in love with it. He decided to become the brand ambassador of Hair Originals in no time.

    The popularity of their hair extensions has now leapt all bounds. The products are now exported to luxury salons in 22 countries. The company reigned in the B2B sector by partnering with top luxury salons. There was a need for a customer-centric solution and a considerable demand for top-quality natural hair extensions. HairOriginals launched a Direct-To-Consumer platform that sells high-quality hair extensions at affordable rates. Mr. Jitendra Sharma set fair pricing and made HairOriginals, one of India’s top hair extensions brands.

    What makes HairOriginals Different from Other Brands?

    Starting from the luxurious market of Paris, HairOriginals became a popular hair extensions brand. Apart from the loyal customers, the company ties up with salon partners across the world. These salon partners provide free hair extension installation for the customers. HairOriginals is the official partner of prestigious hair training academies like Schwarzkopf and L’oreal. It is an official partner of Helder Marucci Master Class, a famous Brazilian stylist. There’s no doubt that 100% Remi Indian hair is amongst the most premium hair. By keeping this in mind, HairOriginals procures top-quality human hair from some south Indian temples. It ensures the best quality. They do not use any chemicals to process the hair.

    Along with quality, price plays a crucial role. It decides whether the hair extensions are worth buying or not. Existing brands were producing substandard hair extensions. As there was no competition back then, Mr. Sharma saw the market monopoly. The brands charge 2 to 3 times more from the customers. Their hair extensions were also of substandard quality. HairOriginals make their hair extensions with natural virgin Remi Indian hair known for its rich texture. It offers the best flexibility and freedom to color, style, and maintain.

    Hair Originals In Shark Tank

    India has always been one step ahead when it comes to taking natural ayurvedic care of hair. Indian hair is most sought-after by the cosmetic industry worldwide. It has a rich texture that is necessary for the best hair extensions. It won’t look like a big deal for a layman but Jitendra Sharma found a goldmine sitting there right in the open. HairOriginals & Shark Tank -two names are now lingering on the tongues of the masses. Mr. Jitendra Sharma jumped right into the battle of procuring natural hair strands. He soon emerged as a forerunner in the industry. And now he and his venture HairOriginal got featured in the latest edition of Shark Tank India.

    Hair Originals – Founder and Team

    HairOriginals Founder - Mr. Jitendra Sharma
    HairOriginals Founder – Mr. Jitendra Sharma

    Jitendra Sharma

    Mr. Jitendra Sharma is the founder and CEO of HairOriginals. His recent feature in Shark Tank has got all the people and media outlets talking about him and his venture. It raised the eyebrows of the sharks and got them intrigued with the sheer vision. As a 2008 IIT Delhi Alumni, Sharma has always pursued excellence. Jitendra Sharma has a dual degree in Chemical Engineering from IIT Delhi and has worked 11 years as a Precom Leader at TotalEnergies before founding Hairoriginals in September 2019. His 11 years of experience in the oil industry and exposure to global cultures helped him. He discovered India’s unorganized hair extension market and saw infinite opportunities.

    The company had another founder, Ashish Tiwari, who split up with Jitendra Sharma and stepped down from the Co-founder position, thereby leaving the company in December 2021. Tiwari left the company to co-found HairForever.

    HairOriginals nurtures a well-knit team of experienced in-house stylists that stand out with their industry-leading craftsmanship. Therefore, both the hair products and services of Hair Originals are of superior quality.

    Hair Originals – Startup Story and its Journey to Shark Tank

    Shark Tank shows have been a great success in their many overseas counterparts. This craze has now come to India and has become the talk of the town. The show consists of entrepreneurs who present their ventures to a group of investors called sharks. These sharks are some of India’s most celebrated entrepreneurs and industry leaders. They have been there and done that. Most of the sharks have built their own ventures from scratch and know what it takes to be a successful entrepreneur. Mr. Sharma got an offer to present their venture HairOriginals on the Shark Tank India show. He elaborated on how his company can revolutionize the fashion industry. No wonder he got attractive investment offers from all the sharks. They closed a pre-seed round which they will use for more intricate market research and faster growth. They also have an eye on pre-series A rounds. It will give a push to their partner salon programs and Direct-To-Consumer platform.

    Hair Originals – Funding and Investors

    HairOriginals has raised funding worth Rs 3 crore in its pre-Seed funding round via angel investments from marquee investors on January 25, 2022. This is the second funding that the company received after it was initially funded in the popular business reality show, Shark Tank India. The funding that the startup received is presently being channeled towards AR technologies. This will benefit real-time product experience before purchase, workforce expansion, and other back-end developments.

    Hair Originals – Growth

    The Hair Originals line of products is made from ethically acquired human hair. This has empowered and is empowering the women from various cities of India working in this particular segment. The products of Hairoriginals have been exhibited in multiple international events and exported across 22 countries including the top luxury salons of the US, Europe, and Africa.

    The Hair Original products were also positioned in the luxury segment, where it received numerous positive remarks from fashion critics at the World Hair Congress in France. Eric Maurice, a renowned celebrity stylist from France has come onboard to be the brand ambassador of Hair Originals.

    Hair Original boasts of being the global leader in processing and delivering 100% Natural Hair Extensions, which is made from virgin Indian remy (scalp sourced) hair with a huge number of consumers across the globe. Besides, numerous internationally renowned celebrity hair-stylists like Latil Pascal and Laurent Voicinet use Hair Original products for their shows.

    The global positive feedback that Hairoriginals receive from its customers across the globe and the support that it gets from its investors is the driving force in the expansion of its business.

    Hair Originals – Future Plans

    Before knowing what the future of hair extensions is, a little peek in history will amaze you. Hair extensions were used by women for thousands of years. There are some historic mentions that Egyptian queen Cleopatra who ruled the Ptolemaic Kingdom of Egypt from 51 to 30 BC, used to wear hair extensions.

    It wouldn’t be exaggerating to say that under the leadership of Mr. Jitendra Sharma, HairOriginals will reach the heights of success. The latest Shark Tank investment round will fuel their growth. It will also help them to put themselves on a global map. The company intends to expand its horizons by partnering with more high-end salons across the top countries. It will catapult its customer-facing platform to pull more customers. There’s no doubt that HairOriginals will change how people use hair extensions. Founder Jitendra Sharma knows that his company will revolutionize the global fashion industry. He has great confidence in the wide range of hair textures, colors, and lengths their hair extensions provide.

    With the launch of the D2C platform of Hair Originals, the goal of the company now is to make its premium products affordable for everyone. This the company aims to make feasible by cutting the cost of the middlemen. The founder and CEO, Jitendra Sharma said, “in the upcoming 2 to 2.5 years, our aim is to achieve a target of 100 Cr ARR.”

    Conclusion

    The rapidly growing fashion industry shows great potential for hair extensions. Fashion models, as well as top celebrities, use hair extensions. They are used by top hair stylists for music videos, fashion shows, movies, and whatnot. With such great exposure and need, it would be safe to say that hair extension are here to stay. They provide different installation types that only maximize their versatility. The Shark Tank investment round will give them the needed boost and global exposure. It will ease their growth and help them connect to a massive network of investors. It will play a crucial role in their growth.

  • Top 10 Startup Incubators and Accelerators in Sydney

    Sydney, the city with an incredible startup culture. When it comes to startup business, Sydney carries great tools for the growth of it. There are numerous amazing incubators around Sydney. As for new business, approaching a good incubator gets you some great benefits ahead.

    For a startup, you should always seek more opportunity for your business in early stage as much as you can. An early-stage help will take you to great heights and incubators are meant for potentials. Choosing the right potential incubator for your business becomes very tacky and requires some serious study.

    Through this article, we tend to ease that part for you. For those living in Sydney, we present some well-researched incubators that would work best with your startup business. These startup incubators are:

    Cicada Innovations
    BlueChilli
    PushStart
    ATP Innovations
    25fifteen
    Fishburners
    Springboard
    Tyro FinTech Hub
    Stone and Chalk
    Slingshot
    FAQ

    Cicada Innovations

    This tremendous startup incubator is established and shaped by Australia’s four leading universities which are; University of Sydney, Australian National University, University of technology and Sydney, and University of New South Wales. Cicada Innovations have been awarded with Global Incubator of the Year 2018.

    This startup incubator works for those companies which are involved in agriculture They offer,

    • Access to prototyping labs for testing your technology
    • Growlab and Medlab (Major programs)
    • Transform agriculture and healthcare sectors

    BlueChilli

    BlueChilli is quite famous around Sydney for its tremendous performance by investing, building and growing new tech startups. It has its headquarter in Sydney, San Francisco, Brisbane, and Melbourne.

    BlueChilli Website
    BlueChilli Website

    However, it usually works with non-technical investors, entrepreneurs and potential customers. BlueChilli observed that Sydney is quite behind when it comes to experienced developers and engineers for the commercialisation of the city. That’s why they work with the non-technical ones to provide them with proper advisory on the technical handles.

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    PushStart

    PushStart is a Sydney-based incubator for startups. community-based a three-month community based program that focuses on tech startups. PushStart mainly provides over $20,000 cash, office space and 8%-10% for common equity services. It accepts around 10 teams and includes founders of Spreets, Freelancer, DesignCrowd and Posse.

    Besides it provides seal offers like Investors Day as to present to the angels and VCs. PushStart is an incredible incubator startup that provides tons of benefits to the startup.

    ATP Innovations

    ATP Innovations is quite a prominent incubator around Sydney and other places as well. It holds a well-established and experienced business builder’s team. ATP Innovations works on the highest growth and enhances the chance of success for the business to make them more prominent and transform into a technology business.

    This startup incubator works with around 80 businesses and raised over $121 million through it. They focus more on these initiatives,

    • Developing new products
    • Building strong team
    • Growing revenue
    • Selling and accessing businesses
    • Raising capital

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    25fifteen

    25fifteen has always been amazing with its work performance as an incubator. For a long time, it has been serving startups and making their business grow profitably. They mainly focus on addressing issues related to Australia, Sydney and creating and building some successful businesses.

    25fifteen has formed a great team filled with experienced and great entrepreneurs and veterans of industries. They also have a vast network connection of business and access to capital.

    They connect with the co-founders or different internal and external projects to build up a successful startup business with good profitable gains.

    They usually work with external entrepreneurs who have rich knowledge on projects which are founded internally in the business. This is done after the training gained by the business on the certain project. 25fifteen is an amazing incubator with great team management and results in some great outcomes.

    Fishburners

    Fishburners comes with great space for the startup to grow. It mainly focuses on assistance with the working space so that the startup could get its time and space to develop smoothly.

    They offer certain working spaces by different slots based on daily, full-time or part-time, whatever suits the customers and clients. Fishburners work through a network formation and certain motivation so that the business would grow at great heights.

    Fishburners usually formulate a communal network through different entrepreneur and businesses working space, for sharing their experiences as well as skills and qualities. This ensures that the startup gets through different regions of marketing.

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    Springboard

    Springboard Enterprises also known as SBE usually works for the female entrepreneurs who seek investment and support for their startups. It mainly focuses on providing the right guidance and advisory to the female entrepreneurs for the development of their startups. It connects through certain networking events to provide facilities for strategy boost.

    Springboard helps female entrepreneurs to get proper funding or investment for the advancement of their business and reach the network of businesses, investors, women business leaders, and domain experts. It tends to make those startup companies grow which are led by women along with their team of innovators, investors and influencers.

    Tyro FinTech Hub

    YBF Website
    YBF Website

    Tyro FinTech Hub (Now known as YBF)  is quite famous and prominent around the whole of Australia. It is located at the core heart of Australia, Sydney. It works with several startups companies to make their growth remarkable in the market.

    Tyro FinTech headquarter is located in Sydney’s financial district around the modernist building.

    It looks after its clients very adequately and comes out with great results. The outlook of Tyro FinTech Hub is very fascinating with the architect-designed fitout and the floorplan.

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    Stone and Chalk

    Stone and chalk are known for their tremendous performance in the market. It mainly focuses on Fintech startups and results with great success. Stone and Chalk was founded in the year 2015 and located in the core of Sydney. It offers several time-spaces such as full-time and part-time incubation.

    Stone and chalk focus on those startups from Australia and Asia. For a long time, numerous companies have been a part of this incubator program and reach success with incredible performances.

    Slingshot

    Slingshot is a very prominent incubator around Australia, Sydney. It mainly works for the corporate sectors of a startup. It offers several corporate programs for the company to develop with some incredibly ingenious ideas and come out with great results. Slingshot provides the right advisory and mentors so that the startup business could get guidance through an experienced panel. It also gives several opportunities to work with the large Australian corporates for investment and marketable purposes.

    FAQ

    What’s a startup incubator?

    A startup incubator is a collaborative program whose purpose is to help new startups that are at a very early stage to grow and succeed.

    How do incubators help startups?

    Incubators are an organization, platform or team of experienced professionals that helps startups bootstrap during its early stages and often provides mentoring, guidance, and co-working space‌‌‌‌.

    How do startup accelerators make money?

    Startup accelerators offer seed money in exchange for equity in the company.

    Conclusion

    For the initial stage of any startup, proper guidance is very important. It keeps modifying your startup to beat up with the competitors and build your name in the market. Incubators provide you with these facilities and guidance. Through this article, we provided you with the top startup incubators in Sydney. This would be very beneficial for you to make a reasonable choice.

    Sydney is known for its incredible culture to encourage these startups. Therefore, this city has some great startups to go for.