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Funding

The first step in finding the right funding solution for your business is understanding what’s available to you. That’s what this guide is here for. We’ll explain everything you need to know about small business funding including when to start looking for financing, the difference between equity and debt financing, and some of the top options from traditional small business loans to more creative funding solutions, like crowdsourcing.

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There are multiple sources of funding available for startups. However, the source of funding should typically match the stage of operations of the startup. Please note that raising funds from external sources is a time-consuming process and can easily take over 6 months to convert.

Ideation/
Pre-Seed Stage

This the stage where you, the entrepreneur, has an idea and are working on bringing it to life. At this stage, the amount of funds needed is usually small.

Validation/ Seed Stage

This is the stage where your startup has a prototype ready and you need to validate the potential demand for your startup’s product/service.

Early Traction / Series A Stage

This is the stage where your startup’s products or services have been launched in the market. Key performance indicators such as customer base, revenue etc. 

Scaling/ Series B & Above Stage 

At this stage, the startup is experiencing fast rate of market growth and increasing revenues. 

Initial Public Offering / Exit

Initial Public Offer (IPO) refers to the event where a startup lists on stock market for the first time.

BUSINESS & REVENUE MODEL

FINANCIAL MODELING & VALUATION

CONNECTING WITH INVESTORS

VIRTUAL CFO

SERVICES

INVESTMENT BANKING SUPPORT

PITCH DECK & ELEVATOR PITCH 

DUE

DILIGENCE

PRE & POST FUNDING

COMPLIANCE

EXIT STRATEGY

& IPO ASSISTANCE

AGREEMENTS & TERM SHEETS

Business Plan

Let us build a professional Business Plan for you. If you already have one, we can give it a makeover.

Pitch Deck

Killer Pitch Deck to articulate your value proposition best. If you already have one, we can give it a makeover.

Funding

We can also connect you to sources of investment and thereby give wings to your dreams.

Let's Take You Through The Process 

1. We Assess Funding Readiness

2. We Help You Refine Your Business & Revenue Model

3. We Help Prepare Investment Deck & Elevator Pitch

4. We Connect With Right Investors & Stake Holders

Let us help you choose right!

Your Funding Questions Answered Here

Why is Funding Required?


A startup might require funding for one, a few, or all of the following purposes. It is important that you, as an entrepreneur, are clear about why you are raising funds. You should have a detailed financial and business plan before you approach investors.

  • Prototype creation, product development, website/app development
  • Team hiring
  • Legal and consulting services for your startup
  • Raw materials and equipment
  • Licenses and certifications
  • Working capital
  • Marketing and Sales
  • Office space and other admin expenses




What are various types of Funding?


  • Equity Financing
Angel Investors, Self-financing, Family and Friends, Venture Capitalists, Crowd Funding, Incubators/Accelerators
  • Debt Financing
Banks, Non-Banking Financial Institutions, Government Loan Schemes (CGTMSE, Mudra Loan, Standup India)
  • Grants
Central Government, State Governments, Corporate Challenges, Grant Programs of Private Entities
  • Convertible Debt
  • SAFE Instruments




What are various Stages of Startups Funding?


There are multiple sources of funding available for startups. However, the source of funding should typically match the stage of operations of the startup. Please note that raising funds from external sources is a time-consuming process and can easily take over 6 months to convert. Ideation/Pre-Seed Stage This the stage where you, the entrepreneur, has an idea and are working on bringing it to life. At this stage, the amount of funds needed is usually small. Validation/Seed Stage This is the stage where your startup has a prototype ready and you need to validate the potential demand for your startup’s product/service. This is called conducting a ‘Proof of Concept (PoC)’, after which comes the big market launch. To do this, the startup will need to conduct field trials, test the product on a few potential customers, onboard mentors, and build a formal team. Early Traction/Series A Stage This is the stage where your startup’s products or services have been launched in the market. Key performance indicators such as customer base, revenue, app downloads, etc. become important at this stage. Funds are raised at this stage to further grow user base, product offerings, expand to new geographies, etc. Scaling/Series B & Above Stage At this stage, the startup is experiencing fast rate of market growth and increasing revenues. Initial Public Offering Initial Public Offer (IPO) refers to the event where a startup lists on stock market for the first time. Since the public listing process is elaborate and replete with statutory formalities, it is generally undertaken by startups with an impressive track record of profits and who are growing at a steady pace. One of the benefits of an IPO is that a public listing at times can increase the credibility of the startup and be a good exit opportunity for stakeholders.




What are the various sources of procurement of Funding?


Bootstrapping/Self-financing: Bootstrapping a startup means growing your business with little or no venture capital or outside investment. It means relying on your own savings and revenue to operate and expand. This is the first recourse for most entrepreneurs as there is no pressure to pay back the funds or dilute control of your startup. Friends and Family: This is also a commonly utilized channel of funding by entrepreneurs still in the early stages. The major benefit of this source of investment is that there is an inherent level of trust between the entrepreneurs and the investors Business Plan/Pitching Events: This is the prize money/grants/financial benefits that is provided by institutes or organizations that conduct business plan competitions and challenges. Even though the quantum of money is not generally large, it is usually enough at idea stage. What makes the difference at these events is having a good business plan. Incubators: Incubators are organizations set-up with the specific goal of assisting entrepreneurs with building and launching their startups. Not only do incubators offer a lot of value-added services (office space, utilities, admin & legal assistance, etc.), they often also make grants/debt/equity investments