Thinking How To Raise Capital In India? Follow These Sources…!

As an entrepreneur, you must have experienced (or experiencing) the enormous need for capital. Raising capital is certainly one of the most challenging aspects of growing a business. Preparation and planning while maintaining your patience and energy level is imperative to success. A common question that we often come across is how to raise capital in India.

Well, we all know that India is a business-friendly nation with investors from around the world eying the Indian market. Now there are various ways you can pool money for your startup provided you have the right idea and execution plan. Here is a list of some of the most common funding sources in India that you can explore. Try them sequentially or you can even jump on to the one that you think is most suitable for your startup.

Common Business Funding Options In India

1. Friends And Family

This is the first door we usually knock to get some initial funding for our business. No doubt, the capital won’t be large enough. But if your close ones invest generously, you can definitely give a nice kick-start to your dream startup. Those who believe in you will definitely want to keep some faith in your idea as well, won’t they?

However, it is quite a delicate option and lack of transparency may create complications which might influence you personal relations too. So try to keep your business dealings as transparent as possible. Also make sure that you are not doing any injustice while repaying the loan or profit (whatever is the nature of the partnership).

2. Crowdfunding

This is a popular funding source that is increasingly becoming a preferred choice among entrepreneurs. In this age of internet, the concept of crowdfunding has emerged as a wise capital raising strategy. Instead of asking huge capital from people, you are reaching out a wide range of audience and asking for a small amount of money. Thereby no one is forced to spend huge but you are making a significant collection.

3. Incubators

Business incubators are firms that take the initiative of promoting small, potential businesses with a selfless attitude. They fulfil the fundamental requirements of a startup such as office space, capital, networking, management trainings and other services. They primarily focus on startups and early stage businesses to ensure their growth and success. If you are planning to set your business off the ground, this is a great option to consider.

4. Angel Investors

Angels are wealthy individuals who work either individually or as a network. You must have gone through the success stories of WhatzApp, Facebook and others. The stories give a clear sign of the rising trend of angel investments. They usually invest between $ 25,000 to $ 100,000 but it may go beyond in certain investments. They invest in startups or early-stage companies in exchange of a percentage share in the equity. A unique idea, scalable model, smart team, great market traction, etc. are a must to convince an angel.

5. Venture Capital

Here comes the King – the most powerful of all funding options. Venture capitalists are professional investors willing to make high-risk investments in potential startups. The capital size they offer is the biggest of all though getting access to that is a challenge. They invest where they see profit. Once the investment tenure is over, they take their share of profit and exit the venture. If you can attract a VC, you don’t need any other investor.

Conclusion

These are some of the common funding options in India that you must look into. For more information regarding how to raise capital in India, feel free to visit Merger Alpha.

Good luck!

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Raise Capital In India From These Active Venture Capital Firms

Venture Capital Raising In India

Capital is the most crucial element of a business as all other elements are dependent on it. If you are planning to raise capital in India for your dream startup, you are in the right place. Here is a list of some of the most active venture capital firms in India. It includes the names of both local and global investors that have played pivotal role in the success of many startups such as Flipkart.

So which all funding options have you tried till now? If you have an existing investor for your business, it will be much easier for you to convince a VC now. Venture capitalists, typically, prefer to invest in startups that already have investors chasing them. This gives a sense of security no matter how desperately they want to invest in risky startups.

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Raise Capital In India

Choose From These Investors To Raise Venture Capital In India

Matrix Partners

● Location – Mumbai
● Industry – E commerce, Mobile, Software, Enterprise Software, Financial Tech and SAAS.
● Investment – seed and early stage.

Jumpstart Ventures

● Location – Bangalore
● Industry – Internet, E commerce and Software.
● Investment – early, later stage and Debt financing.

Light Speed Venture Partners

● Location – New Delhi
● Industry – Software, Enterprise Software and Mobile.
● Investment – seed, early, later stage investments, Private Equity, Debt Financing and Grants.

Bessemer Venture Partners

● Location – Mumbai
● Industry – Mobile, Software, Enterprise Software.
● Investment – seed, early and later, Private Equity and Debt Financing.

Battery Ventures

● Location – Mumbai
● Industry – Software, Analytics and Enterprise Software.
● Investment – seed, early, later stage, Private Equity and Debt Financing.

Canaan Partners

● Location – New Delhi
● Industry – Biotech, Software and Healthcare.
● Investment – seed, early and later stage investments along with Private Equity and Debt Financing.

Accel Partners

● Location – Bangalore
● Industry – Infrastructure, Internet and Consumer Services, Cloud Enabled Services and Mobile Software.
● Investment – growth stage investments.

Band of Angels

● Location – Mumbai
● Industry – Healthcare, Wellness and Software.
● Investment – seed, early and later stage investments.

New Enterprise Associate

● Location – Bangalore
● Industry – Looks for startups dealing in Mobile, Biotech and Software.
● Investment – Seed, early, later phase, Private Equity and Debt Financing.

Helion Venture

● Location – Gurgaon and Bangalore
● Industry – Mobility, Online Services, E commerce, Enterprise Software, etc.
● Investment – early to mid-stage.

Conclusion

These investors in India differ in their choice of industry and time of investment. So it is best to find a suitable investor who is interested in your industry as well as the stage of your startup. However, the suitability along will not be enough to get you the capital. You must have a complete package of tools that make a startup look attractive to an investor. Some of the vital tools include an innovative idea, a great team, a scalable business model, a strong value proposition, a working model of your plan, etc.

For more information on how to raise capital in India, feel free to visit MergerAlpha.

Good luck!

Thinking How To Raise Venture Capital In India? Avoid These Mistakes

Raise Venture Capital In India With Perfection

Are you thinking how to raise capital in India? Oh wait! Is that venture capital you are looking for? Great! Indian VC industry is expanding fast! But the mighty investors are a tough nut to crack. Yes, we are talking about venture capitalists who can push your business to successful heights only if you show them the potential. They are helpful and extremely generous but only when you tell them about a billion dollar idea. One wrong move and they are miles away from you.

No worries, you can always learn from your mistakes. But it is wiser to learn from mistakes that other people make so that you do not repeat it. Sounds reasonable, right?

Learn about these common mistakes that entrepreneurs often make while raising venture capital. If you really have a billion dollar idea, it is worth reading them to avoid any loophole.

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Mistakes That You Must Avoid To Attract Venture Capital In India

1. No Clear Strategy

You need to have an objective in mind and to fulfill that you need a clear strategy. Remember, a business cannot survive without a successful strategy. Your first pitch should speak about that in front of the investors so that they give you some credibility. Having a definite mission and vision is critical for any entrepreneur to prove the authenticity of the business. You must know the milestones you need to achieve and what you need to reach there.

2. Chasing The Wrong Investor

As a first-time entrepreneur, you must value each second of your life. Make sure you choose you investor carefully and then start chasing or else, it will only be a waste of time, money and energy – your assets. Visit the investors’ website and gather information about them. Know which sectors they are interested in or which stage of development they look for. Are they local or global? Know about some of their portfolio companies as well. Once the research is over, look for an opportunity to meet a suitable investor.

3. Wrong Timing

There are many investors interested in high-potential seed stage startups. However, you must not overlook the importance of other funding sources like business incubators, crowdfunding, angel investors and others. Remembers, venture capitalists are more inclined towards businesses that have already raised capital earlier or have existing investors. They consider them more reliable so if possible, you must try out the other options as well. By the time you reach the growth stage, it will be much easier for you to attract venture capital.

4. Wrong Approach

The way you approach an investor can significantly influence their decision. Avoid making cold calls or sending casual emails. Instead, look for a strong referral as this is a well known approach that investors have long been responding to. Boost your social and professional networks, meet new people, talk to them about your business and fund raising campaign. You never know who, someday, introduces you to the right VC.

Conclusion

Avoid these mistakes you will be in a much better and desirable position. For more information on how to raise capital in India, feel free to visit http://mergeralpha.com.

Happy fundraising!

Raise Venture Capital In India From These Renowned Investors

Raise Venture Capital In India

For entrepreneurs looking to raise capital in India, the venture capital industry is becoming a lucrative option. The Indian market is rapidly getting flooded with local and global venture capital firms willing to invest in growing markets.

If you too are planning to raise fund for your startup in India, here are some of the most active investors to look for.

Most Active Investors in India Offering Venture Capital

Matrix Partners

  • Location – Mumbai
  • Make seed and early stage investments.
  • The investors look for innovative ideas in E commerce, Mobile, Financial Tech, Software, Enterprise Software and SAAS.

Helion Venture

  • Location – Gurgaon and Bangalore
  • Makes early to mid-stage investments.
  • Invests in sectors like Mobility, Online Services, E commerce, Enterprise Software, etc.

Jumpstart Ventures

  • Location – Bangalore
  • Makes early, later stage and Debt financing.
  • It prefers to invest in Internet, E commerce and Software.

Light Speed Venture Partners

  • Location – New Delhi
  • Prefers seed, early, later stage investments along with Private Equity, Debt Financing and Grants.
  • The company invests in Software, Enterprise Software and Mobile.

Bessemer Venture Partners

  • Location – Mumbai
  • Makes seed, early and later stage investments along with Private Equity and Debt Financing.
  • Prefers startups dealing in Mobile, Software, Enterprise Software.

Battery Ventures

  • Location – Mumbai
  • Makes seed, early and later stage financing along with Private Equity and Debt Financing.
  • The firm mainly invests in Analytics, Software and Enterprise Software.

Canaan Partners

  • Location – New Delhi
  • It usually makes seed, early and later stage investments along with Private Equity and Debt Financing.
  • The company prefers to invest in Biotech, Software and Healthcare.

Accel Partners

  • Location – Bangalore
  • It prefers growth stage investments.
  • The firm invests in Infrastructure, Internet and Consumer Services, Cloud Enabled Services and mobile software.

Band of Angels

  • Location – Mumbai
  • Makes seed, early and later stage investments.
  • Primarily invests in healthcare, wellness and software.

New Enterprise Associate

  • Location – Bangalore
  • Prefers seed, early, later phase investments including Private Equity and Debt Financing.
  • Looks for startups dealing in Mobile, Biotech and Software.

Conclusion

Before you chase any of these investors, you must have all things ready in place. A unique business idea, a great team, a scalable business model, a strong value proposition, etc. are some of the very basic things that VCs look for.

Another easier way to get access to a suitable investor is becoming a part of an intelligent network like Merger Alpha. It is a Singapore-based M&A platform that bridges the gap between potential ideas and investment funds that together results into a flourishing business.

For more information, feel free to visit MergerAlpha.com.

Good luck!

9 Characteristics That Can Help You Raise Venture Capital

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Raise Venture Capital in India

Have you ever wondered why some people planning to raise capital in India fail despite having a brilliant business idea? It is because idea alone can’t help you raise capital. You need to have certain potential characteristics in you that can help the investors see you as a promising entrepreneur worth their investment. Here’s a list of some of the basic qualities that every entrepreneur aiming to raise venture capital must have.

Characteristics That Can Help You Raise Venture Capital

1. Focus

The moment you realize that you are born to be an entrepreneur, focus becomes your biggest strength. The moment you lose your focus, you lose your goal. So keep your eyes on the goal no matter how challenging the path is. This is the only way you can overcome obstacles.

2. Confidence

Confidence can help you get noticed; it can help you turn any challenging situation into your favour. You can become a great leader who knows how to direct the team. Moreover, your confidence will also help investors to rely on your idea and foresee a good ROI.

3. Communication

Communication is one of the most crucial aspects of a successful business. The more you meet new people and communicate with them, the higher is the chance of your getting access to a suitable investor. It is only through effective communication that you can convince people and widen your scope of reaching out to new investors.

4. Persistence

The route to owning a successful business isn’t easy but if you stay focused on your goal and keep trying, nothing can stop you. As an entrepreneur, you must have the tenacity to deal with whatever is there in between you and your goal.

5. Patience

Patience is the key weapon to handle rejection from investors. The more you are patient, the more you become resilient and this keeps you going till your dream is achieved. Patience and perseverance go hand in hand in the journey to raise capital for a business.

6. Physical And Mental Stamina

A sound health is the key to ultimate happiness in both social and professional life. Your health can make or break your dreams so it really matters how much you are taking care of yourself. If you do a research, you will find that majority of successful entrepreneurs have been maintaining a good health through regular exercise and meditation. This not only keeps them energetic all day long but also enables them to take quick and correct decisions.

7. Ability To learn From Mistakes

Learning from our mistakes is a natural human tendency. However, you being an entrepreneur must incorporate it in yourself even more. Failure isn’t there to stop you from achieving – it is there to help you achieve in the best possible way.

8. Daring

You must have the courage to take actions. If you think you need venture capital, start looking for a suitable investor soon or else there are others to grab the opportunities. If you want to be an achiever, you must act to achieve.

9. Realistic Expectations

Realistic expectations not only keep you grounded but also enable you to deal more confidently with investors. If you think reaching a particular milestone won’t be possible at this point, let it be. There’s nothing wrong in it. This will not only help you stay hopeful but will also leave a positive impression on others.

Conclusion

Today, there are thousands of entrepreneurs looking to raise capital in India, each with their on set of strengths and weaknesses. The ultimate victory lies in learning from your mistakes so that you can come up as a better entrepreneur ready to grab investors’ attention.

For more valuable information on venture capital, feel free to get in touch with us at Merger Alpha.

How To Raise Capital In India? Chase These Investors…!

 

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Raising Venture Capital In India

Any challenge comes with opportunities that enable you to overcome it, provided you prove your potential at the right place at right time in front of the right person. If you are thinking about how to raise capital in India for your newly-started business, all you need is to identify the most suitable fund-raising options and start working on those diligently. The most common sources of business capital in India include your personal fund, friends and family, incubators, crowdfunding, angels and venture capital.

Among these, venture capital is definitely the most powerful source as it can generate the maximum amount of capital that can help you grow and expand your startup. Below are some of the most active venture capital firms along with their industry and stage preference that will help you find the right venture partner and set your business off the ground.

Top Venture Capital Firms In India

Canaan partners

Location – New Delhi

Industry – Industry – Healthcare, Biotech, Software.

Stage – Seed, early, later, Private equity and Debt financing.

Band Of Angels

Location – Mumbai

Industry – Healthcare, Software and other sectors.

Stage – Seed, early and later.

Bessemer Venture Partners

Location – Mumbai

Industry – Mobile, Software and Enterprise Software.

Stage – Seed, early and later.

Accel Partners

Location – Bangalore

Industry – Cloud enabled services,  Mobile Software, Internet and Consumer Services and Infrastructure.

Stage – Growth stage investment.

Helion Ventures

Location – Gurgaon and Bangalore

Industry – Outsourcing, Enterprise Software, Mobility, E-commerce and Online Services.

Stage – Early to growth stage investments.

LightSpeed Venture Partners

Location – New Delhi

Industry – Software, Enterprise Software and Mobile.

Stage – Seed, early and later stage vc financing, Private equity, Debt financing and Grants.

Matrix Partners

Location – Mumbai

Industry – Software, Enterprise Software, Mobile, etc.

Stage – Seed and early stage investments.

New Enterprise Associates

Location – Bangalore

Industry – Mobile, Software and Biotech.

Stage – Seed, early and later stage investments, Private equity and Debt financing.

Jumpstart Ventures

Location – Bangalore

Industry – Internet, Software and E-commerce.

Stage – Early and later stage, Debt financing.

Nexus India Capital

Location – Mumbai

Industry – SAAS, Business Consumer Services, Mobile, Consumer Internet, etc.

Stage – seed, early and later.

Conclusion

Raising venture capital is challenging but you can still experience a smooth sail if you have all the prerequisites ready with you to convince a vc. Some of the key elements any of the above investors would look for include a unique business idea, a smart and intelligent team, an innovative business model, a strong value proposition, a sizable and scalable market and of course the right approach.

However, if you can somehow finance your company to a certain extent without the help of venture capital, it can be a great driving force for your future venture partners. So try to explore all other possible options before approaching a VC.

If you have any more queries about how to raise capital in India, feel free to visit Merger Alpha.

Good luck!

Planning To Raise Capital In India For Your Tech Startup? Avoid These Mistakes!

With technological innovations touching new heights, it isn’t surprising to see a VC getting attracted to the industry. And, when it is India, one of the fastest emerging software superpowers in the world, you can’t wrong with a hi-tech idea as there are countless potential investors awaiting a lucrative investment opportunity. So if you are planning to raise capital in India, there’s nothing wrong in building a strong strategy for fundraising, but, there are certain fine things that can emerge as big mistakes if neglected. As a result, you may have to spend more time and effort finding capital for your startup.

Here are some mistakes that you should avoid while raising venture capital in India.

Capital Raising Mistakes You Must Avoid

1.  Not Considering Fundraising As Optional

There are few achievements in life as satisfying as raising capital for your own dream startup. Now despite the fact that capital is one the major prerequisites for a successful business, you should still consider fundraising as an optional thing and not compulsory. You will be amazed to know that the very idea can form the base for a strong and attractive business.

Try to go as far as you can without the help of any investor and you never know when a potential investor might start chasing you! So which sounds more exciting – you chasing an investor or an investor chasing you? You know the answer, right?

2.  Raising Very Little Or Too Much

How much is too much or how little is too little is a big question that has forever threatened entrepreneurs around the world. No doubt the value is directly related to the outcome of your business valuation, there is still some amount of probability that works on both sides.

Always remember that you are running a newly-started business which still has a lot to see such as new employees, new equipment or maybe, a new office too so there is no crime in securing some extra cash that can cover up these essentials. Similarly raising too much capital can again lead to unwanted expenditure as it is quite obvious that where there is money there is expenditure. You have to remember that you are raising your business with other people’s money and you have to return the profit as per the amount you are raising, so a balanced approach is a must.

3.  Chasing The Wrong Investor

When you are planning to raise capital in India, it isn’t just the capital that you are running after. There are many more additional things that an investor should be able to offer you such as guidance on management and finance, valuable opinion during critical decision-making, sharing invaluable contacts and helping you boost your networking. Keeping your arms open for dumb money is not always a good idea so look for investors who are familiar with the industry you are dealing with so that you can reap maximum benefits from the partnership and accelerate the growth of the business.

4.  Choosing A Wrong Time

There is always a right time for everything you do, be it flying a kite or chasing a VC. Before you start, do a proper research on the VC industry to know the time of the year when the VCs are most active. Keep your eyes on the latest news updates and on social media to track the investors activity and figure out if it is the right time to chase them.

Moreover, every VC firm has its own preference regarding the stage of investing – some prefer to invest at seed stage while some prefer to invest a later stage. At the end of the day, you may not want to spend a whole year in chasing and not making it to the next level.

Conclusion

These are some of the very common mistakes that you can avoid only by playing little smart. After all, it is all about showing a VC that your startup is just the right thing they are looking for and it is only possible when you show the right idea to the right person at the right time at right place.

For more information on how to raise capital in India, feel free to get in touch with us at Merger Alpha.

Good luck!