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!

Know Them Before You Raise Capital In India

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Are you dreaming to raise capital in India for your newly-started business? If yes, it is indeed a wise decision as the startup ecosystem in India has already started grabbing the attention of local and global investors with its ocean of talent and innovative ideas. If your idea has the potential to form the base for a huge revenue, you can easily find investors peeping from here and there.

When it comes to capital raising, there is simply no substitute to networking – in fact, consistent networking. Hoping that you are already doing your best in that sphere, we are here with a list of some of the top venture capital firms in India about whom you must gather some basic knowledge so that you can save your precious time by chasing the right investor.

Venture Capital Firms In India

Blume Ventures

Founders: Karthik Reddy, Sanjay Nath
Industry Mobile, Internet
Seed and early stage investments
Fund size $ 50K – $ 250K

Sequoia Capital

Founder – Don Valentine
Industry – Healthcare, Energy, Enterprise, Financial, Mobile and Internet.
Seed, early and later stage financing
Fund size – 1M – 100M

Inventus Capital Partners

Headquarter – Menlo Park, CA
Industry – Finance, Mobile, Advertising.
Seed, early and later stage financing
Investment size – $ 0.25M – $ 10M

IDG Ventures

Founders – Sudhir Sethi, Manik Arora, TC Meenakshisundaram
Industry – Software, Security, E commerce
Seed, early and later stage financing
Investment size – $ 1M – $ 10M

Steadview Capital

Headquarter – Hong Kong
Industry – E commerce
Early and later stage investments

Warburg Pincus

Headquarter – New York, NY
Seed, early, later stage and PE investments.
Industry – Biotechnology, Ecommerce, Software

SAIF Partners

Headquarter – Hong Kong
Seed, early, later stage and PE investments
Industry – E commerce, Advertising, Software

Axon Partners Group

Headquarter – Madrid
Seed, early and later stage investments.
Industry – Security, Games and Software

Ascent Capital Advisors

Investment size – $ 10M – $ 30M
Early stage investments
Industry – Infrastructure, Healthcare, Technology, E commerce, Financial Services.

Bain Capital Private Equity

Investment size  – $ 5M – $ 1B
Early and later stage financing.
Industry – Energy, Technology, Media, Telecom, Financial and Business Services, Consumer, Healthcare.

SeedFund

Investment size – INR 1 to 5 crore
Makes early stage financings
Sectors – Telecommunication, Internet, Mobile, Media, Consumer, Retail, Technology.

Unitus Seed Fund

Investment size – INR 50 lacs to INR 1 crore
Makes Seed stage financing.
Sectors – Agriculture, Healthcare, Mobile commerce, Retail and Distribution, Water and Energy, Education.

Conclusion

There you go. The above list of investors should give you a fair knowledge of some of the most active VCs eyeing the Indian startup industry across various stages of development in various sectors. So depending on your suitability, you can target the right investor and start chasing them diligently across various platforms like social media, forums and other intelligent networks such as Merger Alpha.

If you have any more queries regarding how to raise capital in India, feel free to visit http://mergeralpha.com/.

A Few Tips On How To Raise Venture Capital For Your Startup

Raising Venture Capital

Raising Venture Capital

Raising seed stage venture capital is one of the toughest challenges you can ever face. However, despite fierce competition, potential startups always somehow manage to find capital and reach a successful position. Over these years, I have seen many startups succeeding and many failing in their endeavour to raise capital. No wonder, there are certain aspects that many entrepreneurs fail to understand before their first meeting with a potential investor.

So if you are a first-time entrepreneur, here I am listing some very basic tips on how to raise capital from a VC for your startup. The points may seem very obvious but you will be amazed to know that most of the failed attempts are due to lack of one or more of these obvious aspects. So before you take your first attempt, make sure you have all the prerequisites with you that will enable you to convince a VC easily.

Quick Tips On How To Raise Capital

1. Know Your Requirements

What you want and how much you want should be very clear to you before you look into any other aspect. Unless you know about your requirements, you won’t be able to express your thoughts in front of an investor which will indicate lack of transparency on your part. If you don’t know what you are looking for, how will the investors know what they are investing for? Make a list of your requirements so that you can ask for the justified value for the first round of investment.

2. Create An Efficient Management Team

An efficient management team is the life of a company that executes all major operations ensuring smooth functioning of the company. Investors are, therefore, very particular about the quality of a team before investing. They usually look for a team that is smart, talented, committed, honest and expert in finance and management. The better the teamwork, the brighter the outcome, so make you manage to bring great talents under a single roof.

3. A Strong Value Proposition

Why would a customer pay for your product is the first critical question you have to answer so make sure you have something very impressing to say to the investors. If possible you can demonstrate a strong value proposition with the help of a group of beta customers from your target market. First come up with a working model of your product or service and then demonstrate why customers would come to buy that from you.

4. Proceed With The Right Attitude

Attitude is very important while dealing with capital raising. While wrong attitude can lead you to nowhere, right attitude can take you straight to your investors’ table. So try to maintain a pleasant and positive attitude and a great power to handle rejection. You never know when someone can introduce you to a potential investor so it is a must for you to be friendly with everyone in your network.

5. Choose Your Investor Carefully

Venture capitalists vary in their preferences; some invest in seed stage while other are interested in growth stage startups. Some invest in technology while some in energy or finance or maybe some other sector. Basically, you have to identify the right investor and then start chasing or it will all be a waste of time and energy.

Conclusion

These simple and basic things are highly effective in making a business look attractive. Remember, the eagerness with which you are looking for business capital is no less than the same with which investors are looking for investment opportunities. So if you can manage to offer them a lucrative investment opportunity, they will jump into it before you take it to some other investor. This means, there is no dearth of money in the market. All you need is the right set of things to raise it easily.

For more information on how to raise capital for your startup, feel free to visit Merger Alpha.

Good luck!

Top 12 VC Firms You Can Approach To Raise Capital In India

Over the years, I have seen so many entrepreneurs toiling to raise capital in India for their dream startups – some failing while some succeeding. And, the one simple thing I repeatedly realized is that no matter how talented and skilled you are, it is only “Capital” that ultimately allows you to execute your plans. The challenge is even higher at seed stage as the avenues to raise capital are very few compared to growth stage. The reason is the huge amount of risk, usually, associated with seed stage startups that keeps banks and other financial organizations from investing.

However, witnessing the huge pool of talent and surge of technological innovation in India, many venture capital firms from across the globe have started setting their offices in India with an aim to invest in high-risk startups.

Today, there are large numbers of local and global venture capital firms that are ready to invest in your ideas provided you offer them a unique product or service with a highly scalable market. If you have these two prerequisites, you are almost halfway towards your goal and that’s why I am providing you with a list of some of the top VC firms in India that are actively involved in pushing potential startups towards success. Try to approach them only based on the suitability of the industry and stage of investment so that you can save both time and money.

Top Venture Capitalists To Help You Raise Capital In India

Accel Partners

Location – Bangalore, Karnataka
Industry – Cloud enabled services, Mobile, Software, Internet and Consumer Services, Infrastructure, etc.
Stage – Early stage investments.

Band Of Angels

Location – Mumbai
Industry – Software, Health and wellness.
Stage – Seed, early and later stage investments

Bessemer Venture Partners

Location – Mumbai
Industry – Enterprise Software, Software and Mobile
Stage – Seed, early and later stage investments along with Private Equity and Debt Financing

Battery Ventures

Location – Mumbai
Industry – Software, Enterprise Software and Analytics
Stage – Seed, early and later stage investments along with Private Equity and Debt Financing

Canaan Partners

Location – New Delhi, Delhi
Industry – Healthcare, Software and Biotechnology
Stage – Seed, early and later stage along with Private Equity and Debt Financing

Helion Venture

Location – Bangalore and Gurgaon
Industry – Enterprise Software, Online Services, E commerce, Mobility and Outsourcing Services.
Stage – Early to mid-stage financing

Jumpstart Ventures

Location – Bangalore
Industry – Internet, Software and Ecommerce
Stage – Early and later stage along with Debt Financing

Light Speed Venture Partners

Location – New Delhi
Industry – Mobile, Software and Enterprise Software
Stage – Seed, early, later stage, Private Equity, Debt Financing and Grant Investments.

Matrix Partners

Location – Mumbai
Industry – Enterprise Software, Software, Mobile, Financial Tech, SAAS and E-commerce.
Stage – Seed and Early stage investments

New Enterprise Associate

Location – Bangalore
Industry – Mobile, Software and Biotechnology
Stage – Seed, early and later stage along with Private Equity and Debt Financing

Nexus India Capital

Location – Mumbai
Industry – Business Consumer Services, SAAS, Consumer Internet, Mobile and Enterprise Technology.
Stage – Seed, early and later stage investments.

West Bridge Capitals

Location – Mumbai
Industry – iPhone, Android and Mobile
Stage – Early and later stage investments.

Conclusion

One thing that is critical to venture capital raising is networking. Having a strong network will make it much easier for you to find an investor as there will definitely be someone who can introduce to a potential investor.

Another easy way is to become a part of an intelligent network like Merger Alpha that brings together buyers, sellers, financiers and advisors under a single roof. The network not only allows you easy access to a VC but also gives you a scope to learn successful business strategies from other influential people in the industry.

For more information on how to raise capital in India, feel free to visit http://mergeralpha.com.

Do share your thoughts and experiences with capital raising in the comment box given below.

Good Luck!

How To Raise Seed Stage Capital In India

The Indian startup ecosystem has long been trying to gain the attention of potential investors. Despite being a land of huge talent, entrepreneurs with seed stage stage often need to go through a very tough phase to raise capital in India. Especially, banks make it the most difficult for entrepreneurs as they invest only if a startup has started earning revenues or it is an already established company. If you too are planning to raise seed stage capital in India, here are some of the most common sources you should check out instead of running from one financial organization to another.

Sources For Seed Stage Capital In India

  • Your Personal Fund

    Remember, your personal fund is not just a source of capital but also a potential certificate to prove the growth potential of your startup. In fact, any venture capital firm, at a later stage, would love to invest in your startup based on this aspect that you have utilized your personal fund in the growth of the company. If not 25 to 50 percent then at least 10 percent from your personal fund can also help you make a good impression.

  • Your Revenues

    Though not an enormous source but it definitely is another effective way to support your startup at this stage. Not to mention that you can also show other investors that you are capable of backing the firm with its own revenues. And the impression will be quite positive for sure!

  • Crowdfunding

    Trending rapidly around the world, crowdfunding is another cool way to finance your startup. This lets you showcase your product to the world, pre-sell your products to consumers on the internet and gain the capital to manufacture the products. Many successful startups have used this financing option as a stepping stone to their success. However, it definitely needs a lot of effort to make your business go viral on social media and other online platforms but the effort you put is worth it at the end.

  • Friends/Family

    Though friends and family members also make a very common source of finance, you should still be very careful while dealing with your close relations on such matters as there are chances that you might end up breaking your relation with the person which is definitely not a good idea.

  • Angel Investors

    These wealthy individuals are a very common source of finance for high potential startups that aim to gain a successful position on the global platform. These investors usually do not take part in a company’s management matters but they make the investment with an aim to back high potential startups so that they can grow, succeed and bring a significant change to the society. In return, they can take a small percentage of the profit share made by the investee company.

  • Venture Capital Financing

    Quite like angel investors, venture capitalists also invest in high-potential startups but with the exception that they do so only when they foresee huge profits with the company. Their sole aim is to earn profits by investing the capital in potential markets like technology, energy, software, telecommunication, digital marketing, etc.

    However, raising seed capital from a VC is quite a challenging job as they usually make the entrepreneurs go through quite a tough phase before bringing out the much-needed capital. However, they are justified in doing this as the amount of capital they invest is, any day, much higher than what any other investor would invest. So they just want to ensure that there is least risk associated with the startup they are investing in and they money they invest will come back as a larger profit.

Conclusion

How to raise capital in India is a question that is currently bothering millions of startups across India and Asia. It is all about identifying the right funding option for your startup and once you find it, you can smoothly raise seed stage capital in India.

Another way to get faster access to venture capital is to become a part of an intelligent network like Merger Alpha that offers a common platform to buyers, sellers, financial and strategic investors and advisors of the startup ecosystem in Southeast Asia. To become a part of this huge network or any information on how to raise capital in India, feel free to visit Merger Alpha http://mergeralpha.com/.

Good Luck!