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.
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.
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.