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!

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!

Thinking How To Raise Venture Capital In India? Check Out These VC Firms

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Raising a business in India is a great challenge along with excitement. An an entrepreneur you need to devote a significant amount of time in accumulating all the resources that can ultimately help you get started. Needless to say, the most crucial of all is the capital which determines the successful execution of your unique idea. Even the best of entrepreneurs get access to their potential investors after months of efforts in building their capital raising campaigns. If you too are wondering how to raise capital in India, the venture capital industry definitely has a lot of scope these days.

Today, there are large numbers of local and global VC firms operating from various cities in India bringing up ample opportunities for entrepreneurs like you to fulfil your innovative dreams. If your product or service has great potential, it won’t be very difficult for you to attract these investors to offer you the much-needed capital.

Top Venture Capital Firms In India

  1. Canaan Partners – New Delhi

Industry – Healthcare, Biotech, Software. Offers seed, early, later stage VC investments, Private equity and Debt financing.

  1. Band Of Angels – Mumbai

Industry – Software, Healthcare and others. Offers seed, early and later stage investments.

  1. Bessemer Venture Partners – Mumbai

Industry – Mobile, Software and Enterprise Software. Makes seed, early and later stage VC financing.

  1. Accel Partners – Bangalore

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

Makes growth stage investment.

  1. Helion Ventures – Gurgaon and Bangalore

Industry – Outsourcing, Enterprise Software, Mobility, E-commerce and Online Services. Offers early to growth stage investments.

  1. Light Speed Venture Partners – New Delhi

Industry – Software, Enterprise Software and Mobile.

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

  1. Matrix Partners – Mumbai

Industry – Software, Enterprise Software, Mobile, etc. Makes seed and early stage investments.

  1. New Enterprise Associates – Bangalore

Industry – Mobile, Software and Biotech. Offers seed, early and later stage investments, Private equity and Debt financing.

  1. Jumpstart Ventures – Bangalore

Industry – Internet, Software and E-commerce. Offers early and later stage, Debt financing.

  1. Nexus India Capital – Mumbai

Industry – SAAS, Business Consumer Services, Mobile, Consumer Internet, etc. Makes seed, early and later stage investments.

Conclusion

Ideally, you should try the other options before raising venture capital as it will make it much easier for you to convince one or more investors at a time. Try to be your own investor first which is a great advantage in capital raising as it shows your confidence in your idea. At least 10 to 25 percent of the initial investment from your personal savings can attract many venture capitalists so it is worth spending it.

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