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!

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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!