There are 20,000+ startups in India, all with their own unique idea and aiming to become the next unicorn with startup funding
Startup ideas need a platform from where they can launch towards the sky. This platform can be built only when there is cash to spend from startup funding.
Funding! Is what every startup looks for? Startups first bootstrap to bring their idea into reality and later they go for seed round of funding, then series A, B and so on. All this looks and sounds amazing, but as per Newton’s 3rd law of motion; every action has an opposite and equal reaction.
Recently I attended a session on funding conducted by Headstart Hyderabad. They called couple of startup speakers and venture capitalists. The crowd had budding entrepreneurs that had a zillion questions related to funding of their idea. Everyone came with a hope that the speakers will show them a path to funds. The speakers were talking about their experience of going for funds and when they took it.
Couple of points that might be useful for startups
Try to bootstrap as much as possible: Any budding entrepreneur will want to launch his/her product from a big platform that is created with strong funding. But always be sure that the product is worth the platform. When you bootstrap you can test the product in the market, get feedback, do R&D, and shut it down if there is no value. An investor from day one asks about returns, and a not so successful product will give a bad reputation to the entrepreneur.
Make an amazing product pitch video: An investor is not your friend or family. He/she sees your product value and the best way to show that is through a product pitch and a visually appealing product video.
Promote your product: Try to promote your product at every networking opportunity, including social gathering. Product awareness brings you investment deals and gives you leverage while taking investment.
Talk about your journey: Investors first look at the entrepreneur before looking into the product. Share your story, talk about your journey of developing the startup/idea, talk about your experience, and everything else that will help people connect with your story.
Crowd funding: There is always a door that opens into an investor office. Crowd funding option can be used to raise initial capital and to test if your product interests people. A successful crowd funding campaign gives weight to your startup image.
Investment for all segments: Investor are definitely looking to invest in artificial intelligence, IOT, Fintech, Healthcare etc but there is no rule that they are limited to these verticals. Investors always look at startups that have client base, good revenue generating model, and a confident team.
Investor pitches: Not everyone gets funded at the first investor pitch. Always try to pitch to as many investors as possible to know what investors think about your product. A feedback, comment or criticism should be taken as learning to improve your pitch and product.
On an average 70 startups are getting funded every month since 2015 and if you are confident about your startup than funding is not something you should worry about.