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How To Fund Your Indian Startup


Just Imagine! You have an extraordinary idea for a business. A handful of people who believe in that idea join in the work. You geeks pool in money from your savings and work on creating the product around the idea. Your startup is beginning to get some traction now with each increasing customer base, which forces you to expand your operations and your team. Before you know it, your startup has captured a significant section of the market, is profitable, and all poised for an initial public offering. I know. This situation for a startup can only exist in an idealistic imagination while the reality can be far more scary, unpredictable, and full of surprises.

BOOTSTRAPPING

Bootstrapping means tapping into funds already available to you or funds you get from family and friends. Usually, the money you borrow from your family and friends is interest-free or at least, at a slightly lower interest. If you have a plan to start your venture, you need to factor in the expenses and start investing to build a start-up kitty. If you have a long-term horizon of 10 years, you should invest through equity. However, if your goal is closer, consider fixed income. “Ensure that you put your savings into fairly risk-free and liquid investment options. Liquid funds and ultra-short funds are a good option.

Venture capitalists

Venture capitalists are a set of people who invest money in business ventures, start-ups, and expansion. They’re wealthy people looking for a place to invest their capital with a long-term growth perspective. The capital that they invest in known as venture capital. These investments are risky as they are illiquid, but they also guarantee impressive growth depending on the build-up of the company. Since it is their money that is at stake, they have the power to influence major decisions of the company they have invested in. Venture capitalists are very exclusive when it comes to investing in a start-up. People without track records and who have service businesses usually don’t get venture capitals. If getting an angel investment is hard, then getting a venture capitalist is harder therefore it is wiser to aim for an angel investor before a venture capitalist for your start-up business.

Nasscom – the most sought after startup business grant

Nasscom’s 10,000 startups program was started in 2013 with the idea of funding 10,000 Indian startups in 10 years. This is the process followed: selected startups are helped to raise money from VCs, government funds, and angel investors, among others. The startups get to work with accelerators, are mentored, and are helped to foster strategic partnerships with Nasscom’s network.

Focus sectors: healthcare, agriculture, education, smart cities and infrastructure and AI across industries

Join A Startup Incubator Or Accelerator

There is a small difference between these terms as Incubators start-ups that are new and are at a very early stage of their business whereas Accelerators accelerate the growth of an existing idea and business. So all you have to do is choose the right one for your business.

Equity Share

It is a main source of finance for any company giving investors the right to vote, share profits, and claim on assets. In the world of finance and investment management, ‘equity share’ is a big word frequently used in every next discussion. We call it stock, ordinary share, or shares, all are the same.

It is a main source of finance for any company giving investors the right to vote, share profits, and claim on assets. In the world of finance and investment management, ‘equity share’ is a big word frequently used in every next discussion. We call it stock, ordinary share, or shares, all are the same.

Different types of Equity shares are classifies based on various things and those are Authorized share capital, Issued share capital, Subscribed share capital, and Paid-up capital.
How To Fund Your Indian Startup
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How To Fund Your Indian Startup

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