Fresh out of college, stepping into the competitive world and struggling to find your space, that is how an entrepreneur is during his/her journey. For them, the end is never a part of the journey, it is always a process of growth and flourishment.
Yet, you know why many entrepreneurs fail? It is because they don’t know where to begin, where to look and what to look for. As an entrepreneur, it is most important that you get the right startup funding, the right source and prepare the right pitch when you begin.
To help you decipher the right track and approach, we have laid out a few to-dos to impress investors –
Build a tempting pitch with a creative idea, vision, and mission for your start-up. This is what makes your idea irresistible, builds up and makes for an impactful start.
Build a good team that aligns with your idea, they will be the ones who will support you and put forward a good outlook to the possible investors.
It is important to show your trust in your own start-up by investing a good initial amount yourself. It is said one should invest around 20% on their own before approaching any source of funding.
Make correct divisions of departments and then make appropriate financial projections of your firm. This is the most important aspect during a start-up pitch.
Market your product vigorously from day one. Brainstorm innovative ideas to ensure public knowledge of your brand. Tables will turn for your favour, if you approach an investor and they are already aware of your brand.
Ensure that you have a loyal and confirmed fanbase and userbase for your product. This way not only do you get the chance to pitch to your investors about future success, but also show better growth projections.
Now that you are good to go, these are the threes sources you can fetch you the startup funding you are looking for–
Use any of the three techniques of crowdfunding via directly crowdfunding platforms like Kickstarter, Indiegogo, etc. This way you get to directly put forward your pitch, plans, and details on a platform to get investors in a short span of time.
You could use Reward crowdfunding to hand out gifts to investors, have loans taken as a debt crowdfunding process or go for direct equity crowdfunding where you allot a portion of your business to investors. Whatever suits your business, costs, and product well.
If you are an extremely new start-up, this is how you get initial investment. Most angel investors mentor and invest in new start-ups in return of around 20-30% equity. Big names like Sachin Bansal (Flipkart) and Kunal Bahl (Snapdeal) are amongst the best Indian Angel Investors. After all, who wouldn’t want to be mentored by them?
Venture Capitalists are like the older version of Angel investors. They step in once a start-up crosses the take-off stage, generates good revenues and needs more funding to expand or generate better connections.
Infact, VCs are known for higher investments and equity demands due to their rising importance. Sequoia Capital India is one of the most commonly heard and renowned VC firms in India.