Start up funding-upload

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Surviving entrepreneurship, Funding

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Start up funding-upload

  1. 1. Start-up Funding Abhijeet Bhandari
  2. 2. The Three Phases Pre-funding Funding Post-funding
  3. 3. Pre-funding: The Jungle rule! Survival of the Fittest
  4. 4. Pre-funding: How to survive? If you survive, then only you will thrive? Keep Walking!
  5. 5. Survival Mantras • Asset Light/Little Liabilities • Strict financial discipline: Personal & Company • Consulting/Teaching • Factoring/Line of Credit • On-cloud services • Free: Hangout, Asana, Teamviewer • Resource sharing: Co-working space, lawyers, accountants, etc • If your father is poor, its your fate..if your father-in- law is poor, its your stupidity...
  6. 6. Survival Mantras • Partnerships – Real estate players – Customer as partner (for initial funding) – Customer as partner (for building a new product) – Starbucks – Employees – Vendors
  7. 7. Funding Stages • Personal Reputation • People believe in you FFFs • Small Capital • Mentoring & Support Accelerators • Belief in your idea • Initial Traction Angels • First Institutional Investor • Traction & Revenues VCs • Large deal size • Typically established businessesPEs Size 1-10 L 5-50 L 20-500 L 5-25 cr 25+ cr
  8. 8. Accelerators/Incubators • AngelPrime • Kyron • Freemont Partners • Veddis Ventures • GSF Accelerator • Morpheus • Myfirstcheque • TLabs
  9. 9. Accelerators/Incubators • Microsoft/Google Ventures • Corporate Incubators: Target, TechM • CIIE, IIMA • 5ideas, Pearl Uppal • Government Incubators: In about 34 cities across India • International – JFDI.Asia; Israel – 500startups: Dave Mcclure – Y Combinator; RocketInternet; Startup Chile
  10. 10. Angel Networks • Mumbai Angels • Hyderabad Angels • Chennai Angels • East Angels • Harvard Angels • Bangalore Angels • Saarthi Angels • Ah Ventures! • Calcutta Angels • Lets Venture • Seeders
  11. 11. Venture Capitalists • Nexus Ventures • Yournest venture fund • Blume ventures • Seedfund • India Internet Fund
  12. 12. Other Funding Sources • Government Grants – Department of Science & Technology (DST) – Technology Development Board – National Skill Development Corporation (NSDC) • SIDBI Startup Assistance Scheme • Venture Debt: SVB India Finance/Intelligrow/Villgrow • Cash credit & bank overdraft
  13. 13. Elevator Pitches • The Pixar Pitch: Where the Pitch starts from a Once Upon A Time kind of story. (Eg: Toy Story). The audience can easily visualise your words and relate to them • E-mailers Pitch: Which incites curiosity in the audience and investors. Starts with a communicative tone. Personal, WIIFH, PoC • Questions Pitch: Where the Pitch starts with a pointed question. Eg: How many of you have ever got stuck in traffic…
  14. 14. Most asked questions • What is the problem the startup is addressing? • What is your solution to the problem? • How are you going to acquire customers? • What is the cost of acquisition? • What is the life-time value of a customer? • What's your plan to beat the competition ? What's the USP of the company? • What's your vision for the business?
  15. 15. The DOs • How to multiple their money 5 times in 3-4 years? • Your start-up definition • What’s your story? • Can they feel the pain? Can they be your customer? • Investors are sensible people too!
  16. 16. The DON’Ts • Top-down vs bottom-up approach? • Divided focus? • Sell dreams but don’t be in dreams! • Don’t believe that excel is reality!
  17. 17. Key Numbers • The Asked investment • Product / Service Pricing • Time to Break-even • The graph of declining costs • The time the amount will last
  18. 18. Revenues & Expenses
  19. 19. Some Tips! • Build a relationship with investors • Speak to Alumni/Friends/Linkedin • Don’t lose focus from business: Keep bootstrapping • Valuation: A perspective and the stories!
  20. 20. Some Views… • We look for strong founding team, key differentiator, and a fundamentally large addressable market in any elevator pitch, Accel Partners’ Prakash • OnlinePrasad, raised Rs 50 lakh from serial entrepreneur Krishnan Ganesh over a 10-minute elevator pitch • IIT-Kanpur alumni Sahil Baghla raised Rs 1.5 crore for his gifting portal BlueGape from 12 global investors, without even meeting them from Lets Venture
  21. 21. Some Views… • Bakshi, 30, whose company makes laptop bags that can charge phones and tablets, when kept in the sunlight. "Lumos solved a need that I have" Rajan Anandan
  22. 22. Thank You!
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