1. Getting angel/VC funding
for your venture
________________________________________________
Prajakt Raut - founder
2. Prajakt Raut – founder Applyifi.com
• Previously the Asia Director of TiE (2004 – 2007) – helped overseaas investors connect
with startups in India
• Was head of operations of the Indian Angel Network, one of the largest angel investor
groups in the world
• Deep experience and connects in the Indian entrepreneurial eco-system
• Personal goal is to encourage and assist a 100,000 people to become entrepreneurs
• Founder of The Hub for Startups – a well-respected blog for startups
• Started a printing business at when he was 17, and later was founding member of a
CRM solutions company
• Prajakt has spent over 10 years in the advertising industry with agencies like Grey,
Capital and DMB&B
• Co-founded Orange Cross, a healthcare services company
9. Developing a business plan
o Start with a ‘story’ - ‘See the film in your mind’
o Work out rough milestones and goals
o Think deeply of how you will implement it
o Work out the different kinds of costs… and revenues
o Start working in the excel sheet – assumptions are
critical
o Work on multiple ‘scenarios’
o Finally, articulate it into the ‘presentations’
10. What should a business plan cover?
1. Concept overview - problem - solution
2. Team
3. What is the size of the opportunity
4. What is the value proposition/positioning
5. Business model & Business Case
6. Competitive landscape
7. Operations plan overview
8. Risk factors
9. Funding needs and use of funds
10. Exit potential
12. But no one makes
money by buying
shares.
You make money only if you
sell the shares at a higher
price than you bought it at.
13. Angel investors and
VCs seek 10x +
return on their
investments_______________________________________________________________________________
______
Concept of valuation
2
27. Key criteria for investors
1. Is the market large?
2. Does the venture have a reasonably strong
chance of being a dominant player?
3. Is the business case strong and will
investors get an exit?
4. Is this the team that I can bet on?
28. Your focus should be to
convince investors that
your startup is a good
investment opportunity
29. Investors look for competent and
committed teams
- Passion and deep interest in the domain
- Deep understanding of the dynamics of
the business around the concept
- Willingness and competence to
implement the concept (not just ideate) –
experience is hugely valued, if not
mandated
30. Investors look for plans with practical
milestones
But large aspirations
31. Investors look for teams
with focus in the initial
phase
Even when entrepreneurs have identified
multiple opportunities with the concept
32. Investors look for a
strong implementation
plan
“According to Gartner, the market will be USD 20 bn in 2020”
is not a reason to invest
How you will get the first 1000 users or first 2-
3 partnerships / enterprise customers is.
33. Investors seek teams
that have a clearly
identified immediate
goals and tasks
What do you need to do to launch?
What are you going to test?
34. Investors seek a plan that clearly
outlines how much funding is
required, where it will be used and
what it can achieve
You should seek from angel/early investors only as
much as you require, to go till you can attract VCs
In rare cases, the initial funding is sufficient enough
to take the startup to sustainability
35. Finally, investors
look for teams they
can trust
Be honest about risks & challenges, be open
about limitations and weaknesses
When you tell them where you need help, they
will be able to provide inputs
36. In Summary
• Investors invest in a solid business that
addresses a large market
• Investors invest in high-quality teams with
large aspirations
• Investors invest in clearly defined plans
with practical milestones
Make the investor go back feeling “What a great
concept. I think the market is large and the team
will deliver.”
37. If you liked what you
heard, tell others.
If you did not like it, tell
me.
38. About me
• Prajakt Raut – entrepreneur and
entrepreneurship evangelist
• Founder of The Hub for Startups and
Applyifi.com
• I blog on www.thehubforstartups.com
• Twitter: @prajaktraut
• Mail: prajakt.raut@applyifi.com
