Get a brief idea about the Seed fund and of the different ways in which the entrepreneurs generate seed fund. Also get an idea of the different methods of seed funding available in India for the Entrepreneurs.
Seed Capital InvestmentSeed Capital Investment refers to the initialround of investment required in setting upa company, one that would help get youridea off the ground.
• Acquiring seed funds is the initial challenge thatentrepreneurs face in establishing a startupcompany.• As most of the investment agencies in India areeyeing companies that are looking for expansion,they are very limited options available forEntrepreneurs looking for seed capital.• The reason for this trend being the risk involvedwith Seed fund is more when compared toinvestments that pertain to expansion incompanies.
How do Entrepreneurs generate seedfund?• Entrepreneurs generate funds of their own-through savings and loans or turn towardsFamily or Friends, humorously abbreviated asFFF (friends, family and fools), for the Seedfund.
• Angel Investors : Unlike the other players inthe Investment network like the VentureCapitalists and Equity Financers- are quitewilling to provide the Seed Fund for theseStartup Companies.• In return for these investments, they ask foran equity stake in the company. They alsoprovide financial and legal assistance to theStartup Companies as well.• The number of such Angel Investors is quiteon the rise and looks like there are good daysahead for Indian Entrepreneurs.
What do Startups do with the seedfund?• With the seed funds acquired, the StartupCompanies plunge into activity. The seed fundsmight also be used for market research- to see ifthe market’s ready for their product- and forproduct development.• This doesn’t take much of a time as theEntrepreneurs would already have done theirhomework before plunging into activity.Utthishta is one such seed fund that provides fundsfor startups in return for an equity stake in thecompany.
Contact Us• www.utthistha.com• Blog : http://www.utthishta.com/blog/• Slideshare: http://www.slideshare.net/Utthishta• Youtube: http://www.youtube.com/UtthishtaSeedFund• Google + https://plus.google.com/108795327446527541978/https://www.facebook.com/utthishta@Utthistha