Startup funding scenario in India _Entrepreneur survey

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Results of a brief survey conducted among entrepreneurs in India. The subject was about the early stage funding scenario in India. Entrepreneurs responded to several Questions about their experiences in raising funds, challenges faced and future expectations

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Startup funding scenario in India _Entrepreneur survey

  1. 1. Startup Funding Scenario in India A Study on Startups By Verdure Venture Consulting
  2. 2. About VerdureBoutique Investment Consulting with focus on Start up Mentoring Early stage Fund raisingClients include:
  3. 3. Study ObjectiveVerdure Venture Consulting conducted thisstudy to understand the startup funding environment in India better effectively address various challenges faced by startups in fund raising provide tailor made fund raising services
  4. 4. KEY FINDINGS
  5. 5. Success Rate in Fund raising15% of the total responding startups had raised fundingsuccessfully. (Way above the global success rate of 1%)
  6. 6. Funding amountAverage amount raised in•Round 1 was between INR 25 L to 50 L•Round 2 was between INR 1 & 2 Crores
  7. 7. Fundraising timeframes•Round 1 funding took typically between 3 to 6 months•Round 2 fund raising took typically from 3 to 9 months
  8. 8. Other miscellaneous findingsRound 1 of investments was mostly by family &friends and Angel investors while round 2 was mostlydone by angel investorsStartups had to pitch to an average of 5-10 investorsbefore they got invested67% of them stated that multiple rounds of pitchinghelped improve their business model and successrate with investors
  9. 9. VALUATIONS, NEGOTIATIONS ANDDUE DILIGENCE
  10. 10. Negotiations – No of Rounds
  11. 11. Further Negotiations * Specific clauses in the agreement or legal structure
  12. 12. Valuations•80% of startups expressed happiness at the valuation they received•20% thought that they could have done better.
  13. 13. Valuation Methodology40% of the respondents said that the valuation was based on haggling between parties and reasons other than scientific methods like projections and stok preferences
  14. 14. Due Diligence – Time takenDue diligence took less than a month in 54% of cases23% of startups responded that the process took over 3months time
  15. 15. Due Diligence - Paperwork
  16. 16. CHALLENGES AND EXPECTATIONSABOUT FUNDRAISING
  17. 17. Challenges experienced in fundraising
  18. 18. Future Expectations – Funding amount
  19. 19. Fundraising timeframes
  20. 20. Factors delaying the Fundraising process
  21. 21. Thank You For Details Contact saiswaroopa@verdure.inUsha.krishnan@verdure.in

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