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- 1. "Navigating the DynamicStartup Ecosystem: A Comprehensive Analysis of Emerging Trends in Valuation Methods and Fundraising Challenges” Submitted By: Vrushti Papoli Roll no: 122068 Under the guidance of: Dr. Nilam Panchal
- 2. • Ahmedabad-based startuplogistics company • Specializes in B2B and B2C last-mile delivery services • Focus on technology and sustainability for a cutting-edge approach Story About Us Vision To be the preferred logistics partner for businesses and make a positive impact on the communities we serve. Mission Delbird is dedicated to offering dependable logistics solutions that conserve our clients' time and resources while putting a high priority on outstanding customer service and long- term profitability ABOUT US
- 3. 1 INTRODUCTION 2 STARTUPECOSYSTEM 3 STAGES OF STARTUP 4 FUNDING 5 6 Table of content SUGGESTION 7 VALUATION METHODS FINDINGS
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- 5. Startup ecosystem India •National Innovation and Startup Policy 2019 • Challenges: Brain Drain Inadequate Digital Infrastructure • Support Organizations and Initiatives: Alliance of Digital India Foundation Startup India Make in India • India's Potential Educated, Young, English-speaking Population.
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- 8. Angel investors • investin startups during the seed stage. • Provide capital in exchange for convertible debt or equity. • Make smaller investments compared to venture capitalists. • Notable Angel Investors: Ritesh Malik Rajan Ananda Kunal Shah Venture Capital Funds • Support growth and expansion of the startup companies. • Receive equity or equity-linked instruments in return for their investment. • Micro Venture Capital (VCs): • Smaller funds specialized in investing in early-stage firms. • Focus on providing capital to startups in their early phases. • Typically receive an equity stake in the companies they invest in. Venture Debt Funds • Venture debt funds offer debt financing as an alternative to costly equity funding for startups. • Financing instruments include non-convertible debentures and equity warrants. • Notable players like Alteria Capital and Trifecta Capital support Indian startups with venture debt financing. Government Grants & Funds • Startup India Program: (Launched in 2016) Offers grants and incentives Includes an 80% rebate on patent costs and income tax exemption for the first three years. • Fund of Funds Scheme: Managed by SIDBI (Small Industries Development Bank of India). Provides financial support and resources to startups through these funds. • Startup India Seed Fund Scheme: Allocates INR 1,000 Crore for the initiative, with INR 283.5 Crore allocated for the current year. Financing a startup
- 9. Family Offices • Indiahas 140+ family offices actively involved in startup investments. • Expected to contribute 30% of the estimated $100 Bn funding raised by Indian startups by 2025. • Praxis Global Alliance and 256 Network report highlights the significant role of family offices. • Next-Generation Wealthy Family Members: Azim Premji, Anirudh Damani, Gaurav Burman. Incubators & Accelerators • These programs typically last between four to eight months • Startups receive cash investment and gain access to mentors, investors, and corporate partnerships. • In exchange for participation, startups often offer a percentage of equity to the accelerator or incubator. • Notable Indian Accelerator Programs: • Y Combinator, GSF Accelerator, Microsoft Accelerator, Google Launchpad Accelerator, and JioGenNext are well-known accelerator programs in India. Banks • Banks offer various types of loans, including working capital loans, startup business loans, and equipment loans. • Startups in the idea stage may require larger collateral and additional revenue sources to qualify for loans. • Fullerton India and Omozing.com are prominent banks and Non-Banking Financial Companies (NBFCs) providing financing to Indian startups. Crowdfunding Involves retail investors coming together on a platform to review business plans and invest in startups. Equity crowdfunding's legal status in India is uncertain due to regulatory concerns. SEBI discourages unregistered digital crowdfunding platforms to prevent potential scams. notable Crowdfunding Platforms for Startups: Indiegogo, SeedInvest Technology, Mightycause, StartEngine, GoFundMe, Patreon, GripInvest, and ImpactGuru are some well-known crowdfunding platforms supporting startups
- 10. Valuation is doneon basis of …….
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- 16. Score Card Method ComparisonFactor MaximumRange Target Company's Score Factor Strength of the team and management 30% 125% 0.3750 Size of the opportunity 25% 150% 0.3750 Product/Technology 15% 100% 0.1500 Competitive Environment 10% 75% 0.0750 Market/Sales/Partnerships 10% 80% 0.0800 Need for Additional Investment 5% 100% 0.0500 Other Factors 5% 100% 0.0500 Total 1.1550 Average Pre-Money Valuation of Other Startups USD 2 Million Pre-Money Valuation of Target Startup USD 2.31 Million
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- 23. Suggestions Strengthen Market Differentiation: Toovercome market competition and entry barriers, startups must focus on developing unique value propositions, innovative products, and services that set them apart from established players. Seek External Valuation Expertise: When facing challenges in determining startup valuation, seeking assistance from financial advisors or consultants can lead to more accurate valuations and better negotiation outcomes during fundraising rounds. Diversify Funding Sources: Startups should explore multiple funding options beyond traditional bank loans and bootstrapping. Angel investors, venture capital, and crowdfunding platforms can offer additional financial resources and networking opportunities. Build a Strong Team: Finding and retaining the right talent is crucial for a startup's success. Entrepreneurs should prioritize building a skilled and motivated team that aligns with the company's vision and values.
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