India has become the third-largest startup ecosystem in the world due to the gradual rise in the startup culture. The three main resources for a startup are ideas, funds and people. The idea will be developed on considering the market factors, competition and growth. If the business idea is found appealing after the prototype process, the investors line up to fund the startup. Startup fundings is a difficult task and can transform the business landscape completely. As a budding startup entrepreneur, you must evaluate where your startup stands and how much funding is required to be raised from external sources and what type of investor you need.

1. VENTURESY
Investment banker | Startup advisors
in Madurai

2. The process of startup funding
 India has become the third-largest startup ecosystem in the world due to the gradual rise in the startup
culture. The three main resources for a startup are ideas, funds and people. The idea will be developed on
considering the market factors, competition and growth. If the business idea is found appealing after the
prototype process, the investors line up to fund the startup. Startup fundings is a difficult task and can
transform the business landscape completely. As a budding startup entrepreneur, you must evaluate where
your startup stands and how much funding is required to be raised from external sources and what type of
investor you need.
 Regardless of what startup you have, you require funds to keep your business on momentum. The capital
determines how far your business will go by understanding the crux of the business. It is difficult for a
startup to scale effectively without sufficient capital. Understanding the different needs at each stage of
funding will equip you with the confidence to engage investors with a clear pathway. While startups have
many strategies to grow, every approach of the strategy has one common element – funding. Here we
have explained the process of startup fundings.

3. Entrepreneurship
 Startup funding comes in many forms. Today, entrepreneurs are accessing in a less conventional
manner. Rather than taking up loans in banks or capital from money lenders (financiers), entrepreneurs
are cleverly approaching professional investors on one condition of giving up equity in the company.
 An entrepreneur ascertains how much capital is required. This stage is called self-funding or
bootstrapping when you invest money from your own pocket or procure from friends and families. It is
the little investment done at the earliest stage. The sources include banks of family and friends, credit
cards, personal savings and crowdfunding. If these are not available or not sufficient, you can approach
seed accelerators. This stage will let the startup operate or take off from the planning.
 This lets your business keep running. At this stage, investors take a huge risk by investing in the business
without seeing or sensing the real-time product/service. The stakes are higher at this stage because
investors are funding for the product/service that is not felt or sensed in real-time. Accelerators invest in
both your startup and in your potential to develop and pitch solutions to the problem.

4. Venture capital in Madurai
 Venture capital comes into the frame after the product/service hits the market. Most of the startups
consider this as the growth phase funding. It involves series A, B, C, D and goes on. At the end of each
round, the startup raises a higher value and increases its company’s valuation as well.
 Series A funding - this is the first round of funding in the venture capital stage. At this stage, the
product/service has set a customer base with a reliable income stream. The funds obtained here are used
for business growth, marketing and brand credibility. Its size may reach from 14 million dollars to 15
million dollars. The fund raised here opens the door to scale up.
 Series B funding – the second round of venture capital stage. This stage is the scaling phase where a
startup tends to build products based on the customer’s demand. In this round of funding, the business
expands to the next dimension. With these fundings, the startup improvises the infrastructure and
expands the customer base, employees and management team of the company.

5. IPO phase
 The initial public offering is the first time the company decides to offer corporate shares to the public. It
is the last stage of funding and helps startups grow and diversify themselves. In the case of the company
performing well in the IPO, investors would gain a lot of profits. Growing startups that need funding
often use this process to generate funds, whereas established organizations use it to allow startup owners
to exit some or all of their ownership by selling the shares to the general public. A startup cannot go into
IPO without a certain set of events. Financial performance, future operations, audit reports, formation of
an external public offering team and prospectus with the SEC and determines specific dates for going
public
 The different stages of the investment process are set with each goal and entrepreneurs scale and develop
their startup by meeting the goals. This scaling practice allows them to recognize where the startup is
placed and which potential financial experts would put resources into their business to help them grow
and develop. The entrepreneurs decide what type of investor could be appropriate for the startup venture.
The funding process is the largest and crucial part of any business to meet all the requirements for a
specific grant round. Every stage of the startup funding stage will leverage the entrepreneurial journey up
to the limitless market skies, only if the entrepreneur is conscious of every informed decision he/she
makes from business ideas to choosing investors.

6. Contact Us
 Address: Viveks electronics, MIG 341,
 P.Rajkumar Building, 4th floor, LIG Colony Rd,
 Anna Nagar, Madurai,
 Tamil Nadu 625020.
 Email: info@venturesy.in
 Call: 9655769799
 Link: https://venturesy.in/