Tag: Future Investments

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Angel Investor Startup

Best 5 Ways for Entrepreneurs to Raise Funds for their Startup Business!

प्रोडक्शन लिंक्ड इंसेंटिव (पीएलआई)

A lot of entrepreneurs face plenty of challenges when setting up a new business venture. However, there is one factor that is common amongst everyone- to get the right resources and funds essential to kick-start your startup.

While there are plenty of challenges that entrepreneurs face on their journey of setting up their startup, raising funds could be the major challenge. This single challenge could decide the fate of your business venture.

If you too are encountering the same challenges, here are five ways in which you can raise funds for your new venture:

1. ANGEL INVESTORS

This is one of the fast-track methods that can help you to raise funds for your start-up business. An angel investor can take an equity share in your startup in exchange for the money they are putting in. However, they can be exchanged for convertible debt.  Though, one requires to have extreme knowledge of every aspect of the business.

2. PARTNERSHIPS

Partnerships are essential for organizational health. Coupling with a ‘strategic partner’ is always a good idea. A trustworthy partner can help you reduce liabilities, and can bring a fresh perspective into the business.

3. BOOTSTRAPPING

We all must have heard this term multiple times, but very few of us understand the concept of bootstrapping when it comes to fundraising. Bootstrapping is when you build the company up from the scratch with your own money. It is one of the best ways to raise money for your business if you do not want any investors in your startup project.

4. VENTURE CAPITALISTS

Entrepreneurs that are looking for investors can also take financial aid from Venture Capitalists (VC). VC firms invest in the early stages of a startup company in exchange for an equity share. These organizations raise money from distinct sources and mediums and invest this collective capital into the business. This funding along with business opportunities and additional resources can help startups to grow.

5. CROWDFUNDING

Crowdfunding is taking financial aid from small business financing individuals that help startups in raising investment capital. Crowdfunding allows entrepreneurs to reach out to a pool of investors, instead of seeking one big investor.

 

Companies like First Cry, BYJU`s, Nykaa have not only managed to do fundraising but have also joined the elite Unicorn club in 2020. You too can do fundraising for your business by joining our ‘Everything about Entrepreneurship’ course.

Learn the major challenges that you may face on this journey and how to break through them. To know more about this course, click here: https://www.badabusiness.com/?ref_code=ArticlesLeads

 

 

 

Categories
Angel Investor

Top 3 Ways for Entrepreneurs to Pitch an Idea to Investors with Total Confidence

Simple ideas to make entrepreneurs` life easy

Pitching your idea to your potential investor seems incredibly nerve-wracking. It is like the feeling of giving a presentation in front of the entire class. The only difference between the two is that the former one is more challenging!

Do you wonder if your potential investor is interested enough? Will they like your idea? And most of all you wonder if this potential investor is going to fund your project or not?

According to the INC.com report, 42% of the startups fail due to lack of initial cash funding along with other reasons like legal challenges, poor marketing, lack of innovation, or disharmony within the team.

Then how can you ensure that you get investors for your startup business? By not doing mistakes that most of the entrepreneurs commit unknowingly and end up shutting down their business. Also, they practiced the best ways to approach their investors.

Here are top tips for pitching your great ideas or products to investors:

  1. Nail your Elevator Pitch

Your elevator pitch is a teaser of your startup business idea. These 30 seconds of elevator pitch should explain everything that someone would need to know when they meet you for the first time.

Your elevator speech should tell your investors everything if they have no background knowledge about your startup.

It should be crisp, direct, and clear. And simply describe your product or idea. It should cover the 3W`s- ‘What you do,’ ‘What problem you solve,’ and ‘Why you are different?’

After your pitch, make sure to connect with the person listening. Ask them questions and resolve their queries.

  1. Research about your Potential Investors

If you come prepared, the battle is half won! So before doing your pitch, do some research on who you will be presenting to.

You can search for the list of Angel Investors network that focuses on your region. Some of the investors may be a popular figure. So you can research well about them online. Study about their patterns, as some investors like to be involved in the company they are investing in. Others would rather be hands-off and would rather like to receive quarterly reports on profitability.

  1. Talk on Facts & Figures

Provide solid data reports when you are pitching your idea to a potential investor. Investors are always interested in what you have already accomplished. Also, how much profit they will make post-investment in your company.

The value of a startup is often built even before they have made profits. The numbers behind it are often driven by speculation of how good the company could perform shortly.

However, you must also be well-prepared to back up the numbers you provide to your investors. Investors would want to hear the reasoning behind your numbers.

Do not just give a random figure of new customers your company is acquiring every month. Say the exact number because it does not matter if you are attracting 20 or 20,000 customers. Your transparency and honesty are what matters the most!

Always remember that an investor is not just investing money into your company, they are giving it to you. And they are investing because they believe in you.  Hence, give them confidence by providing the real data.

Are you trying to find investors for your startup, but could not despite having an innovative idea that could make huge profits in the long run? Worry not! With our ‘Problem Solving Courses,’ you can learn how to raise funds for your business even without an investor. For more information, click here:

 

 

 

 

Categories
Business motivation Finance

India Emerges As Top Choice for Future Investments in the Next 2-3 Years: Survey

New Delhi, October 14: Business in India that have been severely affected by COVID-19 this year, have been limping back to normalcy over the past one month or so. Reports inform that India is believed to emerge as one of the top three choices for overseas investments in the next 2-3 years, a CII-EY FDI survey report showed on Tuesday. According to the survey, India is the first choice for future investments for more than two-thirds of the MNC respondents. The CII-EY FDI survey also showed that 25 percent of the respondents, who represent non-Indian HQ MNCs, view India as the first choice for future investments.

The report said more than 80 percent of all the respondents and 71 percent of the non-Indian headquartered respondents plan to make investments globally in the next 2-3 years. Moreover about 30 percent of companies are planning to invest more than $500 million. About 50 percent of the respondents see India among the top three economies or leading manufacturing destinations of the world by 2025.

According to a report by IANS, the respondents have picked market potential, skilled workforce and political stability as the top three reasons to make India their favoured destination. The other key factors which contribute to the attractiveness of India as an investment destination include cheap labour availability, policy reforms, and availability of raw materials, the report said.

“Recent reforms in the country such as corporate tax cuts, ease of doing business measures, simplification of labour laws, FDI reforms, and focus on human capital have emerged as the top drivers for fresh investments,” the report said. “Non-Indian HQ MNCs have also opined that major investment in infrastructure and 100 Smart cities as well as financial sector reforms will also help establishing India as a favourable destination for FDI,” it said.

The survey brought out some key recommendations sought by the respondents. The report said infrastructure development, faster clearances, and proper implementation of the improved labour laws and labour availability as the top three issues that the companies want the government to focus on, followed by R&D and innovation, and tax reforms. “In terms of trade policy reforms, investors would like to see a faster turnaround time for exports and imports, improved cargo handling, and trade facilitation measures to be in place”, it added.