The capital markets' structure and rules make it difficult for a fresh company to raise funds. To protect investors, regulations limit investment banks and public equity firms' operating practices.
Banks only lend
money to startups if they have hard assets, which startups do not have in
today's information-driven economy. Due to the high risk of startup investment
and the banks' mandate, venture
capital financing serves as a form of haven for company entrepreneurs.
How To Get Venture
Capital Funding In India
The financial
advisory services like the guidance, mentorship, and support that come with VC
funding can be very valuable for the startup founders, but raising venture
capital funding in India is far from easy.
The following are
the considerations that an investor should make:
The suitable
venture capital firm: The entrepreneur must select a venture capital firm with
experience in the company's industry. To accomplish so, the entrepreneur must
perform their research to find the suitable venture capital firm.
Creating a
positive first impression: To get money, the entrepreneur must persuade a
Venture Capitalist of the company's potential with a well-written business plan
that details the idea, potential, and strategy.
Approach Timeline:
The next stage is to approach the venture capital firm's analysts and
associates and present their business ideas and projections in order to get
money.
Using Healthy
Care: The founder must use caution while explaining the business idea to VC
investors. If the deal falls through, the idea may be leaked, which might
jeopardize the company's initial growth.
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