Strategies for Indian startups to attract investors and secure funding
Experts have shared some strategies for Indian startups to attract investors and secure funding which can increase their chances of success. Read the full story to know about it.
PremiumIn India, securing venture capital (VC) funding has become a popular way to raise funds and grow businesses as investors have become quite selective about in which startup they invest their money. Hence, it is essential for entrepreneurs to navigate these turbulent waters and secure funding.
Attracting investors and securing funding can be a challenging process for startups. But with the right strategies, Indian startups can increase their chances of success. Livemint had a conversation with some organizations' CEO about how to attract investors and secure funding. Take a look at the strategies below,
1) Shrikant Shinde, Founder and CEO, GoGoA1
In India, startups are a growing culture that is creating a new breed of Indian entrepreneurs, hence, the strategy to attract investors and funds changes from company to company and from investor to investor, Shinde said, adding that the company needs to present a clear and sustainable business model with a strong business plan that emphasizes the unique value proposition of the organization which includes, expansion, financial projections, advantage over competition, etc.
“Abiding by the rules and regulations, preparing comprehensive documentation for due diligence, including financial statements, legal agreements, intellectual property rights, and market analysis help to streamline the investor evaluation process. To bring together a skilled and experienced team with a positive track record in the industry to instill investor confidence in your startup's ability to execute and navigate the sector's challenges effectively," he suggested.
According to Shinde, one of the main strategies to follow is to continuously refine your business strategy, pitch, and approach based on feedback from investors and industry experts, adapting to market trends and investor preferences.
2) Arun Mantena, Director, Valuation and Financial Advisory, Aranca
The Aranca director recommended that Indian startups should prioritize three key elements to attract investors and secure funding — a compelling value proposition, tangible traction, and transparent communication.
“By offering a unique value proposition with a strong team that differentiates them from competitors, startups can capture investor interest. Demonstrating traction through user growth, revenue generation, or strategic partnerships provides tangible proof of market validation, boosting investor confidence," Mantena said.
Additionally, having a clear business plan and maintaining open and transparent communication channels with investors is crucial for building trust and fostering long-term relationships, he said, adding that leveraging networking opportunities and government initiatives can also help startups gain visibility and access to funding opportunities, ensuring their success in the dynamic startup ecosystem of India.
3) Navneet Singh, CEO and Founder of Avsar
Singh said that there are some strategies that can help an Indian startup to attract investors and secure funding. He asserted that one of those strategies includes building a strong business plan that outlines goals, market potential, and growth strategy.
“Others are developing a minimum viable product (MVP) to demonstrate feasibility and value. Network at industry events, and conferences, and build relationships with experts and influencers. Seek government supports through grants, subsidies, and tax incentives. Leverage angel investors and venture capitalists by tailoring your pitch to their expertise. Establish a strong online presence through a professional website and social media marketing," the Avsar founder suggested.
He also said that showing traction, revenue generation, and consistent growth to demonstrate market demand is also important along with participation in startup accelerators and incubators for mentorship and investor networks.
4) Balaji Jagannathan, Co-founder and Director of Paycorp.io
“In order to secure investor funding, Indian startups must focus on building a business that not only solves a real problem but also demonstrates a clear path to profitability. This involves deeply understanding the market and customers and leveraging technology to drive efficiency and scale," Jagannathan said.
Additionally, startups must envision a clear path to exponential growth over a 5-year period and build trust and confidence with potential investors, while maintaining a sustainable growth trajectory, he added.
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