When it comes to startup funding, it doesn’t matter how well-practiced or elegantly designed your pitch is; most of the venture capitalists will spend most of the time exploring the nitty-gritty details that might impact the whole investment. For instance, it could be the industry knowledge, founder’s track record, traction, company’s financing table.
Want to know what almost every venture investor looks for before participating in any fresh startup fundraising in India? If yes, then keep on reading to know more in detail.
Normally, we would like to describe it in three different parts. However, keeping it short and simple, we would prefer to share that investors look for a set of contemporary skills and motivation, which is necessary for problem-solving in the long run.
A common question they might ask you can be, “Why did you start this business?” They invest their time to see how the founder or entrepreneur is working on their business. In simple words, their efforts show skin in the game and how strong and successful their motivation is to solve any unforeseen problems. Because as established business tycoons say, A startup owner with a major fallback will never chase profitability with the same inclination as an entrepreneur who cannot afford to lose in any situation.
You may see many reputed entrepreneurs howling with the fact that investment proposals are made to be broken. As a capitalist, one would never prefer to ignore the thesis in the heat of the moment. In case they do so, they certainly regret it later on. Keep in mind that guidelines exist for a strong reason. Suppose any of the ventures/ideas looking for whopping startup funding in India focus outside the primary area. In that case, they need to explain why their startup is the right fit to help them flourish in the competitive market.
Business models with strong hypotheses are more successful and profitable by potential investors. In addition, such examples/ideas make them think about how valuable and exclusive they define the industry in the long term.
Normally, when one looks for reliable investors for startup funding in a thriving nation like India, they are also pretty much aware that their list of investors receives more than a hundred applications on a daily basis. Their inbox is full of funding requests from logistics to last-mile delivery and pet commerce.
While all such flourishing businesses might be necessary or good for your region, most of them will have clear winners. Take into account the fact that venture capitalists just favor more of the startups that address the present and future challenges. Instead of covering the harsh facts, it is much better to face the harsh facts, explain how your startup can bring a transformation, and settle things on the right track instead of covering the harsh facts.
Ultimately, every investor you are going to approach for your startup funding in India will be valuation-sensitive. Therefore, it makes sense to evaluate your startup in the first place because every investor on your list will consider all the influencing factors. Try to be good enough so that the investors can’t ignore your proposal.
Also Read: How to Select an Appropriated Office Space for Startup?
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