With the striking advances in technological innovation in India, the venture capital market is becoming increasingly competitive. Ensure that you put your best foot forward to convince an investor. Otherwise, you might miss out on golden opportunities. Research shows that out of 100 startups, only two or three are able to make it to the next level. So if you are aiming for venture capital firms in India, you must start with the right set of things.
Knowing how to raise capital in India is critical as the market is so huge that there is enough chance of losing potential investors. Here are a few simple tips that can make it easier for you to attract venture capitalists.
4 Things You Should Do To Attract Venture Capital Firms
At the end of the day, it is solely your decision whether or not you want to raise capital from investors. You may not need them if you are dreaming of a small-scale business that can easily run on dumb money. But if you want to bring a change to the society or the world, relying on smart money is the only option.
Choice is yours! Do share with us your views regarding fundraising. For more information on how to raise capital in India, feel free to get in touch with us at Merger Alpha.
Happy fundraising!
Knowing how to raise capital in India is critical as the market is so huge that there is enough chance of losing potential investors. Here are a few simple tips that can make it easier for you to attract venture capitalists.
4 Things You Should Do To Attract Venture Capital Firms
- Chase The Right Investor
Try to chase investors personally rather than chasing firms. Venture capital firms usually have a number of investors working together each with their own set of choices; knowing them personally can be a wise step. You will find it easier to communicate with them on a personal level which will increase your chances of getting capital.
- Know How Much To Raise
If you want to go by the book, ask for an amount that you think you rightly deserve in the first round. Asking too high or less than that can put you into trouble. Move forward with realistic expectations and raise capital for only those milestones that you can achieve at this stage.
- Have Something Unique To Offer
Innovative things catch faster attention. If you have something unique in mind that can bring a positive change in the society, it is in. It can be a new product or service or an existing one with a new feature. Basically, it should be something that the target market has long been waiting for. Investors believe that only new and innovative things can get them the market they need to make profit.
- Have A Scalable Business
You might have heard that venture capital firms love to pour money in businesses that are scalable. Now what is this scalability? It is the ability of your business to multiply in revenue with minimal incremental cost. Basic things that can help you build a scalable business are a scalable idea (may not be cool always), a reliable management team, an attractive business model, a working model, strong marketing strategies, outsourcing of non-core task, etc.
At the end of the day, it is solely your decision whether or not you want to raise capital from investors. You may not need them if you are dreaming of a small-scale business that can easily run on dumb money. But if you want to bring a change to the society or the world, relying on smart money is the only option.
Choice is yours! Do share with us your views regarding fundraising. For more information on how to raise capital in India, feel free to get in touch with us at Merger Alpha.
Happy fundraising!