Points to remember when raising funds for your startup

Online pitch deck and assessment report for startups

One of the toughest challenges that startups face is to raise capital at the beginning of their entrepreneurial journey.

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  • Raising your first round of funding is probably going to be the toughest part of starting upit certainly is for most startups
  • Break your fund requirements by risk stages as different classes of investors participate in different risk stages of a venture

Angel investors

  • Participate at starting up stage – they invest at a ‘concept risk’ stage i.e. when niether the concept is proven nor the capabilities of the team to execute that concept
  • Investment amount is small – enough to sustain operations till the venture becomes ready for institutional capital
  • Usually take a bet on the entrepreneur – hence the quality of the founding team is critical

Venture Capitalists – VCs

  • VCs typically invest when the concept and business model is proven
  • Funding is usually for growing the…

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