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They say that fundraising for startup is the most boring and painful part of the job.
It’s about pitching your idea, having the right approach, recognizing the key players and understanding what motivates the investors.
Understanding funding
Capital Raising is a partner selection process. The early-stage rounds of funding include:
Seed funding is essentially the kick-off stage where you test your startup idea, create a Minimum Viable Product (MVP), and validate whether it clicked with your target audience.
This investment typically comes from angel investors, seed funds, accelerators, or even friends and family who trust your vision.
Series A funding occurs when your startup idea is validated and you need to scale operations.
It wants you to have a better team and gain more of the market. Usually led by V.C.s, the backers are looking for real traction and a credible plan for growth.
This takes a lot of planning and execution for both rounds. The trick is to find the right type of investor for your stage, and pitch accordingly.
What early-stage investors look for in startups
First, It’s important to know what Indian investors need before pitching. Here’s what they usually consider:
Market opportunity:
Investors need to understand whether the problem that you are tackling is substantial enough to make building a business worthwhile.
Is the market big and expanding? Does your solution have the ability to generate a meaningful difference?
Team strength:
More than your product, your team is the thing in the early days. Do you possess the right mix of skills, experience, and passion to deliver on your vision?
Traction:
Maybe it’s user growth or partnerships, or even a waitlist for your product. Anything that demonstrates a market demand adds credibility to your pitch. In simple terms, it’s a question of revenue.
Unique value proposition:
What differentiates your product or service from what’s already on the market? These sound bytes should be clear and compelling.
Financial plan:
Even at the seed stage, you have to show that you’ve put some thought into your revenue model and you’ll be able to deliver returns for investors in the long run.
Crafting a winning pitch
Making the number come to life through narrative is much more engaging and confidence inspiring in space. Here’s how to build a pitch that appeals to Indian investors:
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Start with the problem
Start off by clearly articulating the problem you are trying to solve and make it relatable. Use data to demonstrate why this issue is important.
Introduce your solution
Present how your product or service solvesFundraising for startups in a way that is unique to you. Do not use industry jargon—keep it simple, focus on specific achievements and impacts.
Highlight your traction
Use customer quotes, early sales, or app downloads to show evidence your solution works and has demand in the market.
Market opportunity: Do explain
Market quantification Cite numbers to support your claims, and explain how you will capture a big share.
Showcase your team
Say what your team brings to the table and why you’re the right people to make this idea happen. Emphasising key achievements or relevant experience
Present a clear ask
Be clear about what funding you’re looking for and what you would use it for. Provide a detailed budget to demonstrate to investors that you’ve been rigorous.
Finish with the vision
Finish by painting the long-term picture. What do you envision for the company five years from now? They want to see that you’re thinking big.
Where to look for seed funding in India
Angel investors
Who they are: Wealthy individuals who use their own money to make investments in startups.
Why it’s valuable: Angels often come with both industry expertise and connections, in addition to capital.
How to go about it: Angel-list, LetsVenture and Indian Angel Network are some of the platforms that connect you with active angels. Also, read startup news for the latest developments.
Accelerators and Incubators
For example, Y Combinator, Techstars, Indian Programs like Axilor Ventures, CIIE. CO.
Why they are valuable: These programs provide mentorship, networking and seed investments in exchange for equity.
How to apply: Find out what the different accelerators focus on and make sure your business aligns with that.
Seed Funds
Illustrations: Blume Ventures, Kae Capital, India Quotient.
The costs for using seed funds: Seed funds typically focus on earlier investments, and they can help you get to Series A sooner.
How to get in: Use warm introductions or apply directly using their websites.
Alternative Sources
Crowdfunding: You can raise small amounts from many individuals on platforms like Ketto or FuelADream.
Grants: Research government initiatives such as the Startup India Seed Fund or industry-specific grants.
The Series A Fundraising for Startups
Once you’ve proven your safe to fall baby with seed funding, it’s time to go bigger. Here’s a guide to Series A funding:
Get ready for a microscope examination
Series A investors dig into your financials, customer acquisition metrics, and plans for growth. Have your books in order, metrics put together.
Build relationships early
Series A can involve institutional investors such as VC firms, unlike seed funding. Network, attend conferences, join start-up hubs, and use professional sites to get connected with powerful people.
Focus on scalability
VCs want to know that you’re past proof of concept and ready to scale. Emphasise how their investment is going to help you grow.
Stand out in a crowded market
Investors want to see some healthy competition as well, and be sure to deliver why your business is uniquely positioned to overcome competitors.
Target the right VCs
Some focus on particular sectors, while others want to at a certain stage. Be sure to check research VCs to see if their investment thesis aligns with your business.
Learnings from the Indian investor ecosystem
And when you network, network like your life depends on it
In India, warm intros usually are the way to getting in front of investors. Use your personal network, get involved in startup events, and don’t hesitate to request referrals.
Nail the follow-up
When contacting investors after your pitch, do so with any additional information they request and in a timely manner. (While not being annoying.) But persistence can separate you from the rest.
Be transparent
Investors appreciate honesty. If there are challenges in your business, admit to them and outline the ways you’re working to mitigate them.
Show passion, not desperation
If a founder is confident and passionate about a vision, investors are inclined to fund her. Build a relationship and not just beg for funds.
Common mistakes to avoid
Overpromising
There are no guarantees and setting unrealistic expectations can be counterproductive. Be aspirational, but also accountable when talking about timelines or financial projections.
Neglecting legal and compliance matters
Do not forget to be compliant with your business with all necessary regulations. If you skip this step, it could chase away potential investors.
Pitching too early
Wait till you feel ready before you pitch. Keep your MVP, metrics, and pitch deck game on point before reaching out to investors.
Failing to do your homework
Understand your investors. Have an understanding of their portfolio, the size of investment, and areas of interest before making contact.
How FocusStartup can help
There’s strategy and creativity to securing funding — it’s planning, relationship-building and persistence. We don’t stick to the basics, at FocusStartup we help you with guides based on your industry, growth stage, and you.
For mentorship: Book an appointment with us.
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With over 17 years of experience in Sales, Marketing, Team Building, Mentoring, and Client Servicing, Saurabh has built a strong foundation in driving business growth and strategic development.
He is the Founder of Mostech Digicom (formerly known as Mostech Softwares), where he played a pivotal role in establishing the project team from scratch. Over the last decade, he has successfully led the content strategy team, delivering impactful results and helping brands strengthen their digital presence.
Saurabh has recently expanded his expertise by leading two new ventures—IndianSportsBuzz.com and FocusStartup.com—both designed to cater to dynamic industries, providing valuable insights and resources for their respective audiences.
Academically, Saurabh holds a B.Sc. degree in Computer Applications (Hons.) and a Postgraduate degree in Business Management (Marketing). His ability to blend technology, marketing, and business acumen makes him a visionary leader in the digital space.
With his deep industry knowledge and leadership experience, Saurabh continues to drive innovation, mentor teams, and build strategies that create lasting success for businesses.
