Startup companies need to grow and in order to do that, they will require capital from outside. A few startup companies do successfully bootstrap (self-fund) themselves, but they are the exceptions.
Without startup funding, the vast majority of startups will die. A few startup companies do successfully bootstrap (self-fund) themselves, but they are the exception. Fundraising can be exciting but at times hectic and stressful. In order to maintain the momentum one needs to secure favourable terms, founders can streamline this by being proactive about both their process and organization.
Ramya Ramachandran, Founder CEO, Whoppl Global Private Limited who deals in the space of influencer marketing. “I think, one needs to be adamant and bullish to be crystal clear as to why any investor would come on board or why one wants this system to be in place?” she adds.
While discussing the resistance faced during the funding rounds, Sachin Wadhwa, Co-Founder and COO, BookMyCharters explains that the toughest parameter to cross was to explain how the company will address the global demands being located in India. Wadhwa emphasises and shares, “That’s the power of globalisation and the internet. We are developing a unique technology which will work as an enabler.”
“Bollywood and production houses have shown great interest in our industry space particularly. In general, influencer marketing in the gaming industry is a big space,” explains Pranav Panpalia, Founder, OpraahFx. “I haven’t reached out to venture capitalists for funding as yet but I am looking forward to the right time to raise off fund as once I have structured roadmap for the company in place,” mentions Panpalia while speaking at one of the panel discussions at BW Disrupt 30 Under 30 Summit and Awards recently organized by BW Businessworld.
Startup companies need to purchase equipment, rent offices and hire staff and more importantly, they need to grow. In almost every case they will require outside capital to do these things. The initial capital raised by a company is typically called ‘seed’ capital that is critical to getting their company off the ground.
It is worth pointing out that startup investing is rapidly adapting to the changes and evolving. Fundraising is necessary, and sometimes a painful task most startups must periodically endure. A founder’s goal should have to have clarity of the structure of the venture and to raise capital as quickly as possible; this will eventually help founders successfully raise their first round of venture financing.
Source: Business World