Fundraising

Essential Funding Strategies for Early-Stage Entrepreneurs to Bridge the Capital Gap

While many small businesses face challenges securing traditional financing, today’s funding landscape is offering creative solutions for entrepreneurs.

Let’s talk about the elephant in the startup room – funding. It’s not the most thrilling topic, but it’s absolutely crucial for turning your business dreams into reality. Cash flow problems are one of the primary reasons startups fail. But don’t let that discourage you – with the right approach to funding, you can build a sustainable business.

Think of funding as the fuel for your business journey. You might have the sleekest vehicle (your brilliant idea), but without enough gas in the tank, you won’t get far. While many small businesses face challenges securing traditional financing, today’s funding landscape is more diverse than ever, offering creative solutions for resourceful entrepreneurs.

Understanding your funding landscape

The days of walking into a bank being your only option are long gone. While traditional loans still have their place, there’s now a whole menu of funding options to choose from. Modern entrepreneurs have access to crowdfunding, angel investors, venture capital and peer-to-peer lending. Successful entrepreneurs often utilize multiple funding sources to power their early growth.

In the dynamic world of online sports betting, platforms like https://onlinesportsbooks.ltd/ have demonstrated how innovative funding approaches can fuel rapid growth. The sports betting industry has seen remarkable investment activity, with successful platforms leveraging multiple funding streams to scale operations and enhance user experience.

Building a compelling funding strategy

Think of your funding strategy as your business’s game plan. It’s not just about knowing where to look for money – it’s about making your business irresistible to potential funders. Businesses with solid financial projections and clear growth strategies consistently attract more funding. It’s like preparing for a first date – you want to look your best and have great stories to tell.

Risk management essentials

Smart risk management is crucial for long-term business survival. It’s like having insurance for your business journey – you hope you won’t need it, but you’ll be glad it’s there if you do. This means keeping some cash reserves (your business’s rainy day fund), having multiple revenue streams (don’t put all your eggs in one basket) and maintaining tight financial controls (knowing where every dollar goes).

Preparing for success

Success in securing funding isn’t about luck – it’s about preparation. Thorough preparation of funding documentation is a key factor in securing investment. Think of it like training for a marathon – you can’t just show up on race day and expect to win. You need to build your credit score, grow your professional network and keep your financial records spotless. Remember, potential investors will look at your business under a microscope, so attention to detail isn’t just important – it’s essential.

Funding Your Business? 5 Different Ways to Start Off Strong

Having the right funding in place is essential for launching your startup and making it successful, we’re discussing five different ways to fund your business.

There’s no question that starting a business can be an intimidating venture, but it doesn’t have to be overwhelming. Having the right funding in place is essential for launching your startup and making it successful, so today we’re discussing five different ways to fund your business. Whether you’re just getting started or you need money to keep driving growth, there are solutions available for entrepreneurs of any budget level. We will discuss angel investments, crowdfunding, venture capital, and more – all geared toward helping entrepreneurs make informed decisions on the path they want to take. So if you’re looking for advice on how to finance your business venture confidently and successfully, read on!

Know Your Start-Up Costs

As an entrepreneur, it’s easy to get caught up in the excitement of bringing your business idea to life. But before you start the process of looking for funding, it’s crucial to take a step back and understand the reality of your start-up costs. Knowing your start-up costs is essential for two reasons: one, it helps you determine how much money you’ll need to get your business off the ground, and two, it helps you create a realistic business plan that will guide you toward success. So, before you start looking for funding options, make sure to take the time to truly understand the costs associated with starting your business.

Self-Funding With Your Own Assets

Starting your own business can be an exciting but daunting task. One of the biggest challenges entrepreneurs face is finding ways to fund their business ventures. Self-funding is a great option for those who want to retain control and ownership of their business. There are several ways to go about self-funding, from dipping into your own savings to taking out a loan against personal assets. Don’t forget to consider seeking help from family members as well. While it may seem challenging to gather the necessary funds to get your business off the ground, it’s important to stay creative and open-minded. With determination and careful planning, you can turn your dreams into reality.

Crowdfunding for Both Marketing and Funding

Are you an aspiring entrepreneur looking for ways to fund your business idea? Look no further than crowdfunding! With platforms like Kickstarter and GoFundMe, you can connect with potential supporters who believe in your vision and are willing to invest in your success. Not only does crowdfunding provide a source of funds for your business, it also allows you to test the waters and gauge interest in your product or service before it even hits the market. If through this process you get some early buyers of your services, you can even use accounts receivable financing for businesses through a bank or credit union, where they’ll help you get money early from promised or regularly scheduled payments. Plus, by sharing your campaign on social media and other channels, you have the opportunity to reach a broader audience and gain valuable exposure for your brand. So don’t let lack of capital hold you back – give crowdfunding a try and see how it can take your business to the next level.

Business Loans for Your Particular Costs

When it comes to starting a business, securing the necessary capital is usually one of the toughest parts. This is where business loans come in. When working with a professional who specialises in business loans doncaster (or in an area closer to you), entrepreneurs can access the capital they need to get their businesses off the ground. Small business loans and microloans are two popular options that entrepreneurs can consider. Small business loans may be better suited for established businesses that need a larger amount of capital, while microloans may be a good fit for smaller startup expenses. Doing your research and exploring different types of loans can give you a better understanding of what type of financing is best for your business.

Angel Investors Who Help Make Dreams Reality

Angel investors are the unsung heroes of the business world. These individuals are willing to invest in the dreams of aspiring entrepreneurs and help them turn their visions into reality. If you’re looking to start a new business, finding an angel investor can be the difference between success and failure. While it can be an intimidating prospect, reaching out to these investors can be incredibly rewarding. They offer more than just financial support; they can also provide valuable guidance and mentorship as you navigate the complex world of entrepreneurship. So don’t be afraid to seek out angel investors and take your business to the next level.

Venture Capitalists Who See Something Promising in You

For any early-stage business, securing the right funding can make or break its success. That’s where venture capitalists come in. These specialized investors provide capital to businesses with high growth potential but also bring a wealth of industry knowledge, strategic guidance, and valuable partnerships to the table. For entrepreneurs with big ideas and even bigger ambitions, partnering with venture capitalists can be the key to unlocking the resources and network necessary to turn those ideas into reality. If you’re looking to take your business to the next level, securing a partnership with venture capitalists should be high on your priority list.

To conclude, funding a business startup is not easy, but it can be done with the right strategy and knowledge. Take the time to thoroughly research each option, so you can determine which funding method will work best for your business. Although becoming a new entrepreneur can be a daunting task, it can also be incredibly rewarding when you finally launch the business of your dreams. With hard work, determination, and the right funding sources, you are sure to find success in launching your business and will reap the rewards of your investment. Throughout this article, we have outlined some of the most common ways that aspiring entrepreneurs can fund their business such as self-funding, crowdfunding and leveraging investments from angel investors or venture capitalists. So if you’re motivated to pursue a passion project and become an entrepreneur – start researching yourself today and make sure that whatever model of financing works best for you is the one that you choose!

4 Ways to gain attention from VCs

An entrepreneur should build a strong case first by getting to know someone from the company and then approaching the VC in their area of interest.

Each day venture capitalists and investors receive over hundreds of cold emails and meeting requests from start-up founders and small time entrepreneurs. It is difficult for VCs to process and select the start-up they want to fund that way. Instead, an entrepreneur should build a strong case first by getting to know someone from the company and then approaching the VC in their area of interest.

In the following ways, you can look out to attract more VCs for funding:

1. Innovative solution to a problem

Focusing on the problem and devising a solution is the key to getting more investors for your venture. In this era of cut-throat competition, simply coming up with a new idea isn’t sufficient. The idea needs to be worked on and presented in a complete manner with business suggestions, marketing tactics and target group mentioned in a well-compiled presentation. VCs will choose the most differentiated and rounded appeal which they find will enhance their chances of making profits as well. A revamped version of a done and dusted idea will instantly be rejected by the VC.

For instance, OYO rooms was a completely different and innovative idea which is why they have huge investors like GreenOaks, Sequoia Capital etc.

2. Assumptions must be challenged on a continuous basis

Start-ups often stick to the original plan they have devised which is why they don’t grow with time. However, the basic thesis must be challenged from time to time as the markets are dynamic and constantly evolving. Assumptions must be proven or eliminated through basic research methods for a more rounded understanding of the business.
Once you are clear with all the factors related to your business, pitching to a VC becomes easier for you and the VC is also clear about what he investing in.

3. Think beyond the horizon and act

If you have a unique insight and are able to present it well in front of the VC, chances are that he will invest in your business. VCs don’t want to invest in an area beyond their zone or one that they think is not feasible. A VC doesn’t want to invest in an idea which is not innovative either. Hence, one needs to have a clear vision and come up with unconventional methods of making it work in the future. Strategic investors are more likely to invest in ventures that have an articulated vision of what they want to become in the future.

Related Post: How to raise money for your startup?

4. Build a strong team of dedicated individuals

Founders need to encourage significant contributions to the start-up from people from different backgrounds. You must have a mission that is big enough to source human resource for different fields. Finding an entrepreneurial crew that wishes to guide their wider team as well as customers, markets and investors to a better future with conviction and humility is a time-taking but rewarding process.

A VC’s research will tell him about your dedicated team and your strong leadership which will definitely be a huge contributory factor for him to invest because strong leadership skills and a set vision are the keys to a success.

If you follow these rules, you will definitely find a great VC to invest in your company. We wish you all the best on finding a VC and on your start-up.

Image Credit: americaschoicecredit.com

How to find investors for a small business

Small business owners know that raising money to start a new company can be a challenge – how can you find someone willing to back your dream, with no guarantee of success?

You have grand plans for expanding your small business—but can you afford to make it happen?

Small business owners know that raising money to start a new company can be a challenge – how can you find someone willing to back your dream, with no guarantee of success? They can seek the services of experts like Judah Karkowsky as that can prove really beneficial for their business.

It can be done, once you know how to find investors for a small business—keep reading to learn more.

Look for Small Business Grants

You might be surprised that one of the best places to find small business funding is through the government! The U.S. Small Business Administration offers a wide range of grants to help small businesses get off the ground and achieve their goals.

It’s done to help provide stimulation to the economy and it can be a fantastic funding source for your business. You might also be eligible for a zero or low-interest government loan, which can help you get started without needing to worry about hefty interest repayments.

Consider Crowdfunding Sites

Have you heard of crowdfunding? It’s a concept where many people contribute a very small amount of money to get a business going, rather than a small number of investors providing large amounts of money.

You might want to try looking for startup investors on sites like Kickstarter, Indiegogo, or Kiva. For the best chance of success, be clear about both your business goals and what you’re offering investors in return.

Reach Out to Your Network

When thinking about small business investors, many people start by reaching out to their own networks. Friends, family, and business associates are all possibilities when it comes to funding, so think about asking them in a respectful and kind way if they’d be willing to support your new venture.

Be sure to share your investment opportunities on social media, especially LinkedIn, so that it reaches a wide audience.

Try Private Equity Firms

Private enquiry firms are a more traditional funding source, especially if you need large amounts of capital. They can provide the financial backing to get your business up and running.

However, before you approach any investors, especially large firms, you need to make sure you know how much your business is worth, with clear and achievable goals for the future.

These business valuation methods can help you learn more about how much your business is actually worth.

Learn How to Find Investors For a Small Business With These Tips

Are you ready to launch your amazing new business? To give yourself the best chance of success, use these ideas to learn how to find investors for a small business.

It helps to be patient and to prepare for the occasional rejection. However, with enough time and effort, you’re sure to secure the funding you need for your business.

Get started today by preparing a comprehensive plan to showcase to potential investors—it’s sure to pay off!

Was this article helpful? If so, please read on to find more entrepreneurial and business tips.

How the right kind of financing can help businesses thrive

Taking money from the wrong source can frustrate your efforts in growing your business. Here are the benefits of acquiring funds from suitable sources.

Whether starting a small- or large-scale business, you will need capital to set up the business. This includes money to rent or lease a shop, purchase products, acquire a license and buy business tools.

Today, there are many lenders out there, and you need to be careful whom you borrow money from. Taking money from the wrong source can frustrate your efforts in growing your business. Below are the benefits of acquiring funds from suitable sources.

Enhances Business Growth

Financing with Private Equity Representation can help you expand your business seamlessly. If you have one office, you can open other branches, especially when you have customers across various regions. This makes your customers reach out to you quickly and enables you to serve them well.

It also helps you cut costs and time-traveling miles down so that you can continue to serve your customers and return to the office quickly. You will employ new staff in those areas to attend to your customers effectively.

Boosts Sales

Marketing your brand can be costly, and you may not have money to promote your business. But when you acquire financing, you can set up marketing campaigns to promote your products or services. This can eliminate the most significant barriers towards generating leads and closing sales.

Marketing gets your products to the doorsteps of your target audience and helps them make informed purchasing decisions. For instance, you can run offline and online targeted marketing campaigns and generate quality sales while also promoting brand visibility using the funds.

Improves cash flow

If your business has been stagnated for a long, you have an option to get financing and revive it. When you acquire finances, you can devise creative strategies that will promote the growth of your business.

For instance, if one of your products isn’t doing well, you can find ways to make it better or do away with it and introduce another product. All these strategies need financing. Once you streamline your business operations, you can be sure of a healthy cash flow that will protect you against future financial risks.

Earns You Repeat Business

Financing enables you to offer satisfactory services to your customer since you will have enough cash to streamline services and also acquire the right tools for your business. This builds trust and brand loyalty and makes your customers come back for more services. It is also an easy way to get referrals from satisfied customers. This guarantees business growth and expansion in the long run.

Before you acquire financing for your business, you need to shop around for credible lenders to avoid disappointments in the long run. This helps you run your business seamlessly, promoting productivity and growth.

Everything you need to know about early stage VC funds

There are heaps of financial alternatives for firms trying to innovate and expand. However, one of the common options is venture capital funding.

There are heaps of financial alternatives for firms trying to innovate and expand. However, one of the common options is venture capital funding. When you’re one of the business owners trying to find the appropriate assistance program, perhaps you need to take a closer look at early-stage VC funds. This may give you an overview of the procedure.

You don’t have to be an expert in financing to understand the entire concept. The process is pretty straightforward, as long as you take note of the basic terminologies and the benefits you can get, then you’re good to go.

Venture Capital

Pooled investment funds that control individuals’ cash looking for private equity stakes in SMEs with high potential growth are known as venture capital funds. Usually, these investments are categorised as high-risk-high-return options.

Previously, early-stage VC funds were exclusively granted to credible venture capitalists. But today, accredited investors have higher chances of getting involved in venture capital investments. But these are still not readily available to ordinary investors.

The Process

This is the kind of asset financing that provides small businesses or entrepreneurs with the chance to gather funds prior to earning their income or starting the operations. Venture capital funds are recognised as investment transporters aiming to invest in enterprises that present high-risk-high-reward opportunities based on their asset, size, and product development level.

These funds are different from a hedge or mutual funds since they concentrate on the early-phase of investment. All companies that are given venture capital investments hold a strong potential growth with long investment paths and are risky. These venture capital funds hold a more vital involvement in their investments through having a board seat. Thus, they have a hands-on and active part in the operations and management of the business.

These investment funds hold portfolio returns that appear like a barbell technique to investing. Most of these funds have little bets on multiple start-up businesses, thinking that one of them will obtain high returns and earn a considerable huge payout. The fund will mitigate the risk of other investments.

Running a Venture Capital Fund

There are several categories of these investment funds: early-stage, seed, and expansion-stage. They all rely on the maturity of the enterprise at the period of the investment. But no matter the level of investment, all these funds work in a relatively similar way.

Venture capital funds, just like all pooled investments, should gather cash from external investors before they make their own investments. Potential investors will be given a prospectus and then extend cash to that fund. All these potential investors who raised their commitment are contacted once the investment amounts are settled.

These investment funds then look for private equity stakes with a high potential of getting positive returns. Typically, this means that the fund’s operators evaluate several business plans as they find firms with high growth potential. Their decisions are based on the prospectus’ directives and the investors’ expectations.

After investing, the fund requires a yearly management charge. But several funds don’t have a fee, only the investor’s returns earned. These fees will pay off the costs of payroll and the general partner’s other expenses.

Venture capital has significantly grown over the years, and financial experts see it as something that could expand exponentially. This investment’s entire procedure is very much helpful to all parties involved, such as entrepreneurs, venture capitalists, lawyers, financial advisers, and accountants. Therefore, regardless of its risks, there are still people who are willing to take their chances.

Got a Business Idea? 4 People you should talk to now to get your funding set up right

Most successful businesses start with a great idea. The next thing they need, though, is the right kind of funding. If you have a great business idea, you’ll want to talk to the following four professionals about how to get your business the right way.

An Accountant

If you’re going to talk finance, it makes sense to start out by talking to an expert. Working with an accountant is an excellent way to make sure that your business idea can feasibly be supported by your finances. A good accountant won’t just tell you whether what you want to do is possible. They will help to guide you on the path to making sure that you are making reasonable financial decisions.

A Loan Officer

Your next stop should be a loan officer. Unless you are planning on bankrolling the entire operation with the cash you have on hand, you’re almost certainly going to need to take out a business loan. Talk to a loan officer about what the application process is like, what you should expect when you apply, and what kind of funding is likely for a business that’s similar to the one that you have dreamed up. You might be surprised by how much information you can get from a simple conversation.

Another Person in the Business

It’s also a good idea to talk to someone else who is running a business of a similar size or in an industry similar to your own. These are the people who have already dealt with the biggest roadblocks to funding and who know all the mistakes you can make. Many of them are more than happy to let you learn from the obstacles they have already overcome. Even sitting down for an hour with another business owner can teach you quite a bit about how funding works.

LinkedIn is a great place where to find people with relevant experience. A simple search for the profile you are interested in, write a small connection request and reach out to them. Once they reply, try to schedule a quick consultation. More often than not you will get a free consultation, and get all your questions answered

A Securities Law Attorney

Finally, make sure that you talk to a lawyer who is experienced in dealing with business financing. A solid securities law attorney will let you know the legal implications of your business plans and will help you to find ways to get where you need to go while still complying with various state and federal laws. A good lawyer will be an incredibly valuable asset as you put together your business.

Always make sure to reach out to professionals about topics like funding. A few conversations can help you to avoid major mistakes, so have them early. Once you know how your funding should be set up, you can start to build your business.

Postman raises $150 million at $2 billion valuation

Postman is a SaaS-based (Software as a Service) API (Application programming interface) development firm that has raised $150 million led by Insight Partners at a valuation of $2 billion

Postman is a SaaS-based (Software as a Service) API (Application programming interface) development firm that has raised $150 million led by Insight Partners at a valuation of $2 billion. CRV and Nexus Venture Partners are existing partners who have also participated in it.

Therefore, it is a high jump in the valuation of company. Last year, it has raised around $350 million at a valuation of $50 billion worth Series B round. In the global markets, the valuation of Postman has increase by 6X times which is a testimony to the rising clout of Indian product companies.

Poster-boys in the local SaaS area are FreshWorks, Eka Software, Zoho, Druva, Icertis. The mentioned companies will be joined by Postman in the coveted list of SaaS unicorns from India.

In fact, Postman has been elevated $207 million in total funding across three institutional rounds with the Series C round. Postman, Bengaluru, and San Fransisco – based firm has 250 staff in its ecosystem and Microsoft, Twitter, PayPal, and DocuSign being its customers.

For building APIs by using a collaboration tool, Postman has assigned 10 million developers across 500,000 organization.

Postman is led by Abhinav Asthana. It has permitted firms to create APIs directly in its ecosystem, maintained a single source of truth along with supports such as API schema, version control, and tagging.

The company charges as per the size of the firms like $8 per user per month for a team of 50 people and $18 per month for larger firms. Asthana stated, “Developers all over the world is rapidly transitioning from the code-first mindset to an API-first mindset with Postman being the center of this revolution.”

Although Postman doesn’t have many rivals, it does battle against API Tester, API Fortress, and Amazon API Gateway.

Gaja Capital invests Rs 204 crore in Navi Technologies

Navi Technologies has made allotments of 1.45 crore equity shares, at a price of ₹140.5 per share. Three entities belonging to Gaja Capital, including Gaja Capital Fund-II, GCFII-B and Gaja Capital India AIF Trust have received the allotments. The latest private placement follows a fundraising of over Rs 3,000 crore by the company, led by Bansal and other investors earlier this month.

Sachin Bansal’s financial services startup Navi Technologies has raised ₹204 crore in fresh equity capital from Mumbai-based private equity firm Gaja Capital and other ultra-rich individual investors.

Co-Founder of Flipkart, Bansal is now also the managing director of Navi Technologies. Bansal has already invested over half of his wealth from Flipkart’s exit on Navi.

Bengaluru-based Navi Technologies has made allotments of 1.45 crore equity shares, at a price of ₹140.5 per share. Three entities belonging to Gaja Capital, including Gaja Capital Fund-II, GCFII-B and Gaja Capital India AIF Trust have received the allotments.

The latest private placement follows a fundraising of over Rs 3,000 crore by the company, led by Bansal and other investors earlier this month. It is, however, unclear if Gaja Capital’s investment is part of the same preferential allotment.

The firm Navi Technologies is not yet disclosing much about its future expansion plans rather than explaining their services. They are highly focussed on making financial services more simple, affordable and feasible for customers. Their website also gives the space and invite people to join in for their initiative.

Gaja Capital, promoted by Gopal Jain, has bets in Chumbak, Avendus Capital and Carnation, among others. The investment in Navi is part of a larger round, mostly subscribed by promoter Bansal.

Bansal has completed his education from well know IIT Delhi. Kickstarted his professional career early. He was previously working with Amazon web services and then joined Flipkart. Gradually became the CEO at Flipkart, he worked there for a total span of more than 10 years.

BankBazaar bags new investment from Amazon in series D funding

This current funding comes more than two and a half years after the global credit rating agency Experian had led a $30 million financing round into the company. It has raised total funding of more than $110 million to date.

BankBazaar, the online marketplace is responsible for aiding customers compare and choose financial products which includes credit cards, insurance, fixed deposits, saving accounts, mutual funds and others over a very secure, user friendly, and intuitive platform. It was Founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty,

BankBazaar has partnerships with more than 80 financial organizations in India including the largest nationalized and private banks, NBFCs and insurance companies so as to offer a never before range of financial products and services.

Bank bazaar is supported by global investors including Sequoia Capital, Walden International, Amazon, Fidelity Growth Partners and Mousse Partners. Bank Banzaar has bagged Rs 29 crore as a part of its ongoing Series D round from existing investors including Amazon, Sequoia and Walden SKT Venture Fund, according to its filings with the Registrar of Companies.

“The funds from this round will be used to further strengthen our position as the leader in securing paperless access to loans, cards, and mutual funds,” Adhil Shetty, chief executive of BankBazaar said.

The company had last raised $59.1 million in a Series C round in July 2015 from Amazon, Fidelity Growth Partners, Mousse Partners and existing investors Sequoia Capital and Walden International. In January 2014, it had raised $13 million in Series B funding led by Sequoia Capital with participation from Walden International.

BankBazaar has issued 12,337 shares to Amazon for INR 5.6 Cr, 15,421 shared to Walden SKT Venture Fund for INR 7.1 Cr, 4,978 shares to GUS Holdings for INR 2.2 Cr, 5,782 shares to Sequoia for INR 2.6 Cr and 3,338 shares to Eight Roads for INR 1.5 Cr.

Beijing-based Legend Capital invests $10 Mn in India’s top Edutech company Vedantu

Edutech companies in India are gaining lot and lot of popularity these days and such companies has seen an unprecedented growth in the recent days.The organization is run by four friends from Indian Institutes of Technology (IITs) – Vamsi Krishna (Co-Founder, CEO), Pulkit Jain (Co-Founder, Head Product), Saurabh Saxena (Co-Founder, Head Academics) and Anand Prakash (Co-Founder).

Edutech companies in India are gaining lot and lot of popularity these days and such companies has seen an unprecedented growth in the recent days. These companies have seen an upswing and witnessing unprecedented curiosity from enterprise
capitalists, hedge funds and strategic buyers.

BYJU’s, Unacademy, Doubtnut and Vedantu are few of top Edutech companies in India right now. Vedantu is an interactive online tutoring platform where teachers provide school tuitions to students over the internet, using a real-time virtual learning environment named WAVE (Whiteboard Audio Video Environment), a technology built in-house.

It is said to operate on a marketplace model for teachers, where students can browse, discover and choose to learn from an online tutor of their choice.

The organization is run by four friends from Indian Institutes of Technology (IITs) – Vamsi Krishna (Co-Founder, CEO), Pulkit Jain (Co-Founder, Head Product), Saurabh Saxena (Co-Founder, Head Academics) and Anand Prakash (Co-Founder). The firm has raised its first round of funding after six months of current operational format.

It has raised $5 million from Accel Partners and Tiger Global Management in its Series A funding Vedantu has raised $11 million in a Series B funding round led by Silicon Valley impact investment firm Omidyar Network and also contributed by its existing investor Accel Partners.

On August 29, 2019, Vedantu announced that it has raised $42 million in a Series C financing round for expansion in India by Tiger International. Beijing-based early and enlargement stage VC agency has invested $10 million (Rs 74 crore) whereas current investor Omidyar Community has joined the spherical with a funding of $3 million (Rs 22.17 crore).

Beijing-based Legend Capital manages greater than 450 portfolios and has $7 billion value property. It has turn into the third Chinese language investor in Vedantu.

Bigbasket raises 150 million dollars from Mirae Asset, Alibaba

Online grocery platform BigBasket has raised about $150 million from Mirae Asset Management, UK’s CDC Group and existing investor Alibaba.

Online grocery platform Bigbasket has raised about $150 million from South Korea’s Mirae Asset Management, UK’s CDC Group, and existing investor Alibaba.

Mirae has pumped in about USD 60 million, while CDC and Alibaba have infused USD 40 million and USD 50 million, respectively.

Early last year Bigbasket had raised $300 million in a fresh funding round led by Chinese e-tailer Alibaba and other investors.

Bigbasket is the largest online grocery supermarket in India. It was launched in 2011, quite about the time when e-commerce was in its nascent stage in the country.

It was founded by Hari Menon, VS Sudhakar, V S Ramesh, Vipul Parekh and Abhinay Choudhari.

Bigbasket was launched at a time when India’s busy workforce in cities was finding it difficult to allocate time to buy groceries and home essentials. Bigbasket gave them the flexibility to place their order anytime and get the things delivered at their preferred time.

It offers groceries and food supplies in various categories such as fruits & vegetables, food grains, oil, masalas, bakery items, beverages, branded foods, personal care products, household supplies, eggs, meat, fish, etc.

According to a TechSci Research report, the Indian online grocery market is expected to grow at a CAGR of 55% during 2016 – 2021.

The tide for online grocery delivery companies including BigBasket seems to have changed as the ongoing Covid-19 pandemic induced lockdown has let Indians discover the convenience of shopping for groceries online.

Industry experts believe that this situation will lead to behavioural changes which will in turn boost orders for online grocery firms.

Agritech platform DeHaat raises $12M in Series A led by Sequoia Capital

It is indeed a proud moment for startup ecosystem of Bihar. Agritech platform DeHaat has raised Series A funding of $12 million led by Sequoia Capital.

Agritech platform DeHaat has raised Series A funding of $12 million led by Sequoia Capital. DeHaat was founded in 2012 by IIT, IIM, and NIT alumni Shashank Kumar, Amrendra Singh, Adarsh Srivastav, Shyam Sundar Singh, and Abhishek Dokania.

It is a technology-based platform offering full-stack agricultural services to farmers, including distribution of high quality agri inputs, customised farm advisory, access to financial services, and market linkages for selling their produce.

DeHaat eases the burden on farmers by bringing together brands, institutional financers and buyers on one platform.

It had earlier raised a $4 million pre-Series A round in March 2019, led by Omnivore and AgFunder, which was topped up in May 2019 with an additional $3 million of venture debt from Trifecta Capital.

Shashank Kumar, Co-Founder and CEO of DeHaat, said: “We are excited to partner with Sequoia India and FMO as we drive towards one million farmers on the DeHaat platform. Sequoia’s deep expertise in B2B platforms and technology products, combined with FMO’s expertise in agricultural value chain financing, will help DeHaat accelerate its growth while delivering massive impact for the farmers we work with.”

DeHaat does not charge any fee for its advisory, but takes a cut whenever farmers use its platform to buy agri-inputs or sell their crop yields.

The company today operates in 20 regional hubs in the eastern part of India — states such as Bihar, Uttar Pradesh, and Jharkhand and serves more than 210,000 farmers.

Udaan Raises 30 Million US Dollar From Trustroot

Bengaluru-based Business-to-Business (B2B) e-commerce startup Udaan raised US$30 million from Singapore-based parent company Trustroot Internet on March 23.

‘Udaan’ is a Business-to-Business (B2B) e-commerce platform, designed to solve core trade problems for small, medium and large businesses across India. It is the largest such national distribution platform of its kind enabling retailers and businesses to source merchandise from manufacturers, brands, white labels, importers etc. on a single platform. udaan brings to users the power of technology to grow their business.

Udaan was established in 2016 by three former Flipkart senior executives–Amod Malviya, Sujeet Kumar and Vaibhav Gupta. Udaan is ahead of competitors like ShopKirana and Jumbotail in business reach, and claims to have matched 20,000 wholesalers to three million retailers in more than 900 cities since its inception.

Last year, Trustroot invested $20 million, $5 million and $10 million in Udaan in May, June and July respectively.

In its valuation report in February, Udaan valued itself at $7.5 billion based on cash flows for nine financial years and equity infusions expected over three years. According to the same report, the firm passed a resolution to receive $51 million in an internal infusion from Trustroot; the latest funding is the first tranche of this expected investment.

“B2B e-commerce is a big market opportunity with 500 million SMEs doing annual trade worth of $600-800 billion” Udaan Co-founder Sujeet Kumar said in an interview last year.

The company is one of India’s most highly-valued and highly-funded startups, with a roster of high- flying investors that includes Tencent, Altimeter Capital, Digital Sky Technologies (DST Global), GGV Capital, Lightspeed Venture Partners and Hillhouse Capital Group.

7 Ways to improve on your startup that will lead to investment increase

There is something to be said to gaining experience through real-life problem-solving in your business ventures, but you can save time by not learning lessons the hard way and fast-track your path to business success.

Experience is largely listed as the single greatest attribute an entrepreneur can cultivate any time they begin a new path to improve the overall odds of success. While that isn’t exactly groundbreaking, the data behind the difference that experience makes is significant:

Founders who have successfully cultivated a business previously have a 30% higher chance of success in their next venture.
Founders who failed at prior businesses have a 20% chance of succeeding the second time around.
First-time entrepreneurs have an 18% chance of success.

Spend Investment Capital Wisely

Again, not groundbreaking advice, but you’d be surprised that this is one of the most common pitfalls for a young company managed by an inexperienced entrepreneur. Early on, companies can be funded through small groups of angel investors, but it’s often the entrepreneur’s own savings.

If you’re fortunate enough to gain investors and raise investment capital through private funding, don’t let it lull you into a false sense of security. This influx of money can help you beef up your team to meet aggressive growth goals, but it can also help you spend ahead of need. Aggressive expansion timelines are more often than not overly optimistic, which can burn valuable resources much more rapidly than a young company can afford.

Most industries already have formulas to work through this, so do your research. Whatever money you end up asking for should be completely planned for and put to good use.

Don’t be scared to invest in your team, but focus on A-players who can play multiple roles early on. Choose quality talent over quantity.

Protect Company Assets

If you’re inventing, intellectual property can be invaluable. Spend early and often on protecting your property. Legal can be invaluable in the product-based business and even in service-based or knowledge-based industries to protect intellectual property.

If you’re attempting to acquire capital, you want investors to feel secure in the fact that their money is going to be relatively protected and that the capital is going to good use. Be prepared to know if patents or trademarks exist and who owns what. Giving investors an understanding of what and how you’ve reached product-market fit is important as well.

Spend your money on attorneys who can provide protection to company assets. Hire a lawyer to draft a solid client contract- poorly worded contracts will cost you.

Spend Time Creating Revenue-Driven Solutions

Services or technology that easily demonstrates ROI in a direct manner is low hanging fruit for young companies. Plenty of companies succeed by focusing on solutions that drive savings to their clients, prospects get more value (and buy more frequently) when solutions are revenue-driven.

Understand Your Timeline

When working on bringing transformative technology to the market, it’s important to remember that often, this solution is disruptive. This can create a situation where users have to adjust their systems and processes in order to experience the best results possible.

This is challenging- people don’t like change. No one does. But big and meaningful change takes time which can present a challenge, as clients won’t experience results immediately. If your business is built around disruptive tech, it’s important to set expectations at both the client level and the boardroom level. The potential for reluctant transition with clients is absolutely there and you must set reasonable expectations at all levels about delayed returns.

These are not easy conversations to have as they’re difficult realities to accept when real dollars are being spent and you’re burning through capital every month.

Invest In PR Early

Many founders consider public relations and media outreach to be fluff- something that is a lower priority until you have a bigger budget. However, securing placement in reputable publications when you first hit the market can help a young company in a number of ways. Targeted exposure is extremely effective in getting the word out, driving an initial wave of leads.

Articles in respected publications can enhance buy-in and help prospects convince stakeholders to take a leap with new tech or a new process. Press can help substantiate timeliness, but more importantly, it can help educate prospects.

Build Outside Relationships

Building relationships with third parties will allow you to establish relationships that can vouch for your work. This provides ongoing value for a young company and its emerging technology or services. This can take the form of validating success through white papers, third-party research, or case studies.

Have Reasonable Expectations

People assume that launching a tech company brings overnight success and riches, but it doesn’t typically work that way. Most things of value take time and it’s incredibly important to remain resilient and flexible. Learn quickly from failures and mistakes and then regroup as necessary to press on towards success.

Building a successful business is incredibly difficult. By taking your time, doing your research and starting from the beginning can help you get your startup off the ground. Make sure you do the proper steps to plan the remaining steps to launch the company and prepare yourself so that you’re ready to raise money.

Without proper financial planning, your business doesn’t stand a chance. Make sure you’re network is on point too- you’ll want to surround yourself with the right people. It’s incredibly important to find people who can help you in areas that are not your strongest point of expertise.

Placing your business in the best position to establish a steady clientele will help to grow your startup. Launches are never perfect- you should always prepare for unforeseen circumstances. Proper planning is absolutely crucial to help you clear and anticipate any hurdles.

7 Expert tips for finding safe sources for business investment

If your business is already started, but you need investment money to take it to the next level, you also have a challenge.

Getting a business going is the dream of every entrepreneur. Unfortunately for some, finding safe sources of money can be the one thing keeping them from pursuing their dreams. Safe sources of funding not only help startups get going, but they can help them get over the five-year hump that takes out many small businesses.

If your business is already started, but you need investment money to take it to the next level, you also have a challenge. You might have to take on debt or give up a share of your business. When looking for money for a pre-existing business, the investors will take several factors into account, including the age and performance of the business. They will also want to know what your market is and the opportunities for growth.

These seven tips will help you find safe sources for business investments. It is best to find the perfect fit for your business and financial needs.

1. Review and revise your business plan

While writing a business plan isn’t a guarantee that your business will be successful, it does show potential investors that you actually have a plan. Before you turn to potential investors to ask for money, take a close look at your business plan to see if it is viable. Look closely at your startup plans and how you plan to keep the business going for the first five years.

Then, make changes that will entice an investor. Conduct research about your market and clearly show how you plan to take your small business and make it scale. Create a budget and show how you plan to function within its confines. Investors want to see how you plan to spend money to make money. Investors don’t want to give away capital, they want to make money off of it.

2. Use an online financial source

Some companies focus on investing in businesses. You can find more information at equifyfinancial.com. Investment websites like this are dedicated to helping businesses get the equipment they need so they can take their businesses to the next level. Equify Financial looks for reasons to invest in a business, while others look for reasons not to invest in a business.

3. Consider crowdfunding

If you have a product that will get the attention of the general public, you might consider crowdfunding. Of course, to get money from the crowd, you have to offer something to the crowd. If you entice the general public with rewards that they cannot resist, they will invest in your idea. As long as you eventually bring the product to the marketplace, this is a safe form of financing that has proven to help businesses find success.

Crowdfunding will quickly tell you if your idea will succeed. Crowdfunding websites can be geared toward investors or the general public. If neither group shows interest in your idea, then your idea probably won’t make money in the long run. Or, it might need a subtle tweak to make it an idea that people will consider supporting.

4. Find a strategic partner

Sometimes you just need a partner. When you work with a partner, you not only get a second brain to bounce ideas off of, but you also get a second wallet. With a strategic partner, you also reduce your personal liability, because both of you are on the hook for the business.

The problem with a strategic partner is that you do have to split everything, unless you decide to use a different partnership.

As the mergers and acquisitions experts mention here neumannassociates.com/white-plains-ny, if you do decide to find a partner, be sure you set everything up with a lawyer so that you can work through issues before they arise.

Often the best strategic partnership is where each partner brings something unique to the table. You might be the person who works with marketing, hiring, and sales. Your partner might be the person who works well with finances and accounting. If you’re both good at the same things, then the partnership might not be needed. Consider each other’s roles before you commit to sharing the business.

5. Turn to your local bank

If you have a relationship with your local bank, you can always go there to ask for an investment. Banks do have to follow protocol, so they might have to offer the investment in the form of a loan. Or, they might want a percentage of your business. Banks are generally safe sources for investments, but you have to play by their rules.

6. Try the SBA

The Small Business Administration provides loans to small businesses that need money to startup or to grow. They usually back loans from commercial banks. They also require the business owner provide a percentage of the capital for the project. To keep their interest rates low and their funds guaranteed, they require that businesses put up assets for security.

SBA loans are usually approved within a week, so they are a good source of quick funding, as long as the requirements are met. If you cannot get a loan through a local bank, look for a local bank that uses SBA money.

The SBA does have strict rules for repayment and default. In many cases, if you default on an SBA loan, you might need to try to restructure the loan. Otherwise, the federal government will put your business and you into collections.

7. Use your money

Another safe source for business investments is your own money. If your business has made profits, you should be able to reinvest the money into the business. If you are starting a new business, most lenders and investors will ask that you put some of your own money into the project. This shows investors that you believe in your idea and are willing to take some risk to get it going. If you are unwilling to take a risk with your own money, why should a complete stranger give you money?

Some people prefer to use a personal credit card as a safe source for business investment. Consider the interest rate before you use a credit card. If you do use a credit card, set up a payment plan so you do not accrue an excessive amount of interest.

MSME lender Aye Finance raises Rs 233.6 crore in the Series D resulting into two fund raise in the same year

Aye Finance raised Rs 233.62 crore in a Series D equity round led by Falcon Edge Capital

“We are privileged to have closed Series D funding within a year of the last equity round. The funds will help us continue the strong growth in lending to micro enterprises. Our enhanced focus on machine learning has benefited from the mentorship of Google Launchpad programme and this has enhanced our ability to create a transformative change for the excluded micro enterprises,” said Sanjay Sharma, Managing Director, Aye Finance.

Aye Finance is a MSME lender and it raised Rs 233.62 crore in a Series D equity round led by Falcon Edge Capital, a New York based investment firm.

Within a year of raising money from CapitalG, Aye Finance raises Rs 233.6 Cr in Series D.

Other existing investors in Aye Finance like CapitalG, LGT and MAJ invest also participated in this Series D fund raise round.

Aye Finance was founded by Sanjay Sharma and Vikram Jetley in 2014. It has around 104 branches in 11 states and has served more than 1,00,000 micro enterprises. They have a loan book of over Rs 1,000 crore.

“The funds raised will be utilized to drive business growth and develop its technology and data mining capabilities”, said the company.

“We focused on MSME and SME lending as a significant yet under-served financing opportunity with healthy unit economics and a large, fragmented addressable market. We are pleased to partner with Aye Finance on this next leg of growth as they bring credit to India’s under-served MSMEs via a thoughtful and risk adjusted cluster-based approach.” said Navroz D. Udwadia, Co-Founder of Falcon Edge.

“Since our investment eight months ago, Aye has almost doubled its book and proven its ability to scale branches profitably. We are excited to continue to support the company to help them achieve their goal of extending credit to microenterprises.” said Kaushik Anand, Head of India Investments at Capital.

DailyHunt raises $6 Million from Goldman Sachs as a part of Series E round

Bengaluru based news aggregator DailyHunt raised $6 million (INR 42 Crore) from Goldman Sachs investment partners.

Bengaluru based news aggregator “DailyHunt” run by Ver Se innovations Pvt. Ltd. raised $6 million (INR 42 Crore) from Goldman Sachs investment partners, which is a venture capital arm of New York-based investment bank Goldman Sach. The funding will be a part of Series E Round.

Earlier in 2015, it raised INR 250 Crore in Series C funding led by Falcon Edge Capital. In 2016, it raised INR 168 Crore in Series D funding round from Chinese content provider ByteDance.

DailyHunt was launched in 2009 by former Nokia Executive Umesh Kulkarni and Chandrashekhar Sohoni. It was formerly known as “NewsHunt” and was rebranded as “DailyHunt” in August 2015. It has 80 million users who spend 6 Billion minutes on the platform each month.

DailyHunt is available in 14 languages including English, Hindi, Marathi, Nepali, Gujarati. It provides original video content in Hindi and Telugu. It also provides free live TV stream service with more than 130 channels across 9 languages.

Major competitors of DailyHunt are UCNews, IShorts, NewsDog, Viralshorts. It’s latest offering is Newzly, a news excerpt mobile application that provides users with customized trending headlines in 9 languages.

Arshad Madhani’s 3 Tips to Talking To Investors

Global marketing expert and digital consultant Arshad Madhani has boiled down his investor relations policy into three simple rules.

Global marketing expert and digital consultant Arshad Madhani knows how to deal with clients from all cultures. Mr. Madhani’s experience helping entrepreneurs reach success in a competitive global marketplace has taught him many lessons. With more than a decade of work behind as a top-level consultant, and an educational background that consists of an MBA from Texas A & M University, Arshad Madhani has boiled down his investor relations policy into three simple rules.

(Learn more about Arshad in this recent interview)

Arshad’s 3 Tips for Talking to Investors

1. Never Over Promise and Under Deliver

Investors, like everyone else, want to hear the unvarnished truth about things. There’s no need to sugarcoat situations or dilemmas. Put yourself in the investor’s shoes: Wouldn’t you want to hear “straight facts”? Of course, and so would they. That’s why it’s important, to be honest and not clout the discussion with irrelevant points. Get down to the facts.

That basic groundwork of speaking the truth, leads to an essential component of investor relations: never promise more than you can deliver. Doing so only sets the investor, and you, up for disappointment. When you break a promise, your credibility is almost fully negated in the eyes of potential investor or investors. In fact, it’s better to under-promise whenever possible. That way, you’ll end up delivering more to the investor than they are expecting.

Over-shooting expectations is the ultimate goal. But as a first step, entrepreneurs should make certain that they never give in to the temptation to make colorful, optimistic promises that are likely to never materialize.

2. Ditch the Pitch

Try your best to not deliver an obvious “sales pitch.” That can cause people, especially potential investors, to turn a cold shoulder to you and perhaps even stop listening. Instead, take the time to slowly build a relationship with prospective investors. Listen to what their concerns are, why they are involved in the business world, and how they view the key issues of the day.

What’s the alternative? It’s simply to bury your pitch within a comprehensive discussion. An indirect approach, a subtler phrasing of your pitch, is more effective than a direct statement of “I need funding for project X because of X, Y, and Z.” That’s too cold and impersonal. People want to get to know you, and you to know them, before you deliver any kind of a pitch.

3. Don’t Take Criticism Personally

When it comes to investor discussions and negotiations, it is imperative to never take criticism personally. Such an attitude is poisonous to success and self-improvement.

Remember, it’s about business, success, and eventual profit. There’s no reason to view criticism as anything other than a path to improvement. If your technical skills are lacking, and someone points this out to you, take the chance to improve your skills. If a prospective investor offers up a critique of you or your company, try to figure out how the person received that impression of you. The point is: use criticisms as a tool for improvement. In the end, you’ll be better off for doing so.

Get More Insights from Arshad

It’s easy to connect directly with Arshad Madhani and learn more about his methods of doing business in an increasingly complex world. Simply visit his website or any of his social media channels below:

Facebook: https://www.facebook.com/arshadmadhani/
Twitter: https://twitter.com/ArshadMadhani

Oppo makes first India investment with funding for digital firm POPxo

Digital media startup POPxo has raised Rs 37 crore.

Digital media startup POPxo has raised Rs 37 crore in a round led by South Korean company Doosan Corporation’s investment arm, Neoplux, and Chinese mobile company Oppo, which has made its first investment in the Indian market. Existing investors, including Japanese firm GREE Ventures, IDG Ventures India, Kalaari Capital and Philippines-based Summit Media, also participated in the round. The funds raised will be used for product development and to increasingly tap into vernacular markets.

“Oppo set the price for our investment round and has been one of our biggest clients prior to becoming an investor. We did a lot of their digital launches in India and Neoplux brings in Korean beauty brands,” Priyanka Gill, founder of POPxo, told ET.

The company plans to focus on enabling content commerce, where users will be able to purchase products via the portal, which will add to their existing monetisation plans. At present, over 50% of the company’s audience comes from individuals who live outside of the top seven metros in India.

“POPxo has been a key partner in our digital strategy in India. We are confident that POPxo will become a significant player in the e-commerce segment with their ability to create content at scale and drive user engagement,” said James Zheng, Oppo India investment manager.