A startup can be both exciting and hair-raising. On one hand, the idea of starting your own business fills you with joy. On the other hand, it makes you nervous because there are plenty of things to do – ranging from renting a space to purchasing equipment and hiring people.
However, the path to a startup begins with fundraising. How to raise funds for a startup in India?
Although the process of raising capital seems simple and straightforward, it is quite the opposite, especially when you want to raise funds with no product.
When you require outside capital with no product, you need a strategy to convince your potential investors. Here is how you can get an investor for startup business in India:
a). Create a Prototype
You may have a great business idea, but it doesn’t create your potential investor’s interest until you have something tangible to present.
When you need funding, providing your potential investors with the final product isn’t a practical solution. However, you can create a prototype and share it with your investors.
A prototype tells what your final product will look like. When people have an idea of what the final outcome will be, you have high chances of getting funds.
b). Reach Venture Capitalists
There are many like you looking for startup funding in India. Similarly, there are venture capitalists who want to partner with entrepreneurs who have innovative products and creative ideas that hold potential to succeed. You need to do your research and find those venture capitalists.
Once you reach them, share your project idea and its prototype. If it strikes them, they may think of funding your startup.
c). Form a Team
You must have heard the famous phrase, which says, “we don’t bet on horses, we bet on jockeys”. There are investors who value people more than a materialistic item. Before you reach out to startup investors in India, form a team that ecompasses of experienced, skilled professionals. Your team must have people who believe in your product and the idea behind it.
Have you heard of platforms like Kickstarter that allow people to share their product and convince people to fund a project. However, these types of projects are for small projects. If you are thinking of startup funding in India 2021, you also require angel investors or venture capitalists who can fund a product with a long-term plan.
e). Share Customer Experience
Getting more people for your product becomes a little easier when you have found a way to attract your potential customers. Let’s consider the example of Netflix. The streaming platform provides new customers with a free trial of one-month. It helped Netflix to generate trust among its viewers. When people realized that the platform is worth their money, they began buying its paid plans.
You can use similar methods to grab the attention of potential customers. For example, you can provide free products or services to your first customers. After that, their experience can be shared with others to give them a reason to invest in your products.
In the End
How to raise funding for a startup in India? Getting the question’s answer isn’t going to be easy, but you need to get up and make an effort. Some of them will fail, but you must explore more options. Try multiple of them and keep looking for potential investors to turn your idea into a product. All the best!