স্তার্তঅপ ফন্দিং

Funding refers to the money required to start and run a business. মসি পোত্থোক ফগৎহনবা, পোত্থোক শাবা, পাকথোক চাউথোকপা, য়োন্থোক য়োনশিন, ওফিসকী মফমশিং অমদি পোৎশিংগী পরিংগীদমক কম্পেনী অমদা শেলথুমগী ইনভেষ্টমেন্ট অমনি.. ষ্টার্ট ময়াম অমনা অহুমসুবা কাংবুদগী ফণ্ড লৌদনবা খল্লি অমদি মখোয়গী লিংখৎলিবা মপুখক্তনা শেল থাদৈ (শেন্দোল লৈতনবা অমদি ইকুইটি হন্থদনবা). অদুমকপু, ষ্টার্টঅপ অয়াম্বনা ফণ্ড খোমগৎলি মরুওইনা মখোয়না চাউখৎলকপা মরমনা অমদি মখোয়গী থবকশিং হেনগৎলকপনা . This page shall be your virtual guide to Startup funding. 

Why funding is required for startups

ষ্টার্টঅপ অমনা মরম অমগী, খরগী, নত্ত্রগা মখাগী হীরম পুম্নমকসিগীদমক ফণ্ডিং মথৌ তাই. It is important that an entrepreneur is clear about why they are raising funds. Founders should have a detailed financial and business plan before they approach investors.

Prototype Creation
Product Development
টিম ৱায়বা
থাদরিবা শেল্লেপ
Legal and Consulting Services
Raw Material and Equipment's
লাইসেন্স পীবা অমসুং সর্টিফিকেৎ পীবগী থবকশিং
লল্লোল-ইতিক অমসুং য়োন্থোক-য়োনশিন
Office Space and Admin Expenses

Types of startup funding

Stages of startups and source of funding

ষ্টার্টঅপশিংগী ফণ্ডিংগী হৌরকফম ময়াম অমা লৈ. অদুমওইনমক, ফণ্ডিংগী হৌফমদু ষ্টার্টঅপকী ওপরেসনশিংগী তাঙ্ককশিংদুগা চান্নগদবনি. চানবিদুনা খঙজিনবিয়ু মদুদিমপালগী সোর্সশিংদগী ফণ্ড খোম্বদি মতম চংবা থৌওংনি অমদি মদু ওন্থোকপদা 6 থাগী মথক্তা চংই.

Ideation

This is the stage where the entrepreneur has an idea and is working on bringing it to life. মসিগী তাঙ্ককসিদদি, মথৌ তারিবা ফণ্ডশিংগী শেনফমসে মহৌশানা পিকই. Additionally, at the initial stage in the startup lifecycle, there are very limited and mostly informal channels available for raising funds.

Pre-Seed Stage

Bootstrapping/Self-financing:

Bootstrapping a startup means growing the business with little or no venture capital or outside investment. It means relying on your savings and revenue to operate and expand. This is the first recourse for most entrepreneurs, as there is no pressure to pay back the funds or dilute control of your startup.

Friends and Family

This is also a commonly utilised channel of funding by entrepreneurs still in the early stages. The major benefit of this source of investment is that there is an inherent level of trust between the entrepreneurs and the investors.

Business Plan/Pitching Events

This is the prize money/grants/financial benefits that are provided by institutes or organisations that conduct business plan competitions and challenges. Even though the quantum of money is not generally large, it is usually enough at the idea stage. What makes the difference at these events is having a good business plan.

Validation

At this stage, a startup has a prototype ready and needs to validate the potential demand of the startup’s product or service. মসিবু কৌই ‘প্রুফ ওফ কনসেফ্ট অমা শিল্লাংবা(PoC)’, মসিগী মতুংদগী অচৌবা মার্কেট হৌগৎনবগী ৱাফম লাকই.

Seed Stage

A startup will need to conduct field trials, test the product on a few potential customers, onboard mentors, and build a formal team for which it can explore the following funding sources:

ইনকুবেতরশীং:

Incubators are organisations set up with the specific goal of assisting entrepreneurs with building and launching their startups. Not only do incubators offer a lot of value-added services (office space, utilities, admin and legal assistance, etc.), they often also make grants/debt/equity investments. You can refer to the list of incubators and here.

Government Loan Schemes

The government has initiated a few loan schemes to provide collateral-free debt to aspiring entrepreneurs and help them gain access to low-cost capital, such as the Startup India Seed Fund Scheme and SIDBI Fund of Funds. A list of government schemes can be found here.

এঞ্জেল ইনভেস্টর

Angel investors are individuals who invest their money into high-potential startups in return for equity. Reach out to angel networks such as Indian Angel Network, Mumbai Angels, Lead Angels, Chennai Angels, etc., or relevant industrialists for this. You can connect with investors through the Network Page.

Crowdfunding

Crowdfunding refers to raising money from a large number of people who each contribute a relatively small amount. This is typically done via online crowdfunding platforms.

আর্লি ট্রাক্শন

At the Early Traction stage startup’s products or services have been launched in the market. কী পর্ফোরমেন্স ইণ্ডিকেটরশিং হায়বদি কষ্টমর বেজ, রেভিন্যু, এপ দাউণ্ডলোদ তৌবা অসিনচিংবসি মসিগী তাঙ্ককসিদা য়াম্নমক মরু ওই.

Series A Stage

Funds are raised at this stage to further grow the user base, product offerings, expand to new geographies, etc. Common funding sources utilized by startups in this stage are:

Venture Capital Funds

Venture capital (VC) funds are professionally managed investment funds that invest exclusively in high-growth startups. Each VC fund has its investment thesis – preferred sectors, stage of the startup, and funding amount – which should align with your startup. VCs take startup equity in return for their investments and actively engage in the mentorship of their investee startups.

Banks/Non-Banking Financial Companies (NBFCs)

Formal debt can be raised from banks and NBFCs at this stage as the startup can show market traction and revenue to validate its ability to finance interest payment obligations. This is especially applicable for working capital. Some entrepreneurs might prefer debt over equity as debt funding does not dilute equity stake.

Venture Debt Funds

Venture Debt funds are private investment funds that invest money in startups primarily in the form of debt. Debt funds typically invest along with an angel or VC round.

Scaling

At this stage, the startup is experiencing a fast rate of market growth and increasing revenues.

Series B, C, D and E

Common funding sources utilised by startups in this stage are:

Venture Capital Funds

VC funds with larger ticket sizes in their investment thesis provide funding for late-stage startups. It is recommended to approach these funds only after the startup has generated significant market traction. A pool of VCs may come together and fund a startup as well.

Private Equity/Investment Firms

Private equity/Investment firms generally do not fund startups however, lately some private equity and investment firms have been providing funds for fast-growing late-stage startups who have maintained a consistent growth record.

Exit Options

Mergers & Acquisitions

The investor may decide to sell the portfolio company to another company in the market. In essence, it entails one company combining with another, either by acquiring it (or part of it) or by being acquired (in whole or in part).

Initial Public Offering (IPO)

IPO refers to the event where a startup lists on the stock market for the first time. পব্লিক লিষ্টিং তৌবগী থৌওংসি পাকথোক চাউথোরকপা অমদি ৱায়েল কাংলোনগী চৎন পথাপকা লোয়ননা পাংথোকপনা, মসি মহৌশানা ষ্টার্টঅপশিংনা শেন্দোংগী পুক্নিং হুনিংঙাই ওইবা ট্রেক্ট রিকোর্ড লৈবা অমদি লেপ্পা লৈতবা খোংজেলদা চাউখৎলক্লিবশিংদুগা লোয়ননা পায়খৎলি.

Selling Shares

Investors may sell their equity or shares to other venture capital or private equity firms.

Buybacks

Founders of the startup may also buy back their shares from the fund/investors if they have liquid assets to make the purchase and wish to regain control of their company.

Distressed Sale

Under financially stressed times for a startup company, the investors may decide to sell the business to another company or financial institution.

Steps to Startup Fund Raising

ইন্টরপ্রিন্যুরশিংনা হোৎননিংবা ৱাখল অমদি খাংবা কনবগী থৌনা লৈগদবনি মদু মায় পাকপা ফণ্ড-খোম্বগী মতমদুনা মতৌ তাই. ফণ্ড-খোম্বগী থৌওংসি মখাগী খোংথাংশিং অসিদা কায়থবা য়াই:

ফণ্ডিংসি করিগীদমক্তা তঙাইফদ্রিবনো অমদি চপ চানা খোমগৎকদবা শেনফমদু কয়ানো হায়বদু ষ্টার্টঅপনা পুথোকপা মথৌ তাই . The startup should develop a milestone-based plan with clear timelines regarding what the startup wishes to do in the next 2, 4, and 10 years. A financial forecast is a carefully constructed projection of company development over a given time period, taking into consideration projected sales data as well as market and economic indicators. The cost of Production, Prototype Development, Research, Manufacturing, etc. should be well planned. Based on this, the startup can decide what the next round of investment will be for.

While it is important to identify the requirement of funding, it is also equally important to understand if the startup is ready to raise funds. ইনভেষ্টর অমা হেক্তনা নহাকপু লুম্না লৌগনি করিগুম্বা নহাক্কী রেভিন্যু প্রোজেক্সনশিং অমদি মখোয়দা শিংগদবশিংদু নিংথিনা খংহল্লবদি. Investors are generally looking for the following in potential investor startups:

  • রিভিন্যু ৱাংখৎপা অমসুং মার্কেটকী ফিভম
  • Favorable return on investment
  • মহুৎ তাবগী মতম অমদি শেন্দোং লৈবগী মতৌ
  • ষ্টার্টঅপকী তোপ তোপ্পা মতৌ অমদি মাংজিল থারিবা
  • ইন্টরপ্রিন্যুরশিংগী অশানবা মীৎয়েং অমদি তুংগী থৌরাংশিং
  • থাজনিংঙাই ওইবা, শুমহৎনিংঙাই ওইবা, হৈথোই-শিংথোইবা খোংবু

A pitchdeck is a detailed presentation about the startup outlining all the important aspects of the startup. Creating an investor pitch is all about telling a good story. Your pitch isn’t a series of individual slides but should flow like a story connecting each element to the other. Here is what you need to include in your pitchdeck

Every Venture Capitalist Firm has an Investment Thesis which is a strategy that the venture capitalist fund follows. The Investment Thesis identifies the stage, geography, focus of investments, and differentiation of the firm. You can gauge the Investment Thesis of the company by thoroughly going through the company website, brochures, and fund description. To target the right set of investors, it is necessary to research Investment Thesis, their past investments in the market, and speak with entrepreneurs who have successfully raised equity funding. মসিগী এক্সরসাইসসিনা অদোমবু তেংবাংলগনি:

  • খিং খিং লাউবা ইনভেষ্টরশিং খংদোকউ
  • মখোয়গী সেক্টর প্রিফরেন্সশিং
  • লমদম ওইবা লৈফম
  • Average ticket size of funding 
  • ইনভেষ্টি ষ্টার্টঅপশিংদা য়ানবা অমদি মেন্টরশিপ পীবগী থাক

Pitching events offer a good opportunity to interact with potential investors in person. পীটচ দেকসি এঞ্জেল নেটৱর্ক অমদি ভিসিশিংদা মখোয়গী কন্টেক্ট ইমেইলশিংদা থাবা য়াই.

 

Angel networks and VCs conduct thorough due diligence of the startup before finalising any equity deal. মখোয়না ষ্টার্টঅপকী হৌখ্রবা শেলথুমগী ৱারেপশিং অমদি টিমগী শক্তাকশিং লোয়ন লোয়না হৌরকফমশিং য়েংই.. This is done to ensure that the startup’s claims regarding the growth and market numbers can be verified, as well as to ensure that the investor can identify any objectionable activities beforehand. If the due diligence is a success, the funding is finalised and completed on mutually agreeable terms.

টার্ম শিট অসি ‘নন বাইন্ডিং’ ওইবা প্রপোজিশন ময়ামগি লিস্ট, ডিল তৌনবা কুইদ্রিবা মতমদা ভেনচর ফার্ম না পিবা. It summarises the major points of engagement in the deal between the investing firm/investor and the startup. A term sheet for a venture capital transaction in India typically consists of four structural provisions: valuation, investment structure, management structure, and finally changes to share capital.

  • Valuation

Startup valuation is the total worth of the company as estimated by a professional valuer. There are various methods of valuing a startup company, such as the Cost to Duplicate approach,the Market Multiple approach, discounted cash flow (DCF) analysis, and the valuation-by-stage approach. Investors choose the relevant approach based on the stage of investment and market maturity of the startup.

  • Investment Structure

It defines the mode of the venture capital investment in the startup, whether it is through equity, debt, or a combination of both.

  • Management Structure

The term sheet lays down the management structure of the company, which includes a list for the board of directors and prescribed appointment and removal procedures.

  • Changes to share capital

All investors in startups have their investment timelines, and accordingly they seek flexibility while analysing exit options through subsequent rounds of funding. The term sheet addresses the stakeholders’ rights and obligations for subsequent changes in the company’s share capital.

What do investors look for in startups? 

করিগীদমক্তা ইনভেষ্টরশিংনা ষ্টার্টঅপশিংদা ইনভেষ্ট তৌরিবনো? 

Investors essentially buy a piece of the company with their investment. They are putting down capital in exchange for equity: a portion of ownership in the startup and rights to its potential future profits. Investors form a partnership with the startups they choose to invest in; if the company turns a profit, investors make returns proportionate to their amount of equity in the startup; if the startup fails, the investors lose the money they’ve invested.

Investors realise their return on investment from startups through various means of exit. খ্বাইদগী হেন্না ফবদি, ভিসি ফার্ম অমসুং ইন্ত্রপ্রিনর অদুনা ইনভেষ্টমেন্ট নেগোসিএসনশিংগী হৌরকপদা, তোঙান-তোঙানবা এক্সিট ওপসনশিং অদু খন্ন-নৈনগদবনিotiations. A well-performing, high-growth startup that also has excellent management and organisational processes is more likely to be exit-ready earlier than other startups. ভেঞ্চর কেপিটেল অমসুং প্রাইভেট ইক্বুইটি ফন্দসনা ফন্দগী মপুন্সি লোইদ্রিঙৈগী মমাংদা মখোয়গী ইনভেষ্টমেন্ট পুম্নমক্তগী এক্সিট তৌহৌগদবনি.

Startup India Funding Support

SIDBI Fund of Funds Scheme

The Government of India formed a fund of INR 10,000 crore to increase capital availability as well as to catalyse private investments and thereby accelerate the growth of the Indian startup ecosystem. The Fund was set up as a Fund of Funds for Startups (FFS), approved by the Cabinet, and established by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2016. FFS does not invest in startups directly but provides capital to SEBI-registered Alternate Investment Funds (AIFs), known as daughter funds, who in turn invest money in high-potential Indian startups. SIDBI has been given the mandate of managing the FFS through the selection of daughter funds and overseeing the disbursal of committed capital. The fund of funds makes downstream investments in venture capital and alternative investment funds that in turn invest in startups. The fund has been formed in a way that creates a catalysing effect. Funding is provided to startups across different life cycles.

As of 31st January 2024, SIDBI has committed INR 10,229 crores to 129 AIFs; further INR 4,552 crores have been distributed to 92 AIFs. A total of INR 17,452 crores has been injected to boost 939 startups.



ষ্টার্টঅপ ইন্দিয়া সিদ ফন্দ স্কিম

The Department for Promotion of Industry and Internal Trade (DPIIT) has created the Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 CR, which aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The scheme will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years. The Seed Fund will be disbursed to eligible startups through eligible incubators across India.



Startup India Investor Connect

Startup India Investor Connect was launched in the sixth meeting of the National Startup Advisory Council (NSAC), convened on 11th March 2023, to serve as a dedicated platform that connects startups to investors, promotes entrepreneurship, and accelerates engagements across diverse sectors, functions, stages, geographies, and backgrounds, which is also the need of the ecosystem. 

Key Features of the Portal

  1. Investment opportunities: The platform brings together startups and investors, enabling startups to gain visibility in front of investors, pitch their ideas, and get investment opportunities for themselves.
  2. Algorithm Based Matchmaking: The platform uses Algorithm based Matchmaking to connect startups and investors based on their respective requirements.
  3. Enable Access in Emerging Cities: The platform enables connections between investors and startups in emerging cities.
  4. Virtual Marketplace Creation: The platform has created a virtual marketplace for investors to find innovative startups suitable for their needs.

Credit Guarantee Scheme for Startups


The Government of India established the Credit Guarantee Scheme for Startups with a fixed corpus for providing credit guarantees to loans extended to DPIIT-recognised startups by scheduled commercial banks, non-banking financial companies (NBFCs), and venture debt funds (VDFs) under SEBI-registered alternative investment funds.

CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers, viz., Startups, as defined in the Gazette Notification issued by DPIIT and amended from time to time. The credit guarantee coverage under the scheme would be transaction-based and umbrella-based. The exposure to individual cases would be capped at INR 10 crore per case or the actual outstanding credit amount, whichever is less.

As of 3rd November 2023, INR 132.13 crore worth of guarantees was issued to 46 স্তার্তঅপশীং. Out of this, INR 11.3 crore worth of guarantees have been issued to 7 women-led startups. The number of employees employed by these startups is 6073. The startups covered range from a variety of industries, including consumer services, capital goods, agriculture & allied activities, services, information technology, metals and mining, textiles, and the utilities industry, and are spread across states like Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu, West Bengal, and Uttar Pradesh.