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What are the Fund Raising challenges and solutions for Start-ups?

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  • #16
    Booking of tickets for NGO children

    As per the project given by dean sir we have to book discount tickets for the NGO’s children. I had book the coupon from “Nearbuy” app in which we always get cashback for booking any tickets for hotels, breakfast, saloon, etc. I have book 5 coupon which is of Rs. 500 each and in this coupon I get cashback of 40% of Bahubali 2 movie in Inox cinema hall. After getting coupon in our mail I went to Inox for booking the seats and get the reimbursement of coupon into tickets. After getting cashback we again book the tickets from the cashbacks.
    From this project I learn that how to use Nearbuy app and it usefulness. We came to know that from this app we cannot transfer money to other app. We also learn the marketing strategies of near buy app.

    Comment


    • #17

      Finding Energy in Rejection:
      Even though the initially there may be rejection by investors. There may be words like, “NO", "absolutely no" on first round funding. It may be a moment of doubt and introspection. But if there is confidence in the idea, we shouldn't lose our start up hope on the first funding. Refresh your mind and again go for the startup idea.

      Unrealistic Expectations
      The young Start-ups face challenges when they set ‘unrealistic expectations’ following a booming success. Therefore to succeed in a competitive business world, they need to have high but controlled expectations, keeping view of the resources available, growth potential, and other market factors.

      Globally Scalable:
      Investors look into the aspect whether the startup is globally scalable in the market. Whether, the startup is applicable in every part of the world or not. If it is applicable in every part of the world. it becomes easier to persuade the investor.

      Technical terms
      Many entrepreneurs don't know the meaning of bootstrapping, they don't know what is a pitch deck, they don't know what is the difference between a VC and an Angel Investor.

      SOLUTIONS:
      1) Bootstrapping your new company:

      Self-subsidizing, otherwise called bootstrapping, is a viable method for start-up financing, extraordinarily when you are quite recently beginning your business.

      2) Crowd subsidizing As a Funding Option:

      Swarm subsidizing is one of the more up to date methods for financing a start-up that has been picking up part of fame recently. It resembles taking an advance, pre-request, commitment or ventures from more than one individual in the meantime.

      3) Get Angel Investment In Your Start-up:

      Heavenly attendant financial specialists are people with surplus money and a distinct fascination to put resources into forthcoming new businesses. They can likewise offer coaching or guidance nearby capital.

      4) Get Venture Capital For Your Business:

      This is the place you make the enormous wagers. Investments are professionally overseen stores who put resources into organizations that have tremendous potential.

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      • #18
        Booking of tickets for NGO children
        As per the project given by dean sir we have to book discount tickets for the NGO’s children. I had book the coupon from “Nearbuy” app in which we always get cashback for booking any tickets for hotels, breakfast, saloon, etc. I have book 5 coupon which is of Rs. 500 each and in this coupon I get cashback of 40% of Bahubali 2 movie in Inox cinema hall. After getting coupon in our mail I went to Inox for booking the seats and get the reimbursement of coupon into tickets. After getting cashback we again book the tickets from the cashbacks.
        From this project I learn that how to use Nearbuy app and it usefulness. We came to know that from this app we cannot transfer money to other app. We also learn the marketing strategies of near buy app.

        Comment


        • #19
          CHALLENGES FACED BY A STARTUP WHILE RAISING SERIES.

          Efficient Capital Burn: Many a time, startups face difficulty in having a clear vision of deploying the raised capital. Some may give more weightage to team, some to the traction numbers, some to the market sentiments, while others may look for global expansion etc. Hence, prioritizing comes up as a major dilemma at this level.

          Subsidizing: Start-ups fundamentally don't have any desire to depend on obligation financing because of high loan fee. They like to contribute their thoughts front of investors and other money related financial specialists to get subsidizing.

          Inappropriate Market Research: Before beginning endeavor, it is constantly prudent to do a careful statistical surveying to run a Startup effectively. Research is the key component of achievement for any Startup.

          Market Validation: due to un justified over confidence in the venture, the entrepreneurs usually ignore the process of market validation of the idea by testing which generated problem on the part investors due to the higher level of risk involved in an untested idea which might turn out to be unfeasible.

          SOLUTIONS TO SEEK PROPER FUNDING

          PIPELINE: Pipeline is the term often used to refer to the amount that a company expects to receive in the coming months or year. It is used when companies have a long time between the placement of orders and when the goods or services actually are delivered.

          MARKET VALIDATION: Market validation refers to a series of interviews of people in target market. The interviews are used to check a product concept against a potential target market that will help the start-ups to come up with valid and real ideas.

          MENTORSHIP: The entire journey of entrepreneurship should be guided by someone with knowledge, expertise and experience. proper mentorship aids in choosing the right source of funding from bootstrapping to angel investors to venture capitalists. Mentors can show a better path because the above mentioned criteria as can be better judged by someone with ample degree of experience.

          Comment


          • #20
            In the session we go through different parameters according to which a investor judges a entrepreneur
            • Uniqueness
            • Globally scale able.
            • Pipeline is the term used to have the fund raise in the upcoming years of starting the business. It includes the persons interested to grow the business.
            • The usefulness and quality of the business plan concept (e.g., product, technology, service).
            • The usefulness and quality of the business model..
            • The financial and/or social return of the proposed venture.
            • Benchmarking performance milestones expressed in the business plan.
            • Contingency planning and risk assessment – include plan for mitigating risk factors.
            • The capacity and strength of the management team (experience and expertise).
            • The marketability of the proposed venture (does demand of concept exist).

            Comment


            • #21
              FUND RAISING CHALLENGES AND SOLUTIONS FOR START-UPS

              As an entrepreneur, one faces many challenges to get the proper funding. There is a different in what the investors really want the start up to deliver the expectation of start up.
              . LACK OF INFORMATION:
              Most of the entrepreneurs are unknown to access any adviser to get the help related to the fund raising pitch deck and how to get the attention of the investors towards the idea. They don't know whom to approach for help regarding the fund raise. This is one of the greatest challenge for an entrepreneur.
              HIGHER EXPECTATIONS:
              Entrepreneurs are having the dream that their product would be making billions and trillions at once after starting the business. But they are unaware about the investors' requirements and have high confidence over their way of pitch deck.
              SOLUTIONS TO SEEK PROPER FUNDING

              PIPELINE: Pipeline is the term often used to refer to the amount that a company expects to receive in the coming months or year. It is used when companies have a long time between the placement of orders and when the goods or services actually are delivered.

              TRACTION: Business traction means the growth path to be followed by a start-up company and the manner in which profitability is attained and retained in the long run. Traction is usually measured by means of customer response and feedback and assists in magnifying investors trust in the project as the project has been tested in the real market amidst the prospective customers.

              MENTORSHIP: the entire journey of entrepreneurship should be guided by someone with knowledge, expertise and experience. proper mentorship aids in choosing the right source of funding from bootstrapping to angel investors to venture capitalists. Mentors can show a better path because the above mentioned criteria as can be better judged by someone with ample degree of experience.

              Comment


              • #22
                Problems for start ups-
                1. Founders assuming they are the target customers-
                Very often we have seen that founders think they are the target customers and try to design products according to them but one must think from the customers point of view.
                1. Not specifying our target market
                2. Floating the idea before it is ready
                Considerations for start up-
                1. Roadmap-
                Every start up must make a roadmap regarding the activities that they want to perform as it helps in making planned decisions.
                1. Make a fundable Business-
                Business model for the company should be such through which one can get funding it should not be any casual idea having no or less potential.
                1. USP-
                A business must have it’s own USP in this competitive environment one should make their products heterogeneous and must have a unique preposition.
                1. Globally scalable
                2. Considerations of challenges


                Solutions
                1. Pipeline is the term often used to refer to the amount that a company expects to receive in the coming months or year. It is used when companies have a long time between the placement of orders and when the goods or services actually are delivered.
                1. Market traction- Business traction refers to the progress of a start-up company and the momentum it gains as the business grows. It helps a company understand where it stands in an industry and where it would like to be.
                1. Mentorship- A mentor for start is very important as they guide us through things which we can’t see or don’t want to see when starting a business. They help us to build and sustain the company with the experience that they possess.

                Comment


                • #23
                  0n 26th april 2017 we went to primary school of trivenipura ,community centre to show the movie bahubali to the primarystudents of 1 standard to 5 standard.as soon as we arrived over there students were shouting bahubali and NAMO NAMA and they were full of curiosity and during mvovie we have given the refershment too.
                  now i will talk about learning and experience.
                  controlling - I learned controlling skills during my project because there were some time when students were out of control and shouting so i handled the students
                  value of time-i learned about value of time during the project because we have been told to be in time at school .
                  handling-i learned about how to handle the crowd
                  team player -i also learned about how to contribute in team player and be effecient too in the team

                  overall i was nice experience and nice learning platform and we contributed a lot.....

                  Comment


                  • #24
                    STARTUP CHLLANGES AND FUND RAISING
                    Fundraising: Love it or hate it, unless you are independently wealthy, it's key to the success of your new startup. When done right, it can lead to lucrative partnerships with angel investors and venture capitalists. Luckily, in my experience, the process of fundraising is always similar. The following steps were most crucial in raising each of my initial angel rounds.
                    1. Open your own wallet first. Tap into savings, home equity, or retirement accounts. It's risky, but don't expect others to invest in your startup if you haven't put some of your own money in. Knowledgeable investors want to see founders show confidence with cash. They favor entrepreneurs with more than "just" sweat equity in the game.
                    2. Sign up strategic partners early on. There's nothing sweeter than finding a supplier, distributor, or especially a customer who stands to gain so much from your solution that they are willing and able to help foot the bill.
                    3. Bootstrap. Paying as you go by earning revenue from early adopters and managing every dime like it was a dollar is the most cost-effective way to stretch your company's resources-financial and otherwise.
                    Nothing is scarcer than cash (except maybe sleep) when you're starting out. The more you can bootstrap in the beginning to achieve good market validation, the easier you are going to find your path to raising capital

                    Comment


                    • #25
                      Fund raising challenges and solutions for Startups

                      These are the valuable insights given by Mr. Mandar Gadkari(Head of Cross Border Angels)

                      If a startup is looking for funding they will be facing the following challenges:-

                      1. Startups should have a operational and financial roadmap of 3-5 years.

                      2. The business model should be a fundable model i.e. it should be consistently expandable rather than a lifestyle business model.

                      3. Startup should have atleast one USP which should differentiate them from other startups or corporates in the same industry.

                      4. Pricing of product and consistency in customer satisfaction are key factors to startup's success.

                      5. Most importantly they should be globally scalable.

                      6. Complete market analysis is mandatory to survive in the market for a longer period of time, most importantly potential of offline competition.

                      A startup should adopt the given techniques to douse the challenges faced by them:-

                      1. They should have atleast a forecast of cash flow and operations for 5 years.

                      2. They should plan for evolution of prices & sales roadmap.

                      3. They should have a proper expansion map.

                      4. They should calculate risk adjusted valuation and avoid overvaluation.

                      5. They should identify best available routes and choose the best among them.

                      6. Last but not the least they should have plans to enter into new segments and markets, product development and ROI for investors.

                      Comment


                      • #26
                        Hurdles for Entrepreneurs
                        Many of the entrepreneurs are so passionate about their idea and look in their own shoes. It’s a major drawback of the entrepreneur. The minor mistakes can lead to a disaster. Here are the some of the drawbacks and solutions to overcome
                        Main reasons for failure
                        1. Lack of market research: the idea might be innovative but the acceptance is to be received from the consumer end. If the research says its negative must be reframed by the innovative and customer need. So the right market research is required.
                        2. Lack of proper knowledge: most of the entrepreneurs are failed due to lack of knowledge, and not knowing the present trends and where to seek help and where to make them pitched by a mentor.
                        3. Lack of mentor: The entrepreneur has to have a mentor to cheek his idea, innovation and daily activities of the firm. It's not a burden it’s a privilege and makes to push individually and organizationally.
                        Solutions and some tips
                        PIPELINE: Pipeline is the term often used to refer to the amount that a company expects to receive in the coming months or year. It is used when companies have a long time between the placement of orders and when the goods or services actually are delivered.

                        TRACTION: Business traction means the growth path to be followed by a start-up company and the manner in which profitability is attained and retained in the long run. Traction is usually measured by means of customer response and feedback and assists in magnifying investors trust in the project as the project has been tested in the real market amidst the prospective customers.

                        Exit from the startup:
                        Investors like to exit quickly from the startup. So investments, where the return is fast, is preferred by investors. So startup should focus on fast returns of investments in the market.

                        Comment


                        • #27
                          CHALLENGES FACED BY ENTREPRENEURS:-
                          1) Business idea issues
                          Quite often, first time entrepreneurs also make the mistake of trying to go too big with the idea right away. Some of the common business idea mistakes are to try to open more than one business at once, or try to open a business that would require millions of dollars when they only have access to a few thousand dollars with which they can realistically start. It is good to have ambition, but some small wins are needed in order to build on them and go bigger.
                          2) Lack of finances
                          Nearly every entrepreneur has faced this issue at some point. While some businesses can be bootstrapped, but most businesses will need a cash of some sort to help it get the resources it needs. There are different ways to get finance like:-
                          • Little or no research about the investor: I've seen most of the entrepreneurs apply with investors without even knowing about the investor’s investment objective, corpus, previous investments and the focus.
                          • Over confidence: I have experienced this many times, entrepreneurs think that their website is a million dollar money making machine. This is because they have never discussed about it with an expert who may validate the idea and curate the product/process.
                          • Technical terms: Many entrepreneurs don't know the meaning of bootstrapping, they don't know what a pitch deck is, they don't know what is the difference between a VC and an Angel Investor.


                          SOLUTIONS:-
                          It is very necessary for an entrepreneur to do a proper research and development before the starting any business, and also a proper business model should be made in order to remove threat. Also out of below mentioned ways of getting finance, an entrepreneur should go for the most suitable one as per there situation. Financing is the very imp. Decision and it should be done properly
                          1) Bootstrapping your start-up business:
                          Self-funding, also known as bootstrapping, is an effective way of start-up financing, specially when you are just starting your business.
                          2) Crowd funding As a Funding Option:
                          Crowd funding is one of the newer ways of funding a start-up that has been gaining lot of popularity lately. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.
                          3) Get Angel Investment In Your Start-up:
                          Angel investors are individuals with surplus cash and a keen interest to invest in upcoming start-ups. They can also offer mentoring or advice alongside capital.
                          4) Get Venture Capital For Your Business:
                          This is where you make the big bets. Venture capitals are professionally managed funds who invest in companies that have huge potential.

                          Comment


                          • #28
                            What are the challenges faced by entrepreneur in raising funds and solutions
                            for start-ups

                            Challenges


                            Less or no knowledge about the criteria of investor to select the start-up: most of the entrepreneurs apply with investors without even knowing about the investor’s investment objective

                            Source of Finance: Start-ups basically don’t want to depend upon debt financing due to high risk and interest rate. They prefer to pitch their ideas in front of venture capitalists and other financial investors to get funding.

                            Over and Unrealistic Expectations
                            The young Start-ups generally have over and unrealistic expectation. They don’t think according to inverters prospects and face challenges when they set ‘unrealistic expectations. They are require to keep view of the resources available, growth potential, and other market factors.
                            Over confidence: start-up are require to think according to investor. They don’t think according to inverters prospects .This is because they have never discussed about it with an expert

                            Technical terms: Many entrepreneurs don't know the meaning of bootstrapping, they don't know what is a pitch deck, they don't know what is the difference between a VC and an Angel Investor.


                            Solutions
                            1. Bootstrapping your start-up business:
                            Self-funding, also known as bootstrapping, is an effective way of start-up financing, especially when you are just starting your business.


                            2. Pipeline

                            Pipeline is the term often used to refer to the amount that a company expects to receive in the coming months or year.

                            3. Market validation

                            Market validation refers to a series of interviews of people in target market.
                            4. Get Angel Investment In Your Start-up:

                            Angel investors are individuals with surplus cash and a keen interest to invest in upcoming start-ups. They can also offer mentoring or advice alongside capital.

                            5. Get Venture Capital For Your Business:

                            This is where you make the big bets. Venture capitals are professionally managed funds who invest in companies that have huge potential.

                            Comment


                            • #29
                              Fund raising challenges for start-ups

                              • Asking early: This is a most common mistake, many entrepreneurs connect with the potential investors at the idea stage. There is no value of an idea until it is executed, or it has to be a great invention/innovation.
                              • Begging for funds: Entrepreneurs think that investors risk their money on the ideas of unknown random people. Nobody will fund a startup or an idea that does not have good potential of providing returns.
                              • Approaching the wrong people: Not everything that glitters is gold, select whom to approach by performing a proper scan of the profiles. Don't get trapped.
                              • Lack of Pitch deck: Many entrepreneurs send just a presentation, they don't understand what is a pitch deck. So, please prepare a pitch deck before you approach an investor.
                              • Unscheduled calls: Don't call any investor without booking a call. Unscheduled calls disturb the entire work schedule.
                              • Idea validation: Get the idea validated before you approach any investor. This will reduce the chances of rejection. Get the idea validated even if your startup is in revenue stage.
                              Solution to seek proper funding

                              • Pipeline is the term used to have the fund raise in the upcoming years of starting the business. It includes the persons interested to grow the business.
                              • Market validation refers to a series of interviews of people in target market. The interviews are used to check a product concept against a potential target market that will help the start-ups to come up with valid and real ideas.

                              Comment


                              • #30
                                FUND RAISING CHALLENGES FOR STARTUPS

                                Startup is like a latest trend in fashion now, more and more people are coming up with startups, almost everywhere in India. Most of the startup Entrepreneurs are building their startups just for raising funds. However, start-ups should be built to solve problems, create value and generate profits.

                                Problems: -
                                • Over confidence: We have experienced this many times, entrepreneurs think that their website is a million dollar money making machine. This is because they have never discussed about it with an expert who may validate the idea and curate the product/process.
                                • Technical terms: Many entrepreneurs don't know what is the meaning of bootstrapping, they don't know what is a pitch deck, they don't know what is the difference between a VC and an angel investor.
                                Solutions: -
                                • Market validation: -Market validation refers to a series of interviews of people in target market. The interviews are used to check a product concept against a potential target market that will help the start-ups to come up with valid and real ideas.
                                • PIPELINE: Pipeline is the term used to have the fund raise in the upcoming years of starting the business. It includes the persons interested to grow the business.

                                Comment

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