Seed Funding for startups plays an important role in the long-term success of the startup. The biggest challenge lies in the fact that these startups are at the idea stage and they need a whole lot of courage to convince the investors of the expected high return on investment.
The investors are a group of individuals, distinguished angel investors, serial entrepreneurs, and former CEOs with a track record of bringing businesses public. Seed funding is the most crucial stage for all early-stage startups. The timing and manner of seed funding ensure the longevity of your business venture.
We can sum up the solution to your question of ‘how to raise seed capital’ as an under-
- The initial investment by investors to help you grow through Seed Funding For Startups.
- Involvement of investors in the form of more than a financer.
- Enhanced business plan, more avenues of growth, and better cost and revenue projections.
- Obtain the quicker route to get the business venture on track.
The continuously expanding Indian startup ecosystem has attracted the attention of a lot of investors. They look out for new businesses and innovations with optimum resources in hand.
Best time to Raise Seed Capital
Seed funding has now become the default option for your doubt of ‘how to raise seed capital for new business ideas. You can look out for Seed Funding For Startups as soon as the idea or business model is ready to make a pitch to the right investors.
The business idea requires a meticulous business plan, optimized market research leading to a better roadmap for the development of the product. Before pitching for investment, the product must be market-ready or in the prototyping stage. The startup owners should be accountable for the proof of concept to display the future of your business idea.
How to attract investors
Getting the right investment is not an easy task for start-ups. A well-planned approach and systemic future layout to grab the best investment from the potential investors give you the solution to your quest of ‘how to raise seed capital ‘ and help you attain the desired growth in your business expedition.
A right pitch to the right investor or a group of investors helps you get Seed Funding For Startups. You have to get yourself in a position to gain the attention of the investors. You can grab a good deal through the following methods-
Be investment ready
The specified projections must be ready at hand before diving into the seed funding process. You have to be ready with your funding requirement and your further plans to allocate the resources.
The investors demand a detailed cost projection to test your skills of skipping any unfair deal. The investor round is a test of your credibility and a deep insight into the proposed funding process with an adequate solution to your doubt of ‘how to raise seed capital.
Target Potential investors
It is important to identify your potential investors to get Seed Funding For Startups. The business already in operation faces fewer difficulties as compared to a new business idea. You have to be in line with your commitments.
Try to be ready with reasonable provisions on your commitments. Provide a pre-analysis of your minimum amount and other necessary stipulations. Make the investors willing to negotiate through the outstanding business opportunities in your proposal.
Read Also: Pre Post Funding Compliance For Startups
Showcase your Business revenue
An ongoing business generating revenue through the start-up has better prospects of attaining seed funding from the investors. This report displays the demand for your product or service and opens the way for more projections of your future business prospects.
It is easy to gain the attention of investors to get Seed Funding For Startups through crowdfunding or individual investors without getting into any complex process of seeing external funds in the form of debt.
You need to be presentable with your pitch to the investors to get a solution to your doubt of ‘how to raise seed capital ’ in exchange for a stake in your company’s growth.
Corporate seed funds and incubators
Mega-corporations and tech giants such as Apple, Google, Intel, etc are ready investors for the new innovations in the industry. These investments bring with them high prospects of future acquisition.
The new innovation gets investment and bigger visibility for the product as well. Incubators, on the other hand, are small investors with the provision of office space or any training for the startups along with their investment.
Often, the incubators provide investment without acquiring a stake in the startup. Through incubators, you get the opportunity to shape your idea or prepare a market-fit product or service.
Startups should prepare well for the solution to their troubles of ‘how to raise seed capital’ before facing the investors in the seeding round. You have to be creative with your strategy and be readily available with any extra effort whenever required to get Seed Funding For Startups.