Best Sources For Venture Capital Finance In India

Venture Capital Finance in India

The venture capital industry in India is rapidly growing in size owing to the entry of large numbers of local and global venture capital firms craving for high-potential startups. However, there is still a lot of scope in the sector as there currently only a few 100 companies in the country offering venture capital finance to innovative startups. However, the funding option isn’t always suitable for all startups so it is best to study both the pros and cons of the option and then reach a conclusion.

So, if you have already determined the suitability of the option and now looking for an investor in India, here’s a list of some of the most active venture capital companies in India that are investing in fast growing markets like Technology, Energy, Finance and various other sectors. If you have an innovative idea that can bring a change to the society and a super-efficient team to execute the plan, there is always money for you in the market.

Some Of The Most Active Venture Capital Finance Companies In India

Helion Venture

Located in - Gurgaon and Bangalore

Makes early to mid-stage investments across sectors like Mobility, Online Services, E commerce, Enterprise Software, etc.

Band of Angels

Located in - Mumbai

Primarily invests in healthcare, wellness and software; makes seed, early and later stage investments.

Light Speed Venture Partners

Located in - New Delhi

The company invests in Software, Enterprise Software and Mobile; prefers seed, early, later stage investments along with Private Equity, Debt Financing and Grants.

Bessemer Venture Partners

Located in - Mumbai

Preferably looks for startups across Mobile, Software, Enterprise Software and makes seed, early and later stage investments along with Private Equity and Debt Financing.

Battery Ventures

Located in - Mumbai

The firm mainly invests in Analytics, Software and Enterprise Software; usually makes seed, early and later stage financing along with Private Equity and Debt Financing.

Matrix Partners

Located in - Mumbai

The investors look for innovative ideas in Software, Enterprise Software, E commerce, Mobile, Financial Tech, and SAAS; make seed and early stage investments.

Accel Partners

Located in - Bangalore

The firm invests in Infrastructure, Internet and Consumer Services, Cloud Enabled Services and mobile software. It prefers growth stage investments.

Jumpstart Ventures

Located in - Bangalore

Makes early, later stage and Debt financing with prime focus on Internet, E commerce and Software.

New Enterprise Associate

Located in - Bangalore

Prefers seed, early, later phase investments including Private Equity and Debt Financing with interest in Mobile, Biotech and Software.

Canaan Partners

Located in - New Delhi

The company prefers sectors like Biotech, Software and Healthcare. The preferred stages of investment include seed, early, later and Private Equity and Debt Financing.

Conclusion

Nothing can stop you if you have the right set of things to convince a VC firm. A unique business idea, a capable team, a strong value proposition, a sizable and scalable market and an innovative business model are some of the basic prerequisites for raising venture capital. Ideally, you should also get your business valuation done as it will enable both you and the investor to recognize the real worth of your business.

For more valuable information on venture capital finance, feel free to get in touch with us at http://mergeralpha.com/.

Happy fundraising!

Advantages And Disadvantages Of Venture Capital Funding

Venture Capital Funding

Raising a business is like raising a child. Both demand dedication, love, sincerity, effort and time. However, raising a business often calls for raising capital which comes with huge responsibilities as you are expected to delight your investors with huge profits after a certain period. As a first-time entrepreneur with a seed-stage startup, you may find it very difficult to convince banks or other financial institutions. So the common options you are left with, typically, includes friends and family, incubators, crowdfunding and venture capital funding.

While the other funding options do not require much forethought, venture capital funding do require a good amount of homework as it comes with a lot of terms and conditions which might not be always favorable for your startup. So to determine whether or not it is a suitable option for you, you can read the advantages and disadvantages of VC funding mentioned below. If you think the points under disadvantages don’t really bother you, then yes, you must chase a VC!

               

Advantages Of Venture Capital Funding

●        A venture capital firm can give you access to maximum amount of fund that no other investor can think of.

●        You can raise your business with other people’s money.

●        You can not only grow your business but also expand your company with venture capital.

●        A venture capitalist can add great value to your company by investing in it.

●        They offer many other additional services apart from capital such as knowledge sharing, offering guidance and mentorship, sharing valuable contacts and expanding your business network.

●        You get introduced to many influential people in the startup eco-system who can offer your new ideas on business building strategies.

●        Venture capitalists, typically, have years of experience in managing finance and business. They are always available to offer you proper guidance on how to utilize the fund to gain maximum profit.

●        Once you manage to partner with a VC, finding another VC becomes easier.

Disadvantages Of VC Funding

●        There is huge competition in the VC industry. Out of 100, a VC firm usually selects only 2 or 3 startups for investment.

●        The investment tenure is typically, 3 to 5 years after which investors prefer to exit with their share of profit. You have to ensure that you startup can manage to make that much profit within the time-frame.

●        Legal and accounting fees are often very high. If you are aiming for a small-scale business, you must give a second thought to VC funding.

●        A detailed business plan along financial projections are a must. The procedure is comparatively lengthy and complex, so proceeding without proper planning can cost you hugely.

●        VC companies are usually actively involved in your company’s decision-making process so there consent is a must at every step.

●        They usually offer the capital in exchange of a share of your ownership in the company. If you are too concerned about your control over your business, you should better look for some other funding option.

●        There are chances of your losing control over the business if you cannot manage it properly.

●        Watch out for your share of profit percentage at the end. 

Conclusion

So these are some of the major factors, typically, associated with raising venture capital. Some are really exciting while some are matters of serious concern. At the end of the day, it is all capital that brings in capital, i.e. you must have enough money to jump into the campaign. And even before money, what you need is a highly innovative business idea that carries a much-awaited solution for the target customers.

If you have a unique idea, a smart and talented management team, an innovative business model, a scalable market, a strong value proposition, an interesting pitch and enough capital for your campaign, you are quite likely eligible for venture capital. So explore your strengths and get ready for the most suitable fundraising campaign! Also, do share with your experiences with VC raising.

For more information on venture capital funding, feel free to visit Merger Alpha. 

Pros And Cons Of Venture Capital Financing - Know What You Need

Venture Capital Financing

So you are determined to set your business off the ground. Great! No doubt you will explore venture capital financing at some point of time as it is one of the most sought after funding options among entrepreneurs. While there is an undeniable potential in the option to help your business grow and expand, it may not always be the best one for your startup.

Whether or not to raise venture capital is a critical question that you must have to answer depending on what matters to you most - getting rich quickly or being the sole controller of your startup and help it grow on its own pace. Here are some of the pros and cons of VC financing that should help you in your decision making.

Pros And Cons Of VC Financing

Pros

●      You get access to huge amount of capital phase by phase.

●      VC financing is targeted to high-risk startups.

●      The VCs offer many additional services apart from the capital such as offering guidance, mentorship, sharing contacts and assisting in building business strategies.

●      Raising venture capital is a great learning experience that helps you rise as a better entrepreneur.

●      You get the opportunity to build and grow your business with other people’s money.

●      Even a single VC can add great value to your startup by investing in it.

●      VCs are familiar with your industry and know a lot about the latest trends so they can always be a good source knowledge for your team.

●      He can help you in critical decision makings.

Cons

●      The funding option is not for every startup.

●      There is tremendous amount of hard work and sincerity required in process.

●      Without a sound knowledge of finance, the VC route is totally dark.

●      The investor would like to take part in your board so that they can track the growth of your business at the same time ensuring that the capital is being utilized in the most productive areas.

●      You may lose control over your business if you cannot handle the business properly.

●      If you are too concerned about your control over your company, venture capital is not the option for you.

●      You may need a lawyer and financial advisor which is going to be little expensive though worth the money at the end.

Conclusion

Typically, venture capitalists prefer to invest in established businesses or at least those that have already started earning revenues. However, there are many firms that are involved in seed-stage funding too so you always have options in the industry - all you need is the right set of tools to raise the money. Some of the prerequisites for venture capital include an innovative idea (product or service), a sizable and scalable market, an innovative business model, an impressive first pitch, a strong value proposition, etc.

Do share with your choices and experiences regarding fund raising in the comment box given below. For more information on venture capital financing, feel free to get in touch with us at Merger Alpha.

Good Luck!

Some of The Most Active Venture Capital Finance Firms in Singapore

Venture Capital Finance Firms in Singapore

Venture Capital Finance In Singapore

Venture capital finance is increasingly becoming a preferred capital raising option in the startup ecosystem. While the whole Southeast Asian region is experiencing a boom in the VC industry, the city-state of Singapore is certainly leading with numerous local and global private equity investors eyeing on potential sectors.

Some of the top venture capital firms in Singapore that have already invested millions of dollars in the startup arena are now exploring more investment opportunities in the city-state. If you have a newly-started business and consider venture capital as an ideal option for fund raising, the below mentioned list of investors will definitely come handy in the near future.

     

List of Top Venture Capital Companies In Singapore

Ardent Capital

Headquarters - Bangkok

Sector - E commerce, Finance, Venture Capital

Stage - Seed and early stage investments.

Adam Street Partners

Headquarters - Chicago, IL

Sector - Software, Enterprise Software, Biotechnology

Stage - Seed, early and later.

Carlyle Group

Headquarters - Washington, DC

Sector - Healthcare, Software, Web Hosting

Stage - Early, later stage and Private equity investments.

JFDI.Asia

Headquarters - Singapore

Sector - E commerce, Mobile, Software, B2B Enterprise, Web.

Stage - Seed, early and grant investments.

Jungle Ventures

Headquarters - Singapore

Sector - Consumer Internet, Enterprise Tech

Stage - Seed and early stage investments.

Welden International

Headquarters - San Francisco, CA

Sector - Semiconductor, Security, Software

Stage - Seed, early and later phase venture capital finance along with Private equity investments.

Extream Ventures

Headquarters - Singapore

Sector - Software, Social media, Enterprises

Stage - Seed and early phase investments.

GGV Capital

Headquarters - Menlo Park, CA

Sector - Mobile, Internet, E-commerce, M-commerce, SAAS, Digital media, Enterprises, etc.

Stage - Seed, early and later phase venture investments along with Private equity and Debt Financing

Gobi Partners

Headquarters - Shanghai

Sector - Advertising, Photography, Travel.

Stage - Seed, early and later phase investments.

Golden Gate Ventures

Headquarters - Singapore

Sector - Software, Enterprise Software, E commerce, SAAS, Logistics, Mobile, Payments, etc.

Stage - Seed and early phase financing.

Intel Capital

Headquarters - Santa Clara, CA

Sector - Enterprise, Mobility, Digital Media, Consumer Internet,

Stage - Merger, acquisitions and Private equity investments.

Innosight Ventures

Headquarters - Singapore

Sector - Finance, E commerce, Security.

Stage - Seed and early phases.

SingTel Innov8

Headquarters - Singapore

Sector - High-tech startups.

Stage - Early stage investments.

JAFCO Asia

Headquarters - Singapore

Sector - E commerce, Mobile, Games

Stage - Seed, early and later phase investments.

SEAVI Advent

Headquarters - Singapore

Sector - IT, Cleantech, Telecommunication, Energy, Retail, etc.

Stage - Early and later phase along with Private equity investments.

Infocomm Investments

Headquarters - Singapore

Sector - Advanced Technology.

Stage - Growth stage investments.

iGlobe Partners

Headquarters - Singapore

Sector - Software, Manufacturing and Cloud Computing.

Stage - Early and later phase investments.

Stream Global

Headquarters - Singapore

Sector - Digital Media, Mobile Tech and ICT.

Stage - Seed and early stage financing.

McLean Watson Capital

Headquarters - Toronto, ON

Sector - IT, Internet, Telecommunication, Energy, Software, etc.

Stage - Seed, early and later stage investments.

Upstream Ventures

Headquarters - Singapore

Sector - Software, Security, Biometrics, IT, IDM, Internet, etc.

Stage - Seed, early and later phases.

TNF Ventures

Headquarters - Singapore

Sector - Payments, Consumer, Travel, etc.

Stage - Seed and early stage investments.


Conclusion

Once you set off your fundraising campaign, make sure you chase the investors and not just the firms. In other words, all investors have their specific taste and preference, so it is better to identify and chase a person who you think will be interested in your idea which, needless to say, must be a unique one.

For more information on venture capital finance, feel free to get in touch with us at mergeralpha.com.

Good luck! 

What Investors Look For Prior To Venture Capital Financing

Venture Capital Financing 

That awesome moment when no one is showing confidence in your startup and then suddenly you find a venture capitalist ready to invest in your seed stage startup and enable you to turn your dream into reality! Wow! It’s a dream come true! But wait, attracting a VC for venture capital financing isn’t a game either.

As per researches, out of 100 startups, VCs usually select only 2 or 3 so you can easily figure out the toughness of the financing option. That said, if you have all the necessary things in the right place, you will always find it easier to grab the attention of a venture capital firm. Below are the most important factors that VCs take into consideration before investing in your business.

Most Important Aspects That A VC Would Look For In Your Startup

A Unique Idea

Your idea is the first thing that will catch their attention; if they find it interesting, innovative and competitive, they will definitely value it highly. Venture capital firms, typically, prefer to invest in high potential ideas which can be a product or service with huge demand in the market. You don’t have to create something completely new; even an innovative twist to an existing product or service can also bring in potential customers. This is the first thing that a VC would look for in your venture.

A Strong Value Proposition

Any business has to have a unique selling proposition that can compel customers to switch brand. If you can demonstrate to your customers why exactly a customer would buy your product/service, it is a win-win situation almost. You can create a superb working model of your business and bring in a set of beta customers to demonstrate market traction.

An Excellent Team

To implement and execute a brilliant idea, you need a brilliant team which is the next biggest requirement for attracting venture capital financing. Try to assemble the finest of finance and management experts for your leadership team as these experts are ultimately going to execute your idea and give a definite shape to your business. A smart, intelligent, innovative, committed and honest team can significantly increase the value of your startup so try to arrange it as early as you can.

Other Interested Investors

VC funding is very much based on demand you can drive for your startup among other investors. These investors would feel more interested if there are other investors standing on the line for your idea. This gives them the assurance that your idea is in demand and there are good chances of huge revenues. If you have more than one active investor for your startup, it is great achievement as you don’t have struggle much to prove the authenticity and potential of your business.

Conclusion

Try to ensure that all the the above aspects of your business are in the most desirable state so that you can easily convince a VC to think about your startup. Moreover, if you can bear 25 to 50 percent of the investment through your personal savings, it is undoubtedly be a head-turner for the investors. If that sounds impossible, then at least 10 percent is also good enough to prove your confidence in your startup. Money is there, all you need is to be present at the right place at the right time with the right set of things.

For more information on venture capital financing, feel free to visit http://mergeralpha.com.

Pros And Cons Of Venture Capital Financing: Never Hurry!

Venture Capital Financing

Venture Capital Financing

Pursuing venture capital financing, though sounds exciting, is actually venturing into a highly challenging task, perhaps, even more challenging than starting a new business. However, if there are failed attempts than there are success stories too! So no need to get disheartened with the complexity of the fund raising campaign - simply move forward with a positive attitude and the prerequisites like a unique idea (products or service), a great team, an innovative model, a strong value proposition and an interesting pitch.

However, there are the major aspects of VC financing that you must know before embarking into the campaign as you never know how far these aspects may sound appealing to you as an entrepreneur. If you think the advantages of this financing method dominate over the disadvantages, you know you should for it, or else, you may have to give it a second thought.

So let’s have a look at the various pros and cons of venture capital investments so that you know what to expect in due course of time.

Pros And Cons Of Raising Venture Capital

Pros

1.      Venture capital is the biggest source of fund your business can ever receive.

2.      Venture capital financing compels you to push your boundaries so that you can raise it with ease. This in turn significantly increases your overall business potential.

3.   Raising venture capital is like receiving a certificate of trust that attracts more and more investors to pour money into your startup.

4.      Apart from capital, venture capitalists offer many additional services like knowledge sharing, offering guidance, contacts sharing, offering assistance in building exit strategies, etc.

5.    VCs help you widen your business network and bring you to the limelight so that you can attract further financing.

6.      The venture capital tenure ranges from 3 to 7 years so you have enough time to make money for the investors as well as your business.

7.     VCs are masters of management and finance so you have enough scope to learn from them so as to boost your revenues.

8.    There is no dearth of money in the VC industry. They usually invest between $ 500,00 to $ 5 million.

9.    Since they are waiting to gain profit from your business, they will try to offer the best possible resources to your company.

Cons

1.      Raising venture capital is a challenging task and is at, at times, not suitable for all startups.

2.      Convincing a VC is, perhaps, one of the toughest exams you would ever appear.

3.    Venture capitalists usually prefer to invest in growth stage or later stage only. However, there are some who prefer to invest in seed stages too.

4.      Not finding a suitable venture capital firm can end up wasting your valuable time and money. You must follow only those who are interested in your sector and stage of development of your startup.

5.  Partnering with a venture capital company means you have share your control over the company with the investors. If this becomes a major concern for you then venture capital is definitely not the right option for you.

6.    They might want to become a member of your board and will always keep an Eagle’s eye on how and where the fund is being utilized so as to ensure that even a single penny contributes to their ultimate ROI.

7.     There are cases where a VC firm completes takes over the control on their investee company if the company/startup is not able to make money on its own.

Conclusion

So now it’s all up to you to decide whether or not to spend time on this source of capital. You can always take the help of a startup advisor or take suggestions from other entrepreneurs who have already tasted success through venture capital raising.

No matter what, it will still remain a fact that once you raise VC money, the path ahead will become smoother for your startup. Do share with us your thoughts and queries in the comment box given below.

For more information on venture capital financing, feel free to get in touch with us at Merger Alpha.