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The era of business and startups has changed dramatically. There’s a change, especially after the COVID pandemic. It’s important for each one of us to understand the funding landscape. For the future as well as the present. Initially, the only goal of businessmen was series-A funding. If one didn’t have any traction, the only way forward was bootstrapping. Today, startup investing is competitive. There is a new level of funding categories in the market. Pre-seed funding is one such way to set up your business. It’s good for your business growth and success.
Pre-seed funding answers the most common question of ‘How to raise seed funding in India’. The startup funding process begins with the right investment and right guidelines. It requires specific preparation to reach the right target. The business grows eventually and shoots up.
Pre-seed investors are a boon to the startup industries. That’s because they allow them to raise funds. They require bringing minimal viable products to life.
Pre-seed Funding in Layman Terms
An investor makes a small investment for a startup. This is for the primary base operations. The investors invest in the business knowing the founder personally. Or, if they’ve strong faith in the business idea. The activity of investing is known as pre-seed funding. There are many platforms where you get a return for the stake in business ideas. Pre-seed funding can be reached with the help of crowdfunding as well.
Pre-seed Funding in India
It might look nerve-racking when you meet the pre-seed investors. In the initial stage, one might not have the vision that you carry. Like other funding rounds, the key to finances is to have your finances organized. A clear business plan will always be yours. The tips given below will help you out –
Have Profitable and Financial Clarity
It’s crucial to set an easy and clear outline of the business path. This is good for the profitability of the business. If you’re a thoughtful business plan, it will serve as a long-run road map for the startup. There are chances that you might grab the investment. The financial estimates must be concise and attainable. This will put emphasis on transparency and business strategy. Credibility can win the investor’s funding and trust.
Keep the Business Proof Ready
Whenever you’re pitching in front of the investors, the key to winning is to show business proof. Test the business idea in the market. Communicate all the assumptions in a clear manner. In this way, you can share your business plan with the investors. This will help you get the pre-seed funding for your startup. To briefly conclude, you must show your credibility to the angel investors. It’s one of the best ways to show your worthiness. Be clear and confident about the past records. Share the accomplishments that you’ve acquired in the past. That’s how you can begin the startup funding process.