If you were inspired by the funding of startups or startups making it big in the last 2-3 years, you were falling prey to an impractical rosy picture. The funding landscape is changing and you will have to understand the the new paradigm and how you can create a successful, fund-able startup,
in the current and coming years. The key points are:
-> Understanding the shift in startup funding paradigm
-> The change in the key factors (unit economics, CAC,
LTV etc.) that would make your startup fund-able
-> How a small startup can prepare (documentation, the
process etc.) itself to get funding.
-> How to connect to angel investors.
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Funding Landscape is Changing: You need to learn the new rules:
1.
2. Agenda:
Snapshot of Funding Landscape
Recent stories: Tinyowl, Local Banya, Grofers
To worry or not
Adapting to the change
Preparing to get funded
4. Investor No. Of Deals
Sequoia 46
Tiger Global 35
Accel Partners 33
Saif Partners 26
IDG Ventures 32
5. Company Investors Investment
Grofers Sequoia, Tiger Global,
Softbank
$120 M
Ola Tiger Global, Didi Kuaidi,
Softbank, DST Global
$500 M
Oyo Rooms Softbank, Greenoaks,
Sequoia, LSVP
$100 M
9. Investor Fund Size
Accel Partners $ 300 Mil
Kalaari Capital $ 300 Mil
IDG Ventures $ 200 Mil
Nexus Venture
Partners
$ 450 Mil
Saif Partners $ 350 Mil
Lightspeed $ 135 Mil
14. • Founders need to drive at 300 kmph
• Moderation is required. It’s an international phenomena.
• Early stage deals are relatively easier. Series A and beyond is the
challenge.
• Consolidation is good in long-term
• Boom in e-commerce supporting sentiment across other industries
• More than 5 Unicorns in India
• Startups a good alternative investment for HNIs
• Successful exits for investors in Freecharge, TFS, CommonFloor
• SD, Zomato founders pumping money into startups
• New fund launches
15. • Identify the problem you are solving
• Need and paying ability of consumers
• Is the market big enough?
• First mover advantage is not enough
• Differentiation & USP
• Barriers to Entry
• Customer Experience
• Scalability
• Unit economics & Operating margin*
• Customer acquisition costs
• Consolidation vs. Aggressive expansion
• Spend wisely
• Long-term sustainability
16. • Should I raise funds?
• Is this the right time?
• How much should I raise?
• What are my options?
• What equity investors look for?
• How much should I dilute?
• What documentation do I need?
• What does the funding process look like?
• How do I reach out to investors?
• What can I do to better my chances?