Guide to Venture Capital to Commence your Startups

Barry

Entrepreneurs have to go through a struggling journey to validate their position in the market. Resouces and capital are the predominant factors to earn revenue. Small burn-rates businesses do not require much funding to begin their journey. However, those who have higher ambition and a higher perspective to manage their business in a competitive space are fighting for their space. Venture Capital is a financial method in which firms and funds are provided to achieve high growth potential. The firms and funds are provided as per the structure of a business, in respect of the number of employees and annual revenue. The venture capital investment initiated at the first round of ‘seed funding’ stage, when the first investor invests capital in a startup in exchange for an equity stake. 

Now let me give you an idea about how Venture Capital works

Venture Capital elevates the money from individual investors and with the help of a firm, high-interest fund investments are done. The company pays the firm back for further investments when needed and accrued interest.

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A VC traditionally works with high-growth potential startups. They offer you resources and helps to grow the business rapidly. It manages pools of money and gives you an idea, how to invest and where to invest. The amount increased by the funds instructs you about the investments, they are interested in. The group is the perfect partner for your venture. The perfection in your business will be visible as per the industry knowledge and experience of the team. As they work with a lot of businesses, they are efficient in handling and identifying issues. This is the reason companies are looking forward to taking the guidance of the venture capitalist route.

“Most VC funds are far too concentrated in a small number (<20-40) of companies. The industry would be better served by doubling or tripling the average (number) of investments in a portfolio, particularly for early-stage investors where startup attrition is even greater. If unicorns happen only 1-2% of the time, it logically follows that portfolio size should include a minimum of 50-100+ companies in order to have a reasonable shot at capturing these elusive and mythical creatures.”

You can rely upon these trusted Firms

you have plenty of options available in the present market to connect with venture capital funds. I am giving you a list of best funds that can elevate your business revenue:

1. Accel Partners

Image Source: https://bit.ly/2YRqWGh

Multi-stage investments are done in Internet technology companies.

Structure of Investment: Investment between $0.5 Mn and $50 Mn.

Industries: Internet Service, consumer service, Cloud, Mobile and software services.

Successful Startups: Book My Show, Flipkart, Myntra, CommonFloor, freshdesk.

Contact Number: 8041232551, 8043539800.

2. Nexus Venture Partners

Image Source: https://bit.ly/2Ek9iRV

This Venture Partners invests at an early stage of startups across industries in India and the US.

Structure of Investments: Invests between $0.5 Mn and $10 Mn in early growth-stage companies. They also invest in seed funding up to $0.5 Mn in their seed program.

Industries: Mobile, data Security, Media, Consumer, Big Data analytics, Technology, Agribusiness, Rural Sectors.

Successful Startups: Snapdeal, Housing, Komli, Delhivery.

Contact Number: 8049456600, 2266260000.

3. Helion Venture Partners

Image source: https://bit.ly/2EjN4Q8

This is an early to mid-stage venture partners, participate in future rounds of financing to syndicate with other venture partners.

Structure of Investments: Invests between $2 Mn to $10 Mn in each company with less than $10 Mn in revenues.

Industries: Mobile, Internet, Retail Services, Education, Healthcare, Outsourcing and Financial Services.

Successful Startups: Yepme, MakemyTrip, NetAmbit, TAXI For Sure.

Contact Number: 8040183333, 01244615333.

4. Steadview Capital

image source: https://bit.ly/34oDhTz

It is a Hong Kong-based asset management team. This firm makes concentrated long-term investments in multiple industries.

Structure of Investments: Early-stage venture and later-stage venture investments.

Industries: Ecommerce.

Successful Startups: Olacabs, Urban Ladder, Flipkart, Saavn.

Email Id: [email protected]

5. Ascent Capital Advisors

image source: https://bit.ly/2RUZBl6

Ascent Capital Firm provides an independent private equity firm, which is among the most experienced teams, supporting over 150+ years in Indian capital markets.

Structure of Investments: Investments ranging from $10 Mn to $30 Mn.

Industries: Technology, Infrastructure, Ecommerce, Financial Services, Healthcare.

Successful Startups: Bigbasket, KIMS.

Contact: 8030551230, 8030551231.

6. Intel Capital

Image source: https://bit.ly/2ssTaLw

This firm has invested over $10.7 Bn in almost 1,250 companies in 52 countries. It focuses on mergers, acquisitions and equity investments.

Structure of Investments: Between $300 Mn and $500 Mn annually.

Industries: Internet-Digital Media, Software and Services, Wearables, Smart Phones-Tablets, Manufacturing-Labs.

Successful Start-up: Hungama, Snapdeal, Gigya.

Contact: US (408) 765-8080.

7. Lok Capital Group

Image source: https://bit.ly/2PSTPh1

This firm has invested as per the specialization in pyramid customer segment investments.

Structure of Investment: Between $1 Mn and $7 Mn.

Industries: Education.

Successful Start-up: Hippocampus Learning Centres, Everest Edusys And Solutions.

Contact Number: +911130900100

8. Naspers

image source: https://bit.ly/2Em0sTN

It is a multinational media group. It has provided analyst coverage services Organization like Citi, Barclays, HSBC, and other top-notch companies.

Industries: Ecommerce, Print Media.

Successful Startups: OLX, Flipkart.

Contact number: +27(0)214062121.

9. Bain Capital Private Equity

image source: https://bit.ly/34uToie

The management team provides the strategic and analytic resources requires to develop the growth of the companies.

Structure of Investments: Between $5 Mn and $2 Bn as per the potentiality of the company.

Industries: Financial business services, healthcare, retail and dining, consumer, media, telecom.

Successful startups: BMC Software, Biglobe, BPL.

Contact: +91-2267528000.

10. Kalaari Capital

image source: https://bit.ly/2szWTqm

They invest in companies that have targeted business model to capture the new market. It provides an innovative solution to generate more revenue.

Structure of Investments: Invest between $1 Mn to 5Mn in tech-savvy companies, and tech-related services.

Industries: Internet, Ecommerce, cleantech.

Successful startups: UrbanLadder, Snapdeal, Zivame.

Contact Number: 08067159600.

Venture Capital funding is an event where financial matters are being managed and discussed. They set up a limit of valuation and the capital as per the goals and requirements of the business. This pre-money valuation plan set the terms and conditions of the investors and the business ideals. In this funding round, the lead investors invest the mammoth amount of capital in the business to commence a new goal.

“Venture Capital has become the most glamorous and exciting corners of finance. Rich heirs used to open record labels or try their hand at producing films, now they invest in start-ups.”

Choose these three killer strategies to add value to your business:

Strategy One: By Adding Value

This strategy increases the rate of return on investment. These investments move up the tail of the curve because of the value the investors create. Betterment of portfolio, recruitment, sale, board support, partnership, marketing are the most common area to aid business. If you want to excel and want the investors to trust your business goals, value-adding is a prerequisite. You would not make it in the venture if you do not work with them as per the requirements. The investors’ ability to add value is extremely important, for the founders. Nowadays to compete with the undeniable market race, founders are looking for investors who will help them to build the company.

Strategy Two: Look for Better Source

this strategy rescales the distribution. Random selection of investments eventually leads to higher expected return than an average venture fund. A unique way to create a better source is to build a better network. It goes for firms with a solid general reputation. If you focus on a particular geological location, it can create bold networks if the funding builds regional dominance. A predictive-analytic approach to team, company, and industry stacks your hand from the beginning. It takes much work to do, however, has attractive returns for the effort. The challenging part in this stage is to find the targeted investor, who is exceptional. Through the mathematical and predictive approach, you can build high-quality and selective networks which can spin-out much high-ability company and can reach out to the founders. Founders tend to go for the investors who have already work with startups, so then they can guide you more efficiently.

Third Strategy: Better Investment

switch venture firms if necessary. Investing better is the finest strategy to give your business an extraordinary shape. It uplifts the frequency in the upper tail of results. Choosing better is the most appealing way to gain an advantage at the primary stage. Bill Gurley suggests, “It is the single most important quality he looks for in a new investing partner.” Guts and brain these two factors play a major role in obtaining growth. Most of the firms share a great variety of performance between the partners. More often, the winners start to become very obvious with the passing of time, as a result, Access becomes a very significant factor in the later stage of the venture. Founders choose to work with VCs that invest better for the same reason and who source better. They want people to connect organizations with the best.

Angel Investors or Venture Capitalists

Angel investors are an individual investor who invests in startups. Angel investors build their own company, whereas, VCs deploy funds from the end of their investing partners. The former plays a great role in the financial processes at the primary level. There are many successful business people and supporters who have benefited from the ecosystem.

  • If they are compatible with your market and product, they can enrich you with the right advice and solid connection to uplift the business.
  • You can form ideas from other founders and community in the same batch to understand the specific angels.
  • Angel investors also often do not have minimum investment requirements.

“A scalable startup is designed by intent from day one to become a large company. The founders believe they have a big idea- one that can grow to $100 million or more in annual revenue- by either disrupting an existing market and taking customers from existing companies or creating a new market. Scalable startups aim to provide an obscene return to their founders and investors using all available outside resources.”

Success in your business is a matter of how you level-up your business. However, Venture Capital is a pre-requisite for the success of your startup, as at the primary level, your investments matter the most. So, think wisely before you choose any capitalists to invest on you, analyzing the goal and ambition of your business would determine, what type of investments is important for your business.

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