Funding Your Startup
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Transcript of Funding Your Startup
FUNDING YOUR STARTUP A guide to finding finance
Contents ■Before Your Search Begins■Finding Finance ■Bootstrapping ■Crowdfunding■Family and Friends ■Traditional Lenders ■Angel Investors ■Venture Capitalists
■ Incubators ■Accelerators■How Extentia Can Help
Before Your Search Begins■You need:
■High quality business plan ■Confidence in your idea■To be prepared to network■Extensive market research■The perfect pitch deck
Finding Finance ■Support for startups has
never been stronger ■There are many options
for financing your idea ■Each method has its own
benefits and drawbacks■ It is important to do your
research and choose the perfect option for you and your startup
Bootstrapping ■Some startups begin with
minimal financial resources
■ Instead of relying on external input, they use personal savings
■This can involve working part-time or building up debt
■Can be slow and risky
Crowdfunding ■ Involves finding funding
from a large number of people
■This is often via the internet or subscriptions
■You are encouraged to perfect your business plan before showing to your huge audience
Crowdfunding Example: Kickstarter ■The world’s largest funding
platform for creative projects
■Encourages thousands of amazing startups
■Startups upload their ideas■Users choose whether to
donate
Family and Friends ■38% of startups receive some funding from friends and
family ■This encourages other forms of funding and
demonstrates confidence
Traditional Lenders: Bank Loans■Bank loans need an understanding of your business and
the risks associated with it■ It is important to have:
■High credit score■Steady revenue ■Confidence
■The government can also offer support■The Startup India initiative is helping startups find
funding via the MUNDRA bank endeavor
Traditional Lenders: Bridge Loan■Short-term loans can provide what you need until
another method of funding is secured■Large fees tend to be associated with bridge loans ■Annual rates can be more than 10%■Quick and easy■Very high risk
Angel Investors ■An angel investor is an affluent
individual■The investor provides capital
for a startup business■Convertible debt or ownership
equity are commonly offered in exchange for the funding
Venture Capitalists ■Venture Capitalists (VCs) invest their capital in startups■Startups need to demonstrate potential for long-term
growth ■The illiquidity makes such investments risky ■Real potential for impressive returns ■Returns depend on success of startup■VCs can often influence decisions
Incubators ■ Incubators help startups to solve common problems faced
■Workspace■Funding ■Mentoring ■Training
■ Incubators tend to focus on a particular market■Working together is key!
Accelerators ■Accelerators work over a set time frame and are very
selective ■Provide everything necessary:
■Mentors■Finance ■Networking ■ Interns■ Infrastructure
■They accelerate you into success!
Accelerator Example: Amplifi■Extentia has recently partnered with Amplifi■The accelerator is the first of its kind in India■Amplifi offers a rigorous program for B2B (Business to
Business) SaaS (Software as a Service) startups■Provides everything crucial for success
How Extentia Can Help ■Our dedicated Startup Consulting Team are passionate
about providing the knowledge startups need for success
■To find out more please visit us here
THANK YOU!Share your feedback onhttp://www.extentia.com/contact-us