Startup Indian Capital Advisory

How much should Startups Raise in each Round?

One of the biggest mistakes founders make is telling investors, “We’re raising because our competitors are raising.” Fundraising should always be rooted in the actual needs of the business. You raise what your own business model demands. But this does not mean that founders should raise all at once. Fund requirement should be broken down in phases, where each round is aligned with the next set of tangible milestones.

When Should Startups Start Planning to Raise Funds?

At an avg. ~27K startups get registered every year under the govt.'s scheme of Startup India. In comparison, an avg. of ~1,750 startups raised seed funding p.a. in the last 3 years. Between these 2 numbers lies a universe of decision making, timing and effort. The fact is, fundraising is a full-time job. Convincing new ones and negotiating with the interested ones will take up all of your productive time.

When should your Startup Break-even?

Here’s the deal: On one side, we have the younger generation championing startups that disrupt industries and make it large. And on the other side, we have veterans glaring with shock at the massive amounts of cash these startups burn in pursuit of growth, coupled with the lofty valuations they command.