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  • Investors Guide for Startup Funding

     Ansh Godarey updated 6 months, 1 week ago 5 Members · 11 Posts
  • Aman Jaith

    Member
    March 12, 2021 at 1:08 pm
    banana-2 0
    crowns-1 Level 1

    What do investors look for before funding a startup?

  • Kalyani Sheth

    Member
    March 12, 2021 at 1:13 pm
    banana-2 0
    crowns-1 Level 1

    Hi @Aman16 , here are the 4 key investors criteria for funding a startup:

    1) Team

    2) Product

    3) Size of Market

    4) The valuation

  • Abhishek Joshi

    Member
    March 12, 2021 at 1:23 pm
    banana-2 171
    crowns-1 Level 1

    Hello @Aman16

    There’s a reason behind why startups are called startups. These types of companies have scalable characteristics and a flexible business model that can reach heights.

    Its important to understand that Investors want to make money and that’s why they are investing their money in risky startups. So they would be highly interested in your companies valuation and what growth you provide in a time span of 5-10 years.

    • Kalyani Sheth

      Member
      March 12, 2021 at 1:31 pm
      banana-2 0
      crowns-1 Level 1

      True @Abhishek ! I always read articles about entrepreneurs complaining of inadequate capital in the startup market, citing the investors are not putting in money in their startups.

      I believe that may be the case in some situations, but I also interacted with some VCs and business angels and they gave a different reason: “Startup founders don’t understand that our goal is to make money and that not every single startup needs or should receive external funding”

    • Aman Jaith

      Member
      March 12, 2021 at 4:51 pm
      banana-2 0
      crowns-1 Level 1

      That’s something insightful. I will process a estimated future sales report of my startup! Thanks for your suggestion @Abhishek .

  • Ansh Godarey

    Member
    March 12, 2021 at 4:58 pm
    banana-2 276
    crowns-1 Level 1

    What is a good ROI for a startup?

    Any accurate answers will be appreciated.

    • Kalyani Sheth

      Member
      March 12, 2021 at 5:05 pm
      banana-2 0
      crowns-1 Level 1

      Hey @Ansh ,

      To be precise large companies might enjoy great success with an ROI of 10% or even less. Small business owners usually have to take more risk, so I assume small companies should look for an ROI between 15 to 30 per cent

      • Ansh Godarey

        Member
        March 12, 2021 at 5:16 pm
        banana-2 276
        crowns-1 Level 1

        Thank you for your reply @Kalyani ! Can you also tell me what’s the fair percentage for an investor in the companies shares?

        • Kalyani Sheth

          Member
          March 12, 2021 at 5:22 pm
          banana-2 0
          crowns-1 Level 1

          Logically speaking, Angel investors want 20-25% return on the money they invest in your company. Whereas, venture capitalists make take even more. If your product is still under development, and investor may demand 40% of the business citing higher risk taking.

          • Ansh Godarey

            Member
            May 22, 2021 at 9:34 am
            banana-2 276
            crowns-1 Level 1

            That’s great! Thanks for sharing.????

  • Lilavatee Kohli

    Member
    March 12, 2021 at 5:10 pm
    banana-2 3
    crowns-1 Level 1
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