It is very common these days to hear about funding news in India. From the stats broadcast of one of the best startup funding auto-aggregator online, almost 10 startups get funded in India per week. But still, almost 99% of the small ventures and startup are yet looking for funding.
While there are many articles online which will speak over 1000 words about How to get Funded and related topics. But, the things that I will write here are from the outcome of a recent gyaan/ conversation that we had with Vikram Upadhyaya who is Chief Mentor at GHV Accelerator and have given billions of dollars in funding and mentor-ship.
Startup Funding : Things Investors looks for while Investing in a Startup
As per GHV Accelerator Mentor, investors look for a team more than an idea. They say that even if an idea is not something which is like “auto-robot”, mostly what matters is the core-team and their expertise. In 99% cases, a team with co-founders is preferred over those who have single-founder.
Investors are keen to know about your perspective and progress till date on the idea that you are implementing. The level of execution over idea is important before you go in-front of anyone for mentorship or funding.
Also, you cannot just go with an idea which is no where at implementation. Remember, investors do invest in ideas but there are only a handful which do so.
The idea being implemented should have such a future that must be easily scalable and can be taken into international market with ease. This is the prime reason behind success of hyper-local markets as their implementations are highly scalable.
If core-team of a startup do not have a technology expert who is able to design the product himself, the chances of getting funded are almost negligible. In fact, as per experts, if technology aspects of a startup is outsourced to freelancers, third-party agency then their chances of getting funded are almost none.
- PoC – Proof of Concept
A working prototype which is well-researched is always preferred by investors. While it might be difficult for anyone to explain their idea in words, a working prototype or MVP – Minimally Viable Product does help high in funding.
I could relate all of the above points with my experience with startups and new ventures looking for funding. Hope these are helpful for anyone who is soon going to face the startup funding round.