Demystifying capital spectrum for startups
Catch Srikanth Prabhu, as he shares the deep dives through various early stage startups, their bootstrapped to funding journeys, and key things to keep in mind before you meet an investor. The session was joined by a panel of people in an interactive session where he took questions such as: What’s debt funding for startups?, topics also included where to find the funding avenues for idea level pre-revenue startups and many more.
The discussions were led to enlighten everyone on understanding the available climate Funding with DBS. Why developing a prototype increases the chances to get funded with proof of concept playing a crucial role. Besides, demystifying convertible instruments which behaves like debt on day 1 but converts into equity eventually. Startups cannot simply rest on the uniqueness of an idea or the hard work being put in, the inflow of funds is directly linked to the probability of success or failure as well. And these days as the Indian startup ecosystem has matured, startups have plenty of avenues to get started. From bootstrapping to seed funds to angel investments.
Fundraising 101: Demystifying equity vs debt funds
Equity financing takes place when an investor or a venture capital firm invests funds in a startup. In this case, the startup doesn’t need to pay back the fund invested to the investor but instead has to part with a chunk of company shares and give it to the investor.
Debt financing takes place when the investor or venture capital firm basically lends money to the entrepreneur, against a rate of interest, for a given period, with company assets as securities. Here, there is no question of the investor acquiring company shares, but the startup has to repay the amount borrowed along with the interest at predetermined rates.
Capitalising on the evolution of growth
Indian startup funding landscape continues to evolve rapidly despite pandemic. Startup landscape is changing very quickly, with syndicates, angel investors and networks, and micro VC funds, contributing as significant assets. In fact, India witnessed the most prosperous fiscal year in 2021 in the country's startup history with 33 startups gaining a value of 1 billion dollars and above. There are 66,000 more startups that attracted Global Capital in 2021.
Keep disrupting, happy funding!
