QUESTIONS ANSWERED
HOW TO RAISE MONEY FOR YOUR BUSINESS FROM OVERSEAS ?
Raising money is all about showing investors why your idea deserves their backing. Begin by defining your problem, validating your solution, and presenting clear revenue potential. A great example is Paytm, which started by solving India’s cashless transaction problem. Founder Vijay Shekhar Sharma pitched the huge untapped potential of digital wallets in India, convincing Alibaba and SoftBank to invest.
WHAT IS A CONVERTIBLE NOTE ? AND HOW IS IT DIFFERENT THAN EQUITY FUNDING.
A convertible note is like a loan that turns into equity when you raise your next funding round. For instance, in Zomato’s early days, they raised capital through convertible notes to avoid tricky valuation discussions while still bringing in funds. Think of it as a “let’s talk equity later” approach. A very common instrument used with Pre-Revenue companies.
WHAT DO SILICON VALLEY INVESTORS LOOK FOR IN INDIAN STARTUPS ?
Silicon Valley investors love scalability. They’re looking for innovative solutions, global markets, and solid founders who “think big.” Take Freshworks, founded by Girish Mathrubootham, which started in Chennai but targeted global SaaS customers from day one. They leveraged the “Made in India” approach with a global perspective.
HOW DO I SET THE VALUATION OF MY COMPANY DURING FUNDRAISING ?
Valuation is part art, part numbers. Focus on your market size, revenue projections, and potential impact. Think of BharatPe, which justified its valuation based on the sheer volume of small businesses they could onboard for digital payments.
HOW MUCH EQUITY SHOULD I GIVE UP IN EXCHANGE FOR INVESTMENT ?
It depends, but try to hold as much equity as possible in the early stages. Founders like Deepinder Goyal of Zomato managed to dilute only strategically, ensuring he retained decision-making control even through multiple rounds of funding.
HOW DO I APPROACH INVESTORS AS A FIRST TIME ENTREPRENEUR ?
Leverage your network. If you don’t have one, start building it by attending events and connecting on LinkedIn. Fynd, an Indian O2O fashion platform, reached out to Google Ventures after hustling to prove their metrics and reliability. Persistence pays off!