Securing good funding for your startup is like securing a scholarship, that is, now you don’t have to worry about the finances and you can simply monomaniacally focus on the main task in which you are supposed to excel. But unlike scholarship, hard work and being meritorious won’t suffice to land investment worth crores. You also need to show to investors that everything is transparent and sorted at the fundamental level in your organisation.
Sources of External Funding in India
Though there are many sources for organisations to raise funds from like angel investors, venture debt funds, venture capitalists, crowdfunding, IPOs, financial institutions, but the source of funds must align with operations of your organisation. There are different sources to raise capital depending upon which stage your business is. Ex: You will not raise money from crowdfunding if you are an incumbent company with INR 5 crore turnover.
Time Taken to Fundraise
Fundraising from external sources is a cumbersome process and can easily take 6 to 8 months if everything goes well.
Fundraising Compliances and Documentation
- Revamping organisational structure;
- Equity structuring;
- Share capitalisation table
- Due Diligence: Preparing reports pertaining to the financial, corporate, and contractual status of your organisation for presenting to investors. Furnishing documents around assets and Intellectual property;
- Term sheet: Type of securities, investment criteria, management rights, etc;
- Investment or Shareholders’ agreement;
- Preparation of vesting provisions;
- Subscription agreement;
- Article of Association;
- Registering under Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SCES).
With USAIndiaCFO, other than the premium quality financial and legal services, you also get exclusive access to our ever-growing global network of 3,500+ clients giving you a better shot for securing investments at favourable terms and building lasting relationships.
In our experience, many startup organisations fail to raise funds because they couldn’t convince the investors about the business capabilities of the organisation and having robust legal and financial comprise a substantial part of it. USAIndiaCFO has been serving start-ups which raise investments more frequently for 10+ years now, making it the perfect choice as a compliance partner. On top of that, we also assist businesses with managing their CAP table, the optimal path for equity issues, tax-effective offloading of the stake, etc.
To know more about how we will implement our optimum and innovative solutions in your organization to help you land your first crore, give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at firstname.lastname@example.org and our team will reach out to you within 2 hours.
We offer Brand registration, along with a range of other services to take full accountability as the virtual CFO to your business.
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