Why we need to Fundraise ?
Why Startups need to fundraise?
Startups need to fundraise to secure the necessary capital for product development, marketing, and scaling their operations. Additionally, fundraising allows them to access valuable resources and networks that can accelerate their growth and increase their chances of success.
Benefits of Fundraising
Fundraising provides startups with the capital needed to innovate, scale operations, and reach their market potential more rapidly. It also opens doors to valuable connections, mentorship, and strategic partnerships that can enhance their business growth and sustainability.
Funds Secured by Indian Startups
Indian startups secured nearly $7 billion in funding during the first half of 2024, surpassing the $5.92 billion raised in H1 2023
Different Stages of Fund Cycle
01.
Pre-seed
Pre-seed funding is the initial capital raised by a startup to validate its idea and build a minimum viable product (MVP). This early stage of investment is crucial for startups to gain traction, attract talent, and lay the groundwork for future funding rounds.
02.
Seed
Seed funding is the initial capital raised by a startup to develop its product, conduct market research, and build a solid foundation for future growth. This early investment is crucial for startups to validate their business model and attract further investment from venture capitalists and angel investors.
03.
Series A
Series A funding is a critical stage where startups secure capital to further develop their product and scale their business operations. Typically, this round involves investors who provide not only financial support but also strategic guidance to help the startup grow and succeed.
04.
Series B
Series B funding is a crucial phase for startups looking to scale their operations, enhance their product offerings, and expand their market presence. This round of investment typically involves venture capital firms providing significant capital to support the company's growth and solidify its market position.
05.
Series C and beyond
Series C and beyond marks a critical phase where startups focus on scaling rapidly, expanding into new markets, and solidifying their market position. These funding rounds attract major investors who seek to support companies with proven business models and substantial growth potential.
06.
IPO
An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time, transforming into a publicly traded entity. This allows the company to raise significant capital, enhance its public profile, and provide liquidity for its existing shareholders.