Now imagine two different scenarios. The COVID-19 pandemic has struck, and the business comes to a halt. Terraman has only been able to do a 1 crore revenue by the end of the year. This means that the valuation will only be 2 crores. This is lesser than the funding amount of 3 crore. This implies that Lion Capital will end up acquiring a 100% stake in Terraman. This doesn't make any sense for both the founder and the investor. The other scenario is that Terraman does exceedingly well and makes a 50 crore revenue. In this situation, the investor will end up getting an insignificant stake of 6%. This is not lucrative for Lion Capital at all. To protect both the investor's and the founder's interest, we use a floor and a cap structure. The cap ensures that the founder doesn't end up losing half of their company due to poor performance, while the floor ensures a certain minimum stake that the investors are entitled to, regardless of how well the company performs. The cap is determined basis the minimum stake that the founders are willing to dilute. The floor is determined by the minimum stake that keeps the investors interested in the deal. In Terraman's case, the cap is kept at 20% and the floor at 10%.


To protect both the investor's and the founder's interest, we use a floor and a cap structure. The cap ensures that the founder doesn't end up losing half of their company due to poor performance, while the floor ensures a certain minimum stake that the investors are entitled to, regardless of how well the company performs. The cap is determined basis the minimum stake that the founders are willing to dilute. The floor is determined by the minimum stake that keeps the investors interested in the deal. In Terraman's case, the cap is kept at 20% and the floor at 10%. Here is a table on your screen that tells us the stake that Lion Capital will get for different revenue that TerraMan makes. We recommend that you pause the video and study this table.


The cap is determined basis the minimum stake that the founders are willing to dilute. The floor is determined by the minimum stake that keeps the investors interested in the deal. In Terraman's case, the cap is kept at 20% and the floor at 10%. Here is a table on your screen that tells us the stake that Lion Capital will get for different revenue that TerraMan makes. We recommend that you pause the video and study this table. In summary, CCD is debt that gets converted into equity basis the actual revenue that the company makes. There is another way to structure this deal between Terraman and Lion Capital. This is by using the convertible node structure. This structure works on the assumption that the startup will raise a round of funding in the coming months. Let us see how convertible network works. Like CCD, convertible nodes is also initially a debt with zero interest. At the time of investment, the founders and investors agree upon the investment amount and a discount rate. Consider that Terraman raises a Series A round of 10 crores at a valuation of 50 crores. Now, the discount rate is applied on 50 crore valuation to arrive at a 40 crore number. This becomes a debt of 0.5 crores. Here comes the valuation at which Lion Capital's seed investment of 3 crores gets converted into equity. So this means that Lion Capital will get 7.5% stake in Terraman. But what if Terraman fails to raise funding for the next 3 years? In this case, Lion Capital will penalize the founders by taking up significant stake in the company upwards of 40%. This is called fallback valuation. This is called fallback valuation.


Here is a table on your screen that tells us the stake that Lion Capital will get for different revenue that TerraMan makes. We recommend that you pause the video and study this table. In summary, CCD is debt that gets converted into equity basis the actual revenue that the company makes. There is another way to structure this deal between Terraman and Lion Capital. This is by using the convertible node structure. This structure works on the assumption that the startup will raise a round of funding in the coming months. Let us see how convertible network works. Like CCD, convertible nodes is also initially a debt with zero interest. At the time of investment, the founders and investors agree upon the investment amount and a discount rate. Consider that Terraman raises a Series A round of 10 crores at a valuation of 50 crores. Now, the discount rate is applied on 50 crore valuation to arrive at a 40 crore number. This becomes a debt of 0.5 crores. Here comes the valuation at which Lion Capital's seed investment of 3 crores gets converted into equity. So this means that Lion Capital will get 7.5% stake in Terraman. But what if Terraman fails to raise funding for the next 3 years? In this case, Lion Capital will penalize the founders by taking up significant stake in the company upwards of 40%. This is called fallback valuation. This is called fallback valuation. In summary, using convertible node structure, you determine valuation of your first funding round bases the valuation in the second round.


In summary, CCD is debt that gets converted into equity basis the actual revenue that the company makes. There is another way to structure this deal between Terraman and Lion Capital. This is by using the convertible node structure. This structure works on the assumption that the startup will raise a round of funding in the coming months. Let us see how convertible network works. Like CCD, convertible nodes is also initially a debt with zero interest. At the time of investment, the founders and investors agree upon the investment amount and a discount rate. Consider that Terraman raises a Series A round of 10 crores at a valuation of 50 crores. Now, the discount rate is applied on 50 crore valuation to arrive at a 40 crore number. This becomes a debt of 0.5 crores. Here comes the valuation at which Lion Capital's seed investment of 3 crores gets converted into equity. So this means that Lion Capital will get 7.5% stake in Terraman. But what if Terraman fails to raise funding for the next 3 years? In this case, Lion Capital will penalize the founders by taking up significant stake in the company upwards of 40%. This is called fallback valuation. This is called fallback valuation. In summary, using convertible node structure, you determine valuation of your first funding round bases the valuation in the second round. Let us now understand what crowdfunding is. Crowdfunding is when individuals or startups raise small amounts of money from a large number of people through an online platform.


In summary, using convertible node structure, you determine valuation of your first funding round bases the valuation in the second round. Let us now understand what crowdfunding is. Crowdfunding is when individuals or startups raise small amounts of money from a large number of people through an online platform. Globally, there were over 6 million crowdfunding campaigns in 2020. This number is expected to grow to over 12 million by 2023. In India, the most prominent crowdfunding platforms are Indiegogo, Kickstarter, Keto, Catapult, Fundable, Wishberry and Fuel Dream.


Let us now understand what crowdfunding is. Crowdfunding is when individuals or startups raise small amounts of money from a large number of people through an online platform. Globally, there were over 6 million crowdfunding campaigns in 2020. This number is expected to grow to over 12 million by 2023. In India, the most prominent crowdfunding platforms are Indiegogo, Kickstarter, Keto, Catapult, Fundable, Wishberry and Fuel Dream. Here are some of the crowdfunding terminologies that you need to know. First is project. A project could refer to an idea, cause, initiative, product or service for which you are creating a crowdfunding campaign.


Globally, there were over 6 million crowdfunding campaigns in 2020. This number is expected to grow to over 12 million by 2023. In India, the most prominent crowdfunding platforms are Indiegogo, Kickstarter, Keto, Catapult, Fundable, Wishberry and Fuel Dream. Here are some of the crowdfunding terminologies that you need to know. First is project. A project could refer to an idea, cause, initiative, product or service for which you are creating a crowdfunding campaign. There is a notable significance associated with the word project. For raising money from angels or VCs, one needs to incorporate a private limited company. In crowdfunding, an entrepreneur can raise money for an idea without having incorporated a company beforehand.


Here are some of the crowdfunding terminologies that you need to know. First is project. A project could refer to an idea, cause, initiative, product or service for which you are creating a crowdfunding campaign. There is a notable significance associated with the word project. For raising money from angels or VCs, one needs to incorporate a private limited company. In crowdfunding, an entrepreneur can raise money for an idea without having incorporated a company beforehand. Next is a project goal. Project goal represents the amount of money you want to raise for your crowdfunding project.


There is a notable significance associated with the word project. For raising money from angels or VCs, one needs to incorporate a private limited company. In crowdfunding, an entrepreneur can raise money for an idea without having incorporated a company beforehand. Next is a project goal. Project goal represents the amount of money you want to raise for your crowdfunding project. Then comes funding level. Funding level denotes if a project has been successful in achieving its goal. There are three funding levels. Unsuccessful when project raises money less than their goal. Successful when project raises money equal to their goal and overfunded when project raises money greater than their goal. Last but not the least, we have backers. Backers are the people who invest in a crowdfunding project. Let's now deep dive into crowdfunding campaigns.


Next is a project goal. Project goal represents the amount of money you want to raise for your crowdfunding project. Then comes funding level. Funding level denotes if a project has been successful in achieving its goal. There are three funding levels. Unsuccessful when project raises money less than their goal. Successful when project raises money equal to their goal and overfunded when project raises money greater than their goal. Last but not the least, we have backers. Backers are the people who invest in a crowdfunding project. Let's now deep dive into crowdfunding campaigns. Crowdfunding campaigns can be of four types. Equity, rewards, debt, and donation. Equity crowdfunding is when the backers receive shares in return for their contribution to the project. Reward crowdfunding is when the backers are promised rewards for their contributions. Rewards can be priority access to the product when it goes live, pre-orders, goodies, or even recognitions. Debt crowdfunding is when backers receive interest payments for their contribution to the project.


Then comes funding level. Funding level denotes if a project has been successful in achieving its goal. There are three funding levels. Unsuccessful when project raises money less than their goal. Successful when project raises money equal to their goal and overfunded when project raises money greater than their goal. Last but not the least, we have backers. Backers are the people who invest in a crowdfunding project. Let's now deep dive into crowdfunding campaigns. Crowdfunding campaigns can be of four types. Equity, rewards, debt, and donation. Equity crowdfunding is when the backers receive shares in return for their contribution to the project. Reward crowdfunding is when the backers are promised rewards for their contributions. Rewards can be priority access to the product when it goes live, pre-orders, goodies, or even recognitions. Debt crowdfunding is when backers receive interest payments for their contribution to the project. Donation crowdfunding is charity. The backers become patrons of the project. High social media impact opt for this crowdfunding.


Crowdfunding campaigns can be of four types. Equity, rewards, debt, and donation. Equity crowdfunding is when the backers receive shares in return for their contribution to the project. Reward crowdfunding is when the backers are promised rewards for their contributions. Rewards can be priority access to the product when it goes live, pre-orders, goodies, or even recognitions. Debt crowdfunding is when backers receive interest payments for their contribution to the project. Donation crowdfunding is charity. The backers become patrons of the project. High social media impact opt for this crowdfunding. Among entrepreneurs, equity is reward funding and most popular. Note that in India, equity crowdfunding is not yet legal. In this course, we will explain reward crowdfunding through a case study of Squareoff crowdfunding campaign. Squareoff is an Indian startup that has raised 1.6 crore rupees from 799 backers on Kickstarter. The funding was used to develop the world's smartest chessboard. Squareoff's chessboard is AI-enabled and allows people to play remotely. One can also challenge the board's artificial intelligence to a game of chess. It is literally like the wizard chessboard from Harry Potter. Let's study Squareoff's crowdfunding campaign step by step. Step 1. Building a network A social media network is the foundation of every crowdfunding campaign. Crowdfunding platforms use social media to attract backers to your project. A big network leads to a wider reach, which in turn can lead to more backers and a large funding amount. Step 2. amphibians Step 3.APA Step 4.alternatives Step 5.auntments Step 6. bots Step 7.initers Step 8. specialized networks Step 8.itemspsedences


Donation crowdfunding is charity. The backers become patrons of the project. High social media impact opt for this crowdfunding. Among entrepreneurs, equity is reward funding and most popular. Note that in India, equity crowdfunding is not yet legal. In this course, we will explain reward crowdfunding through a case study of Squareoff crowdfunding campaign. Squareoff is an Indian startup that has raised 1.6 crore rupees from 799 backers on Kickstarter. The funding was used to develop the world's smartest chessboard. Squareoff's chessboard is AI-enabled and allows people to play remotely. One can also challenge the board's artificial intelligence to a game of chess. It is literally like the wizard chessboard from Harry Potter. Let's study Squareoff's crowdfunding campaign step by step. Step 1. Building a network A social media network is the foundation of every crowdfunding campaign. Crowdfunding platforms use social media to attract backers to your project. A big network leads to a wider reach, which in turn can lead to more backers and a large funding amount. Step 2. amphibians Step 3.APA Step 4.alternatives Step 5.auntments Step 6. bots Step 7.initers Step 8. specialized networks Step 8.itemspsedences A study on Kickstarter suggests that 10 Facebook friends gives a 9% chance of success. 100 Facebook friends gives a 20% chance of success. 1000 Facebook friends would mean a 40% chance of success.


Among entrepreneurs, equity is reward funding and most popular. Note that in India, equity crowdfunding is not yet legal. In this course, we will explain reward crowdfunding through a case study of Squareoff crowdfunding campaign. Squareoff is an Indian startup that has raised 1.6 crore rupees from 799 backers on Kickstarter. The funding was used to develop the world's smartest chessboard. Squareoff's chessboard is AI-enabled and allows people to play remotely. One can also challenge the board's artificial intelligence to a game of chess. It is literally like the wizard chessboard from Harry Potter. Let's study Squareoff's crowdfunding campaign step by step. Step 1. Building a network A social media network is the foundation of every crowdfunding campaign. Crowdfunding platforms use social media to attract backers to your project. A big network leads to a wider reach, which in turn can lead to more backers and a large funding amount. Step 2. amphibians Step 3.APA Step 4.alternatives Step 5.auntments Step 6. bots Step 7.initers Step 8. specialized networks Step 8.itemspsedences A study on Kickstarter suggests that 10 Facebook friends gives a 9% chance of success. 100 Facebook friends gives a 20% chance of success. 1000 Facebook friends would mean a 40% chance of success. Analysis of crowdfunding campaigns also suggest that 53% of email shares convert the backers making contributions, 12% of Facebook shares convert to backers, and 3% Twitter shares convert to backers.


A study on Kickstarter suggests that 10 Facebook friends gives a 9% chance of success. 100 Facebook friends gives a 20% chance of success. 1000 Facebook friends would mean a 40% chance of success. Analysis of crowdfunding campaigns also suggest that 53% of email shares convert the backers making contributions, 12% of Facebook shares convert to backers, and 3% Twitter shares convert to backers. Here's a peek into Square Off's Facebook page. It boasts over 7,000 followers.


Analysis of crowdfunding campaigns also suggest that 53% of email shares convert the backers making contributions, 12% of Facebook shares convert to backers, and 3% Twitter shares convert to backers. Here's a peek into Square Off's Facebook page. It boasts over 7,000 followers. Step 2. Do your reach. Research is critical for choosing the right crowdfunding platform for your project. Research helps set a realistic expectation of the funding amount that can be raised for a particular project. Crowdfunding platform guidelines are a good place to start your research.


Here's a peek into Square Off's Facebook page. It boasts over 7,000 followers. Step 2. Do your reach. Research is critical for choosing the right crowdfunding platform for your project. Research helps set a realistic expectation of the funding amount that can be raised for a particular project. Crowdfunding platform guidelines are a good place to start your research. Hello, welcome to Fund Enable's course on incubator support for startups. As an early stage entrepreneur, you're probably looking for office space, people for product development, mentors for guidance, and of course, funding. What if we tell you that there are over 500 incubators that provide you with all this and more? You heard it right. In this course, we will explain how a founder can benefit from incubation support. We will also help you identify the right incubator and guide you through the incubation application process.


Step 2. Do your reach. Research is critical for choosing the right crowdfunding platform for your project. Research helps set a realistic expectation of the funding amount that can be raised for a particular project. Crowdfunding platform guidelines are a good place to start your research. Hello, welcome to Fund Enable's course on incubator support for startups. As an early stage entrepreneur, you're probably looking for office space, people for product development, mentors for guidance, and of course, funding. What if we tell you that there are over 500 incubators that provide you with all this and more? You heard it right. In this course, we will explain how a founder can benefit from incubation support. We will also help you identify the right incubator and guide you through the incubation application process. One of the most important takeaways of this course is understanding how to get your first investment check from an incubator. So let's start.


Hello, welcome to Fund Enable's course on incubator support for startups. As an early stage entrepreneur, you're probably looking for office space, people for product development, mentors for guidance, and of course, funding. What if we tell you that there are over 500 incubators that provide you with all this and more? You heard it right. In this course, we will explain how a founder can benefit from incubation support. We will also help you identify the right incubator and guide you through the incubation application process. One of the most important takeaways of this course is understanding how to get your first investment check from an incubator. So let's start. We've just seen how incubators can support early-stage startups. As an entrepreneur, it is an absolute no-brainer to avail of incubation support.


One of the most important takeaways of this course is understanding how to get your first investment check from an incubator. So let's start. We've just seen how incubators can support early-stage startups. As an entrepreneur, it is an absolute no-brainer to avail of incubation support. The seed investment provided by an incubator is a cherry on the top. Becoming a part of a known incubation program adds credibility to your startup. This is exactly why more and more investors look at incubators as hunting grounds for potential investment opportunities. FundEnable's Incubator Matrix tool will help you in identifying the right incubator. While the FundEnable's Incubator Starter Pack will help you in preparing for the application. So let's get started on your incubation journey.


We've just seen how incubators can support early-stage startups. As an entrepreneur, it is an absolute no-brainer to avail of incubation support. The seed investment provided by an incubator is a cherry on the top. Becoming a part of a known incubation program adds credibility to your startup. This is exactly why more and more investors look at incubators as hunting grounds for potential investment opportunities. FundEnable's Incubator Matrix tool will help you in identifying the right incubator. While the FundEnable's Incubator Starter Pack will help you in preparing for the application. So let's get started on your incubation journey. leveraging incubators. So let's now understand how exactly can startup founders leverage support from incubators and how do we get access to the incubation ecosystem.


The seed investment provided by an incubator is a cherry on the top. Becoming a part of a known incubation program adds credibility to your startup. This is exactly why more and more investors look at incubators as hunting grounds for potential investment opportunities. FundEnable's Incubator Matrix tool will help you in identifying the right incubator. While the FundEnable's Incubator Starter Pack will help you in preparing for the application. So let's get started on your incubation journey. leveraging incubators. So let's now understand how exactly can startup founders leverage support from incubators and how do we get access to the incubation ecosystem. There are primary two government departments that have financially supported incubators across the country. One, Atal Innovation Mission, AIM, under Niti Ayog, and second, Department of Science and Technology, Government of India.


leveraging incubators. So let's now understand how exactly can startup founders leverage support from incubators and how do we get access to the incubation ecosystem. There are primary two government departments that have financially supported incubators across the country. One, Atal Innovation Mission, AIM, under Niti Ayog, and second, Department of Science and Technology, Government of India. Incubators supported by AIM are called Atal Incubation Centers or AICs and the ones set up under the umbrella of DST are called as Technology Business Incubators or TBIs. Both AICs and TBIs are mainly situated inside large universities or technology institutions.


There are primary two government departments that have financially supported incubators across the country. One, Atal Innovation Mission, AIM, under Niti Ayog, and second, Department of Science and Technology, Government of India. Incubators supported by AIM are called Atal Incubation Centers or AICs and the ones set up under the umbrella of DST are called as Technology Business Incubators or TBIs. Both AICs and TBIs are mainly situated inside large universities or technology institutions. Apart from the AICs and TBIs, most of the states in the country today have their own state-run programs and policies for supporting startups and incubators.


Incubators supported by AIM are called Atal Incubation Centers or AICs and the ones set up under the umbrella of DST are called as Technology Business Incubators or TBIs. Both AICs and TBIs are mainly situated inside large universities or technology institutions. Apart from the AICs and TBIs, most of the states in the country today have their own state-run programs and policies for supporting startups and incubators. As a part of the incubator tool, we've provided a database of more than 200 incubators which you can choose the right one for your business depending on the city and the sector.


Apart from the AICs and TBIs, most of the states in the country today have their own state-run programs and policies for supporting startups and incubators. As a part of the incubator tool, we've provided a database of more than 200 incubators which you can choose the right one for your business depending on the city and the sector. Now, what kind of support do these incubators provide to entrepreneurs? There are four key support areas where incubators play a pivotal role.


As a part of the incubator tool, we've provided a database of more than 200 incubators which you can choose the right one for your business depending on the city and the sector. Now, what kind of support do these incubators provide to entrepreneurs? There are four key support areas where incubators play a pivotal role. We call them the four P's that include place or the physical infrastructure, paisa which is the capital, people like mentors, service providers, team members and proficiency in the form of entrepreneurial training and development programs. Let us look at each of these support areas one by one.


Now, what kind of support do these incubators provide to entrepreneurs? There are four key support areas where incubators play a pivotal role. We call them the four P's that include place or the physical infrastructure, paisa which is the capital, people like mentors, service providers, team members and proficiency in the form of entrepreneurial training and development programs. Let us look at each of these support areas one by one. Let us start with the first P, which is place. One of the core offerings of the incubator is the infrastructure provided to the entrepreneur that includes co-working and office space, meeting rooms, breakout areas, etc. During the initial bootstrapping phase, costs such as office rental, electricity, internet, especially in cities, can be a big burden. By providing infrastructure support, incubators ease the financial burden of the entrepreneurs.


We call them the four P's that include place or the physical infrastructure, paisa which is the capital, people like mentors, service providers, team members and proficiency in the form of entrepreneurial training and development programs. Let us look at each of these support areas one by one. Let us start with the first P, which is place. One of the core offerings of the incubator is the infrastructure provided to the entrepreneur that includes co-working and office space, meeting rooms, breakout areas, etc. During the initial bootstrapping phase, costs such as office rental, electricity, internet, especially in cities, can be a big burden. By providing infrastructure support, incubators ease the financial burden of the entrepreneurs. The incubation spaces are known to be vibrant and full of high-energy startup founders and their teams.


Let us start with the first P, which is place. One of the core offerings of the incubator is the infrastructure provided to the entrepreneur that includes co-working and office space, meeting rooms, breakout areas, etc. During the initial bootstrapping phase, costs such as office rental, electricity, internet, especially in cities, can be a big burden. By providing infrastructure support, incubators ease the financial burden of the entrepreneurs. The incubation spaces are known to be vibrant and full of high-energy startup founders and their teams. Every incubator has decided or defined a thrust area or area of expertise. Some incubators might support fintech startups, while others would support agri-tech ventures. The incubator hosts technology equipment and labs required by startups in that particular area. Example, an incubator which has IoT as a thrust area will have all the necessary IoT equipment and softwares related to that domain. You can see some other thrust areas on your screen.


The incubation spaces are known to be vibrant and full of high-energy startup founders and their teams. Every incubator has decided or defined a thrust area or area of expertise. Some incubators might support fintech startups, while others would support agri-tech ventures. The incubator hosts technology equipment and labs required by startups in that particular area. Example, an incubator which has IoT as a thrust area will have all the necessary IoT equipment and softwares related to that domain. You can see some other thrust areas on your screen. A startup founder need not invest in the equipment and software required for product development. The incubator takes on that responsibility and creates common infra for startups. To summarize, the first P of incubation support, a founder gets office space and facilities like cafeteria, meeting rooms, printers, high-speed internet connection, etc.


Every incubator has decided or defined a thrust area or area of expertise. Some incubators might support fintech startups, while others would support agri-tech ventures. The incubator hosts technology equipment and labs required by startups in that particular area. Example, an incubator which has IoT as a thrust area will have all the necessary IoT equipment and softwares related to that domain. You can see some other thrust areas on your screen. A startup founder need not invest in the equipment and software required for product development. The incubator takes on that responsibility and creates common infra for startups. To summarize, the first P of incubation support, a founder gets office space and facilities like cafeteria, meeting rooms, printers, high-speed internet connection, etc. Apart from this, the technology infrastructure required by a startup for product development and testing is also available at the incubator. The first P, which is the place, plays a very critical role in cutting down both the capex as well as the operating costs for a startup during its initial years of operations. The next P is the most critical one, paisa. Incubators invest a small round of seed capital in select incubatees. Let's now shift our focus on understanding how a founder can raise a round of seed capital from incubators.


A startup founder need not invest in the equipment and software required for product development. The incubator takes on that responsibility and creates common infra for startups. To summarize, the first P of incubation support, a founder gets office space and facilities like cafeteria, meeting rooms, printers, high-speed internet connection, etc. Apart from this, the technology infrastructure required by a startup for product development and testing is also available at the incubator. The first P, which is the place, plays a very critical role in cutting down both the capex as well as the operating costs for a startup during its initial years of operations. The next P is the most critical one, paisa. Incubators invest a small round of seed capital in select incubatees. Let's now shift our focus on understanding how a founder can raise a round of seed capital from incubators. The primary scheme through which incubators can invest in startups is called NIDHI Seed Support System. Through NIDHI SSP, select incubators get anywhere between 5 crores to 10 crores to invest in startups. These incubators can invest up to 1 crore in select startups. The average ticket size ranges from 25 lakhs to 50 lakhs per startup. Let us now go through the process of raising money. Step 1 is to get incubated at a DST-funded TBI which has NIDHI SSP funding. As a part of this scheme, it is mandatory to be associated with an incubator at least for a period of 3 months before pitching to the selection committee. Once you become eligible for application for NIDHI SSP, you can create a presentation and pitch to a seed subcontractor. Step 2 is to get incubated at a NIDHI SSP funding. SSMC is an independent panel comprising of experts that take the final call on investment. Once the panel gives a go-ahead, the incubator conducts a small due diligence of your business where basic documents related to registration of the business and compliance, annual filings, etc. are checked.


Apart from this, the technology infrastructure required by a startup for product development and testing is also available at the incubator. The first P, which is the place, plays a very critical role in cutting down both the capex as well as the operating costs for a startup during its initial years of operations. The next P is the most critical one, paisa. Incubators invest a small round of seed capital in select incubatees. Let's now shift our focus on understanding how a founder can raise a round of seed capital from incubators. The primary scheme through which incubators can invest in startups is called NIDHI Seed Support System. Through NIDHI SSP, select incubators get anywhere between 5 crores to 10 crores to invest in startups. These incubators can invest up to 1 crore in select startups. The average ticket size ranges from 25 lakhs to 50 lakhs per startup. Let us now go through the process of raising money. Step 1 is to get incubated at a DST-funded TBI which has NIDHI SSP funding. As a part of this scheme, it is mandatory to be associated with an incubator at least for a period of 3 months before pitching to the selection committee. Once you become eligible for application for NIDHI SSP, you can create a presentation and pitch to a seed subcontractor. Step 2 is to get incubated at a NIDHI SSP funding. SSMC is an independent panel comprising of experts that take the final call on investment. Once the panel gives a go-ahead, the incubator conducts a small due diligence of your business where basic documents related to registration of the business and compliance, annual filings, etc. are checked. After this, the incubator and the founder agree on a valuation and sign the shareholder's agreement. This investment can also at times come in the form of soft loans. Once the agreement is signed, the money is transferred to the company's account based on certain pre-agreed milestones like number of customers, revenue, product development phase, etc. There are certain restrictions on uses of capital. You can use the investment only for the purpose displayed on your screen.


The primary scheme through which incubators can invest in startups is called NIDHI Seed Support System. Through NIDHI SSP, select incubators get anywhere between 5 crores to 10 crores to invest in startups. These incubators can invest up to 1 crore in select startups. The average ticket size ranges from 25 lakhs to 50 lakhs per startup. Let us now go through the process of raising money. Step 1 is to get incubated at a DST-funded TBI which has NIDHI SSP funding. As a part of this scheme, it is mandatory to be associated with an incubator at least for a period of 3 months before pitching to the selection committee. Once you become eligible for application for NIDHI SSP, you can create a presentation and pitch to a seed subcontractor. Step 2 is to get incubated at a NIDHI SSP funding. SSMC is an independent panel comprising of experts that take the final call on investment. Once the panel gives a go-ahead, the incubator conducts a small due diligence of your business where basic documents related to registration of the business and compliance, annual filings, etc. are checked. After this, the incubator and the founder agree on a valuation and sign the shareholder's agreement. This investment can also at times come in the form of soft loans. Once the agreement is signed, the money is transferred to the company's account based on certain pre-agreed milestones like number of customers, revenue, product development phase, etc. There are certain restrictions on uses of capital. You can use the investment only for the purpose displayed on your screen. Nidhi SSP funding becomes a stepping stone for founders to reach customer validation stage and raise money from VCs.


After this, the incubator and the founder agree on a valuation and sign the shareholder's agreement. This investment can also at times come in the form of soft loans. Once the agreement is signed, the money is transferred to the company's account based on certain pre-agreed milestones like number of customers, revenue, product development phase, etc. There are certain restrictions on uses of capital. You can use the investment only for the purpose displayed on your screen. Nidhi SSP funding becomes a stepping stone for founders to reach customer validation stage and raise money from VCs. There are several other smaller schemes such as Nidhi Prayas for supporting product innovations through a 10 lakh rupee grant and Nidhi EIR where an entrepreneur is given a sustainance stipend of up to 30,000 per month.


Nidhi SSP funding becomes a stepping stone for founders to reach customer validation stage and raise money from VCs. There are several other smaller schemes such as Nidhi Prayas for supporting product innovations through a 10 lakh rupee grant and Nidhi EIR where an entrepreneur is given a sustainance stipend of up to 30,000 per month. To summarize the second pillar, Paisa, VCs invest in businesses that have attained customer validation. The funding gap to develop the product, do test marketing, and hire the first set of team members can potentially come from the incubators. Most incubators have a strong network of angel investors and micro VCs. Once a startup gets incubated, this network can be leveraged to raise funding. Let's move on to the third pillar, which is people. As quoted by Ola founder Bhavesh Agarwal, During the initial days of your startup, raising capital is definitely tough. But attracting talent and getting the right people is a tougher task for the founders. As a startup founder, you cannot afford to be a startup founder. You cannot afford to give market-level salaries to your team members. The biggest challenge is how do I get access to quality people who can work with me?


There are several other smaller schemes such as Nidhi Prayas for supporting product innovations through a 10 lakh rupee grant and Nidhi EIR where an entrepreneur is given a sustainance stipend of up to 30,000 per month. To summarize the second pillar, Paisa, VCs invest in businesses that have attained customer validation. The funding gap to develop the product, do test marketing, and hire the first set of team members can potentially come from the incubators. Most incubators have a strong network of angel investors and micro VCs. Once a startup gets incubated, this network can be leveraged to raise funding. Let's move on to the third pillar, which is people. As quoted by Ola founder Bhavesh Agarwal, During the initial days of your startup, raising capital is definitely tough. But attracting talent and getting the right people is a tougher task for the founders. As a startup founder, you cannot afford to be a startup founder. You cannot afford to give market-level salaries to your team members. The biggest challenge is how do I get access to quality people who can work with me? This is where incubators are playing a key role. Most incubators are located within large universities and engineering colleges. These campuses are buzzing with enthusiastic and talented students. The incubators provide access to the student pool and they can be a part of your team.


To summarize the second pillar, Paisa, VCs invest in businesses that have attained customer validation. The funding gap to develop the product, do test marketing, and hire the first set of team members can potentially come from the incubators. Most incubators have a strong network of angel investors and micro VCs. Once a startup gets incubated, this network can be leveraged to raise funding. Let's move on to the third pillar, which is people. As quoted by Ola founder Bhavesh Agarwal, During the initial days of your startup, raising capital is definitely tough. But attracting talent and getting the right people is a tougher task for the founders. As a startup founder, you cannot afford to be a startup founder. You cannot afford to give market-level salaries to your team members. The biggest challenge is how do I get access to quality people who can work with me? This is where incubators are playing a key role. Most incubators are located within large universities and engineering colleges. These campuses are buzzing with enthusiastic and talented students. The incubators provide access to the student pool and they can be a part of your team. They can help you with the tech product development, digital marketing, ideation, etc. Many startups have effectively leveraged this talent student pool, especially during the initial stages of their fundraising journey.


This is where incubators are playing a key role. Most incubators are located within large universities and engineering colleges. These campuses are buzzing with enthusiastic and talented students. The incubators provide access to the student pool and they can be a part of your team. They can help you with the tech product development, digital marketing, ideation, etc. Many startups have effectively leveraged this talent student pool, especially during the initial stages of their fundraising journey. Many startup founders have effectively leveraged this talented student pool, especially during the initial stages of their startup funding journey.


They can help you with the tech product development, digital marketing, ideation, etc. Many startups have effectively leveraged this talent student pool, especially during the initial stages of their fundraising journey. Many startup founders have effectively leveraged this talented student pool, especially during the initial stages of their startup funding journey. Apart from access to talent, every incubator has a strong pool of mentors. These mentors come from varied expertise such as fundraising, marketing, tech development, compliance, etc. These mentors can become your sounding boards and advisors. In a nutshell, incubators give you access to domain-specific mentors that help you in solving business challenges.


Many startup founders have effectively leveraged this talented student pool, especially during the initial stages of their startup funding journey. Apart from access to talent, every incubator has a strong pool of mentors. These mentors come from varied expertise such as fundraising, marketing, tech development, compliance, etc. These mentors can become your sounding boards and advisors. In a nutshell, incubators give you access to domain-specific mentors that help you in solving business challenges. There are several common services that every business requires, such as CAs, web developers, digital marketing agencies, patent and IPR attorneys, etc. Most incubators empanel these service providers and have already negotiated prices for each of these services. Founders don't have to run around to find a CA or a CS. The incubator gives you access to all these resources. To summarize the third pillar, which is people, you get young smart interns to work with you, mentor and also get mentoring support by industry experts and empaneled service providers.


Apart from access to talent, every incubator has a strong pool of mentors. These mentors come from varied expertise such as fundraising, marketing, tech development, compliance, etc. These mentors can become your sounding boards and advisors. In a nutshell, incubators give you access to domain-specific mentors that help you in solving business challenges. There are several common services that every business requires, such as CAs, web developers, digital marketing agencies, patent and IPR attorneys, etc. Most incubators empanel these service providers and have already negotiated prices for each of these services. Founders don't have to run around to find a CA or a CS. The incubator gives you access to all these resources. To summarize the third pillar, which is people, you get young smart interns to work with you, mentor and also get mentoring support by industry experts and empaneled service providers. The final P is proficiency. Incubators keep conducting entrepreneurship development training programs around topics such as go-to-market, product development, finance, etc. More importantly, at any incubator, you are surrounded by many other founders who are sailing in the same boat. Peer learning is the biggest value addition that a founder gets by being at the incubator. The question now is, how do we get incubated? Here are four simple steps. Step 1 is to prepare a quick presentation that gives an overview of the business idea. We have provided you with a template that you can use to create a basic presentation for your incubation application. Step 2 is to go through the incubator database and select the right incubator and select the right incubator for your incubation application. Step 3 is to go through the incubator database and select the right incubator for your incubation application. You can also check if the incubator has a seed fund. You can then apply for incubation program through the online application form on the incubator website.


There are several common services that every business requires, such as CAs, web developers, digital marketing agencies, patent and IPR attorneys, etc. Most incubators empanel these service providers and have already negotiated prices for each of these services. Founders don't have to run around to find a CA or a CS. The incubator gives you access to all these resources. To summarize the third pillar, which is people, you get young smart interns to work with you, mentor and also get mentoring support by industry experts and empaneled service providers. The final P is proficiency. Incubators keep conducting entrepreneurship development training programs around topics such as go-to-market, product development, finance, etc. More importantly, at any incubator, you are surrounded by many other founders who are sailing in the same boat. Peer learning is the biggest value addition that a founder gets by being at the incubator. The question now is, how do we get incubated? Here are four simple steps. Step 1 is to prepare a quick presentation that gives an overview of the business idea. We have provided you with a template that you can use to create a basic presentation for your incubation application. Step 2 is to go through the incubator database and select the right incubator and select the right incubator for your incubation application. Step 3 is to go through the incubator database and select the right incubator for your incubation application. You can also check if the incubator has a seed fund. You can then apply for incubation program through the online application form on the incubator website. Finally, once you clear the evaluation process, you can be a part of the incubator and avail the support by signing an incubation agreement. An incubator supports startups over a period of 1-2 years. Against those services, the incubator takes a small equity stake in the venture that ranges anywhere between 1-5% as fees.


The final P is proficiency. Incubators keep conducting entrepreneurship development training programs around topics such as go-to-market, product development, finance, etc. More importantly, at any incubator, you are surrounded by many other founders who are sailing in the same boat. Peer learning is the biggest value addition that a founder gets by being at the incubator. The question now is, how do we get incubated? Here are four simple steps. Step 1 is to prepare a quick presentation that gives an overview of the business idea. We have provided you with a template that you can use to create a basic presentation for your incubation application. Step 2 is to go through the incubator database and select the right incubator and select the right incubator for your incubation application. Step 3 is to go through the incubator database and select the right incubator for your incubation application. You can also check if the incubator has a seed fund. You can then apply for incubation program through the online application form on the incubator website. Finally, once you clear the evaluation process, you can be a part of the incubator and avail the support by signing an incubation agreement. An incubator supports startups over a period of 1-2 years. Against those services, the incubator takes a small equity stake in the venture that ranges anywhere between 1-5% as fees. Some incubators also take very nominal incubation fees or discounted rentals. There are some incubators who provide all the services for free. The support that incubators have provided in the form of place, paisa, people and proficiency has translated into many startup success stories. Companies such as Citrus Pay, Work India, Donate Cart, etc. were once a part of accelerator and incubator programs.


Finally, once you clear the evaluation process, you can be a part of the incubator and avail the support by signing an incubation agreement. An incubator supports startups over a period of 1-2 years. Against those services, the incubator takes a small equity stake in the venture that ranges anywhere between 1-5% as fees. Some incubators also take very nominal incubation fees or discounted rentals. There are some incubators who provide all the services for free. The support that incubators have provided in the form of place, paisa, people and proficiency has translated into many startup success stories. Companies such as Citrus Pay, Work India, Donate Cart, etc. were once a part of accelerator and incubator programs. We have split the fundraising journey of a company in five key stages. Each stage requires funding to go to the next stage and has a specific set of investors. The key to crack the fundraising game is to first identify the stage of your business and accordingly reach out to investors who look at companies in your stage.


Some incubators also take very nominal incubation fees or discounted rentals. There are some incubators who provide all the services for free. The support that incubators have provided in the form of place, paisa, people and proficiency has translated into many startup success stories. Companies such as Citrus Pay, Work India, Donate Cart, etc. were once a part of accelerator and incubator programs. We have split the fundraising journey of a company in five key stages. Each stage requires funding to go to the next stage and has a specific set of investors. The key to crack the fundraising game is to first identify the stage of your business and accordingly reach out to investors who look at companies in your stage. The very first stage is the problem solution fitment stage. In this stage, the entrepreneur has identified a customer problem and has found a solution to address the problem. The product or the service is provided is not yet launched. The founder will need money to launch the product and test it in the market for viability. At this stage, the founder has to put in own capital. Raising money from outside investors at an idea stage is near to impossible.


We have split the fundraising journey of a company in five key stages. Each stage requires funding to go to the next stage and has a specific set of investors. The key to crack the fundraising game is to first identify the stage of your business and accordingly reach out to investors who look at companies in your stage. The very first stage is the problem solution fitment stage. In this stage, the entrepreneur has identified a customer problem and has found a solution to address the problem. The product or the service is provided is not yet launched. The founder will need money to launch the product and test it in the market for viability. At this stage, the founder has to put in own capital. Raising money from outside investors at an idea stage is near to impossible. While a few companies have raised large amounts of capital at the idea stage itself, you may consider them as outliers. The fact is that the probability of funding at the paper plan is very, very low. Stage 2 is the product development stage. An electric vehicle battery startup will require to pump in money for creation of prototype, test it and finally come up with the launch-ready product. The company has not yet launched the product and has no revenue. This is where founders will have to pump in more money in the business. At this stage, the founders can also raise a small friends and family round. Basically, reaching out to your own network and raising money against equity. At this stage, another option is to raise money from incubators who invest money for product. Product development, testing, hiring, etc. To know more, visit the incubator module. Typically, the funding amount at this stage is on an average 1 crore.


The very first stage is the problem solution fitment stage. In this stage, the entrepreneur has identified a customer problem and has found a solution to address the problem. The product or the service is provided is not yet launched. The founder will need money to launch the product and test it in the market for viability. At this stage, the founder has to put in own capital. Raising money from outside investors at an idea stage is near to impossible. While a few companies have raised large amounts of capital at the idea stage itself, you may consider them as outliers. The fact is that the probability of funding at the paper plan is very, very low. Stage 2 is the product development stage. An electric vehicle battery startup will require to pump in money for creation of prototype, test it and finally come up with the launch-ready product. The company has not yet launched the product and has no revenue. This is where founders will have to pump in more money in the business. At this stage, the founders can also raise a small friends and family round. Basically, reaching out to your own network and raising money against equity. At this stage, another option is to raise money from incubators who invest money for product. Product development, testing, hiring, etc. To know more, visit the incubator module. Typically, the funding amount at this stage is on an average 1 crore. The next stage is the proof of concept stage. In the proof of concept stage, the product has demonstrated customer validation. Basically, customers are buying your product and your product is actually solving their pain point. You now need a round of capital to go for an extended POC, which means improving the product, basis the customer feedback, and market it to more number of customers. At this stage, you can raise money from angel networks, micro VCs, and incubators. Here are a few names of active angel networks, micro VCs, and incubators who invest at the proof of concept stage. A more detailed list is available as a tool. The typical check size at this stage is one crore to five crore.


While a few companies have raised large amounts of capital at the idea stage itself, you may consider them as outliers. The fact is that the probability of funding at the paper plan is very, very low. Stage 2 is the product development stage. An electric vehicle battery startup will require to pump in money for creation of prototype, test it and finally come up with the launch-ready product. The company has not yet launched the product and has no revenue. This is where founders will have to pump in more money in the business. At this stage, the founders can also raise a small friends and family round. Basically, reaching out to your own network and raising money against equity. At this stage, another option is to raise money from incubators who invest money for product. Product development, testing, hiring, etc. To know more, visit the incubator module. Typically, the funding amount at this stage is on an average 1 crore. The next stage is the proof of concept stage. In the proof of concept stage, the product has demonstrated customer validation. Basically, customers are buying your product and your product is actually solving their pain point. You now need a round of capital to go for an extended POC, which means improving the product, basis the customer feedback, and market it to more number of customers. At this stage, you can raise money from angel networks, micro VCs, and incubators. Here are a few names of active angel networks, micro VCs, and incubators who invest at the proof of concept stage. A more detailed list is available as a tool. The typical check size at this stage is one crore to five crore. Stage 4 is the scale-up stage. Here, your product or service is well accepted by the customers. You have paying customers and repeat purchases. Now, you need money to expand your reach and attract a large number of customers. You are basically ready to scale up. This is where venture capital funds such as Sequoia, Matrix, Chirate, Bloom, etc. come in. VCs don't invest in the idea stage or at the product development stage. They come in when the product has been validated by the customers and the business is ready to scale.


The next stage is the proof of concept stage. In the proof of concept stage, the product has demonstrated customer validation. Basically, customers are buying your product and your product is actually solving their pain point. You now need a round of capital to go for an extended POC, which means improving the product, basis the customer feedback, and market it to more number of customers. At this stage, you can raise money from angel networks, micro VCs, and incubators. Here are a few names of active angel networks, micro VCs, and incubators who invest at the proof of concept stage. A more detailed list is available as a tool. The typical check size at this stage is one crore to five crore. Stage 4 is the scale-up stage. Here, your product or service is well accepted by the customers. You have paying customers and repeat purchases. Now, you need money to expand your reach and attract a large number of customers. You are basically ready to scale up. This is where venture capital funds such as Sequoia, Matrix, Chirate, Bloom, etc. come in. VCs don't invest in the idea stage or at the product development stage. They come in when the product has been validated by the customers and the business is ready to scale. The ticket size at this stage is upwards of a million dollars. The first VC round is called Series A round. The subsequent funding rounds are termed as Series B, Series C and so on. The company can go ahead and raise any number of funding rounds. Finally, Stage 5 is where the company is now well established and has significantly captured the market.


Stage 4 is the scale-up stage. Here, your product or service is well accepted by the customers. You have paying customers and repeat purchases. Now, you need money to expand your reach and attract a large number of customers. You are basically ready to scale up. This is where venture capital funds such as Sequoia, Matrix, Chirate, Bloom, etc. come in. VCs don't invest in the idea stage or at the product development stage. They come in when the product has been validated by the customers and the business is ready to scale. The ticket size at this stage is upwards of a million dollars. The first VC round is called Series A round. The subsequent funding rounds are termed as Series B, Series C and so on. The company can go ahead and raise any number of funding rounds. Finally, Stage 5 is where the company is now well established and has significantly captured the market. it now wants to further strengthen its leadership position and grow through an inorganic route like acquisition.


The ticket size at this stage is upwards of a million dollars. The first VC round is called Series A round. The subsequent funding rounds are termed as Series B, Series C and so on. The company can go ahead and raise any number of funding rounds. Finally, Stage 5 is where the company is now well established and has significantly captured the market. it now wants to further strengthen its leadership position and grow through an inorganic route like acquisition. The fundraise is mainly for this purpose. This is where large foreign VCs and private equity funds come to picture. Example, Baiju's acquired companies like White Hat Jr., Topper, Akash, etc. through the fund raised from large foreign funds such as Sofina, Silver Lake, BlackRock, General Atlantic, etc. As a first step, we should identify our stage and then map the relevant investors who back companies in that stage. We can further narrow down the investor list by focusing on sectors or themes. To understand this, let's look at this company, Under the Mango Tree.


it now wants to further strengthen its leadership position and grow through an inorganic route like acquisition. The fundraise is mainly for this purpose. This is where large foreign VCs and private equity funds come to picture. Example, Baiju's acquired companies like White Hat Jr., Topper, Akash, etc. through the fund raised from large foreign funds such as Sofina, Silver Lake, BlackRock, General Atlantic, etc. As a first step, we should identify our stage and then map the relevant investors who back companies in that stage. We can further narrow down the investor list by focusing on sectors or themes. To understand this, let's look at this company, Under the Mango Tree. Under the mango tree, creates opportunities for poor farmers and helps them in earning a livelihood.


The fundraise is mainly for this purpose. This is where large foreign VCs and private equity funds come to picture. Example, Baiju's acquired companies like White Hat Jr., Topper, Akash, etc. through the fund raised from large foreign funds such as Sofina, Silver Lake, BlackRock, General Atlantic, etc. As a first step, we should identify our stage and then map the relevant investors who back companies in that stage. We can further narrow down the investor list by focusing on sectors or themes. To understand this, let's look at this company, Under the Mango Tree. Under the mango tree, creates opportunities for poor farmers and helps them in earning a livelihood. The way UTMT helps farmers is by installing bee boxes on a farmer's field. Bees foster pollination and results in increase in the yield. In case of certain fruits, the yield increases by 15 to 20 percent. This means 20 percent more money for farmers just by having a bee box on the farm.


Under the mango tree, creates opportunities for poor farmers and helps them in earning a livelihood. The way UTMT helps farmers is by installing bee boxes on a farmer's field. Bees foster pollination and results in increase in the yield. In case of certain fruits, the yield increases by 15 to 20 percent. This means 20 percent more money for farmers just by having a bee box on the farm. The outcome of this activity is honey. UTMT buys honey from the farmers, so this gives additional revenue for farmers. The honey collected is then packaged and sold in the global markets. For UTMT, the target investors can be social impact funds. Investors that back startups, creating a livelihood impact. Rather than reaching out to all the investors, it makes sense to only reach out to the relevant social impact investors. Look at their average investment amount, their portfolio, and reach out to them. UTMT has followed this strategy to successfully raise money from Acumen, a large US-based social impact investor.


The way UTMT helps farmers is by installing bee boxes on a farmer's field. Bees foster pollination and results in increase in the yield. In case of certain fruits, the yield increases by 15 to 20 percent. This means 20 percent more money for farmers just by having a bee box on the farm. The outcome of this activity is honey. UTMT buys honey from the farmers, so this gives additional revenue for farmers. The honey collected is then packaged and sold in the global markets. For UTMT, the target investors can be social impact funds. Investors that back startups, creating a livelihood impact. Rather than reaching out to all the investors, it makes sense to only reach out to the relevant social impact investors. Look at their average investment amount, their portfolio, and reach out to them. UTMT has followed this strategy to successfully raise money from Acumen, a large US-based social impact investor. This is how you can focus on specific themes or sectors to create a target list of investors. Remember to include certain specific slides that might interest a particular investor. Example, your pitch to a social impact investor should include slides that talk about what impact are you creating on creation of livelihood and how do you measure the impact. Now that we have discussed how to shortlist investors, let's discuss how do we approach them. Here is a little secret about fundraising. Random cold emails to investors do not fetch you funding. Many founders write random cold emails to hundreds of investors.


The outcome of this activity is honey. UTMT buys honey from the farmers, so this gives additional revenue for farmers. The honey collected is then packaged and sold in the global markets. For UTMT, the target investors can be social impact funds. Investors that back startups, creating a livelihood impact. Rather than reaching out to all the investors, it makes sense to only reach out to the relevant social impact investors. Look at their average investment amount, their portfolio, and reach out to them. UTMT has followed this strategy to successfully raise money from Acumen, a large US-based social impact investor. This is how you can focus on specific themes or sectors to create a target list of investors. Remember to include certain specific slides that might interest a particular investor. Example, your pitch to a social impact investor should include slides that talk about what impact are you creating on creation of livelihood and how do you measure the impact. Now that we have discussed how to shortlist investors, let's discuss how do we approach them. Here is a little secret about fundraising. Random cold emails to investors do not fetch you funding. Many founders write random cold emails to hundreds of investors. This is called spray-and-pray approach or what we call as the false start. Remember, you're raising capital, you're not selling credit cards. Instead, what works is introduction to decision makers. Find someone who can introduce you to an investor who can vouch for you. Here, you need a mentor and the best mentor can be another founder who has successfully raised capital.


This is how you can focus on specific themes or sectors to create a target list of investors. Remember to include certain specific slides that might interest a particular investor. Example, your pitch to a social impact investor should include slides that talk about what impact are you creating on creation of livelihood and how do you measure the impact. Now that we have discussed how to shortlist investors, let's discuss how do we approach them. Here is a little secret about fundraising. Random cold emails to investors do not fetch you funding. Many founders write random cold emails to hundreds of investors. This is called spray-and-pray approach or what we call as the false start. Remember, you're raising capital, you're not selling credit cards. Instead, what works is introduction to decision makers. Find someone who can introduce you to an investor who can vouch for you. Here, you need a mentor and the best mentor can be another founder who has successfully raised capital. Connect with a few successful founders on LinkedIn and bounce off your ideas and take inputs. Look for someone who's one or two steps ahead of you. Get them on board as mentors and eventually request for investor introductions. Lot of founders rely on attending ticketed investor events to raise capital. In our experience, the best way to raise money is to create a real and intimate network of mentors, other founders, angel investors who can open doors and make introductions versus meeting investors at ticketed events.


This is called spray-and-pray approach or what we call as the false start. Remember, you're raising capital, you're not selling credit cards. Instead, what works is introduction to decision makers. Find someone who can introduce you to an investor who can vouch for you. Here, you need a mentor and the best mentor can be another founder who has successfully raised capital. Connect with a few successful founders on LinkedIn and bounce off your ideas and take inputs. Look for someone who's one or two steps ahead of you. Get them on board as mentors and eventually request for investor introductions. Lot of founders rely on attending ticketed investor events to raise capital. In our experience, the best way to raise money is to create a real and intimate network of mentors, other founders, angel investors who can open doors and make introductions versus meeting investors at ticketed events. To summarize, there are 5 stages of capital and each stage has a specific set of investors. Pause the video here. Check out this table that gives you a quick snapshot of the 5 stages.


Connect with a few successful founders on LinkedIn and bounce off your ideas and take inputs. Look for someone who's one or two steps ahead of you. Get them on board as mentors and eventually request for investor introductions. Lot of founders rely on attending ticketed investor events to raise capital. In our experience, the best way to raise money is to create a real and intimate network of mentors, other founders, angel investors who can open doors and make introductions versus meeting investors at ticketed events. To summarize, there are 5 stages of capital and each stage has a specific set of investors. Pause the video here. Check out this table that gives you a quick snapshot of the 5 stages. Over and above the stages and ticket size filter, add a sector and theme filter to come up with the final investor list. Reach out to these investors through introductions versus cold emails. Remember, creating a real network of mentors, founders, etc. who can open investment doors for you always works.


To summarize, there are 5 stages of capital and each stage has a specific set of investors. Pause the video here. Check out this table that gives you a quick snapshot of the 5 stages. Over and above the stages and ticket size filter, add a sector and theme filter to come up with the final investor list. Reach out to these investors through introductions versus cold emails. Remember, creating a real network of mentors, founders, etc. who can open investment doors for you always works. Step 3. Pre-camping prep Before you take your campaign live, you need to work out three things. Budget, logistics and your media plan.


Over and above the stages and ticket size filter, add a sector and theme filter to come up with the final investor list. Reach out to these investors through introductions versus cold emails. Remember, creating a real network of mentors, founders, etc. who can open investment doors for you always works. Step 3. Pre-camping prep Before you take your campaign live, you need to work out three things. Budget, logistics and your media plan. By crowdfunding budgets, we are referring to the cost of manufacturing or procuring rewards, cost of delivering rewards to backers, cost of campaign promotions, among others.


Step 3. Pre-camping prep Before you take your campaign live, you need to work out three things. Budget, logistics and your media plan. By crowdfunding budgets, we are referring to the cost of manufacturing or procuring rewards, cost of delivering rewards to backers, cost of campaign promotions, among others. Crowdfunding platforms typically charge a 5% to 10% commission on the total funds raised by the project.


By crowdfunding budgets, we are referring to the cost of manufacturing or procuring rewards, cost of delivering rewards to backers, cost of campaign promotions, among others. Crowdfunding platforms typically charge a 5% to 10% commission on the total funds raised by the project. The next critical thing that needs to be figured out in reward campaigns is logistics. Backers might be from a different country altogether. Do consider all the geographical and associated budget variations before the campaign. Then there is a media plan. Successful campaigns often have an elaborate media plan which includes both online and offline media.


Crowdfunding platforms typically charge a 5% to 10% commission on the total funds raised by the project. The next critical thing that needs to be figured out in reward campaigns is logistics. Backers might be from a different country altogether. Do consider all the geographical and associated budget variations before the campaign. Then there is a media plan. Successful campaigns often have an elaborate media plan which includes both online and offline media. Here is a look at the media coverage for Square Off campaigns. Through leading media publications such as CNBC, Economic Times, DNA and more, PR helped Square Off attract more backers. Step 4. This is initiating the crowdfunding campaign. A crowdfunding campaign has five elements. Video, Description, Team, Detailed Plan and Rewards. Let us look at these elements for Square Off Kickstarter campaign. The first is the video. The video primarily describes the product and often showcases the prototype for the crowdfunding project. It should be high quality video and not more than 5 minutes long. The next is the description. As you see, the Square Off Kickstarter campaign, the description details the prototype and its features. It effectively communicates the value proposition of the product to the backers. The next is the team.


The next critical thing that needs to be figured out in reward campaigns is logistics. Backers might be from a different country altogether. Do consider all the geographical and associated budget variations before the campaign. Then there is a media plan. Successful campaigns often have an elaborate media plan which includes both online and offline media. Here is a look at the media coverage for Square Off campaigns. Through leading media publications such as CNBC, Economic Times, DNA and more, PR helped Square Off attract more backers. Step 4. This is initiating the crowdfunding campaign. A crowdfunding campaign has five elements. Video, Description, Team, Detailed Plan and Rewards. Let us look at these elements for Square Off Kickstarter campaign. The first is the video. The video primarily describes the product and often showcases the prototype for the crowdfunding project. It should be high quality video and not more than 5 minutes long. The next is the description. As you see, the Square Off Kickstarter campaign, the description details the prototype and its features. It effectively communicates the value proposition of the product to the backers. The next is the team. Knowing the people behind the crowdfunding project is extremely important for backers. The logic is synonymous to venture capitalists getting to know the founders before investing. The credibility of the crowdfunding campaign increases by presenting the team behind the project.


Here is a look at the media coverage for Square Off campaigns. Through leading media publications such as CNBC, Economic Times, DNA and more, PR helped Square Off attract more backers. Step 4. This is initiating the crowdfunding campaign. A crowdfunding campaign has five elements. Video, Description, Team, Detailed Plan and Rewards. Let us look at these elements for Square Off Kickstarter campaign. The first is the video. The video primarily describes the product and often showcases the prototype for the crowdfunding project. It should be high quality video and not more than 5 minutes long. The next is the description. As you see, the Square Off Kickstarter campaign, the description details the prototype and its features. It effectively communicates the value proposition of the product to the backers. The next is the team. Knowing the people behind the crowdfunding project is extremely important for backers. The logic is synonymous to venture capitalists getting to know the founders before investing. The credibility of the crowdfunding campaign increases by presenting the team behind the project. Then comes the detailed plan. Why does the project need to be crowdfunded?


Knowing the people behind the crowdfunding project is extremely important for backers. The logic is synonymous to venture capitalists getting to know the founders before investing. The credibility of the crowdfunding campaign increases by presenting the team behind the project. Then comes the detailed plan. Why does the project need to be crowdfunded? Where is the money going to be used? How will the crowdfund shape in the future of the project? What is the future scope of the project? Answers to these questions are critical for crowdfunding success. Lastly, you have to set the reward levels. Create different reward levels basis contributors by the backers. As you can see in the case of Square Off, a 19-pound contribution backer gets a handcrafted rosewood knight as a reward, while a 159-pound contribution backer gets a kingdom chest set.


Then comes the detailed plan. Why does the project need to be crowdfunded? Where is the money going to be used? How will the crowdfund shape in the future of the project? What is the future scope of the project? Answers to these questions are critical for crowdfunding success. Lastly, you have to set the reward levels. Create different reward levels basis contributors by the backers. As you can see in the case of Square Off, a 19-pound contribution backer gets a handcrafted rosewood knight as a reward, while a 159-pound contribution backer gets a kingdom chest set. These five elements, video, description, team, detailed plan, and reward levels are the building blocks of crowdfunding campaign.


Where is the money going to be used? How will the crowdfund shape in the future of the project? What is the future scope of the project? Answers to these questions are critical for crowdfunding success. Lastly, you have to set the reward levels. Create different reward levels basis contributors by the backers. As you can see in the case of Square Off, a 19-pound contribution backer gets a handcrafted rosewood knight as a reward, while a 159-pound contribution backer gets a kingdom chest set. These five elements, video, description, team, detailed plan, and reward levels are the building blocks of crowdfunding campaign. There you go. You are all set to create your crowdfunding campaign. But before you go, allow us to share some exciting campaign statistics. Crowdfunding campaigns with videos earn 105% more than crowdfunding without videos.


These five elements, video, description, team, detailed plan, and reward levels are the building blocks of crowdfunding campaign. There you go. You are all set to create your crowdfunding campaign. But before you go, allow us to share some exciting campaign statistics. Crowdfunding campaigns with videos earn 105% more than crowdfunding without videos. Average word count for successful campaigns is between 300 to 500 words. Crowdfunding projects by teams raise more funding than projects by individuals. The majority of successful campaigns have about 9 reward levels. Funded projects typically have an average of 300 backers. Updating followers at least 8 times throughout the campaign is important. Campaigns with update raise 126% more funding than campaigns without updates. Average crowdfunding campaigns last for about 9 weeks.


There you go. You are all set to create your crowdfunding campaign. But before you go, allow us to share some exciting campaign statistics. Crowdfunding campaigns with videos earn 105% more than crowdfunding without videos. Average word count for successful campaigns is between 300 to 500 words. Crowdfunding projects by teams raise more funding than projects by individuals. The majority of successful campaigns have about 9 reward levels. Funded projects typically have an average of 300 backers. Updating followers at least 8 times throughout the campaign is important. Campaigns with update raise 126% more funding than campaigns without updates. Average crowdfunding campaigns last for about 9 weeks. We encourage you to study the crowdfunding campaigns of Square Off and some other companies like Leeko and Exploride.


Average word count for successful campaigns is between 300 to 500 words. Crowdfunding projects by teams raise more funding than projects by individuals. The majority of successful campaigns have about 9 reward levels. Funded projects typically have an average of 300 backers. Updating followers at least 8 times throughout the campaign is important. Campaigns with update raise 126% more funding than campaigns without updates. Average crowdfunding campaigns last for about 9 weeks. We encourage you to study the crowdfunding campaigns of Square Off and some other companies like Leeko and Exploride. Among entrepreneurs, equity and reward funding are most popular. Note that in India, crowdfunding is not legal through the equity route. In this course, we will explain reward crowdfunding through a case study. Square Off is an Indian startup that has raised 1.6 crores from 799 backers. Step 3 is the pre-campaign prep. Before you take the campaign live, you need to work out three things. Budget, logistics and your media plan.


We encourage you to study the crowdfunding campaigns of Square Off and some other companies like Leeko and Exploride. Among entrepreneurs, equity and reward funding are most popular. Note that in India, crowdfunding is not legal through the equity route. In this course, we will explain reward crowdfunding through a case study. Square Off is an Indian startup that has raised 1.6 crores from 799 backers. Step 3 is the pre-campaign prep. Before you take the campaign live, you need to work out three things. Budget, logistics and your media plan. Welcome to the course on understanding term sheet. An investment is guided by many terms and clauses. And all these terms and clauses are included in a document called the term sheet. Simply put, term sheet is a letter of intent that is typically extended by the investors. The purpose of the term sheet is to detail out all the rights, responsibilities, and obligations of both the founders and the investors. Term sheet is not legally binding and is open for negotiations and discussions. In this course, we will study all terms included in a typical angel and venture capital investment term sheet. We will also discuss how to negotiate the terms. In order to safeguard your interest as a founder. Let us begin right away.


Among entrepreneurs, equity and reward funding are most popular. Note that in India, crowdfunding is not legal through the equity route. In this course, we will explain reward crowdfunding through a case study. Square Off is an Indian startup that has raised 1.6 crores from 799 backers. Step 3 is the pre-campaign prep. Before you take the campaign live, you need to work out three things. Budget, logistics and your media plan. Welcome to the course on understanding term sheet. An investment is guided by many terms and clauses. And all these terms and clauses are included in a document called the term sheet. Simply put, term sheet is a letter of intent that is typically extended by the investors. The purpose of the term sheet is to detail out all the rights, responsibilities, and obligations of both the founders and the investors. Term sheet is not legally binding and is open for negotiations and discussions. In this course, we will study all terms included in a typical angel and venture capital investment term sheet. We will also discuss how to negotiate the terms. In order to safeguard your interest as a founder. Let us begin right away. Hold on. Term sheet is not legally binding. Once the term sheet is finalized and signed, lawyers convert it into a legally binding contract called the Shareholders Agreement or the SHA. Now, how does one make an SHA legally binding? Simple, by paying stamp duty and registering it. The investment money is transferred into the company's bank account only after the SHA is signed by the investors and the founders. We hope this course serves as a guide for understanding and negotiating term sheets. See you.


Welcome to the course on understanding term sheet. An investment is guided by many terms and clauses. And all these terms and clauses are included in a document called the term sheet. Simply put, term sheet is a letter of intent that is typically extended by the investors. The purpose of the term sheet is to detail out all the rights, responsibilities, and obligations of both the founders and the investors. Term sheet is not legally binding and is open for negotiations and discussions. In this course, we will study all terms included in a typical angel and venture capital investment term sheet. We will also discuss how to negotiate the terms. In order to safeguard your interest as a founder. Let us begin right away. Hold on. Term sheet is not legally binding. Once the term sheet is finalized and signed, lawyers convert it into a legally binding contract called the Shareholders Agreement or the SHA. Now, how does one make an SHA legally binding? Simple, by paying stamp duty and registering it. The investment money is transferred into the company's bank account only after the SHA is signed by the investors and the founders. We hope this course serves as a guide for understanding and negotiating term sheets. See you. Are you an incubator manager aspiring to take your career to the next level? If the answer is yes, then here's what you need to know.


Hold on. Term sheet is not legally binding. Once the term sheet is finalized and signed, lawyers convert it into a legally binding contract called the Shareholders Agreement or the SHA. Now, how does one make an SHA legally binding? Simple, by paying stamp duty and registering it. The investment money is transferred into the company's bank account only after the SHA is signed by the investors and the founders. We hope this course serves as a guide for understanding and negotiating term sheets. See you. Are you an incubator manager aspiring to take your career to the next level? If the answer is yes, then here's what you need to know. Today's incubation manager role has evolved. It is not just about providing infrastructure, training, events and mentoring anymore. It is about investing in startups and supporting startups in their fundraising journey.


Are you an incubator manager aspiring to take your career to the next level? If the answer is yes, then here's what you need to know. Today's incubation manager role has evolved. It is not just about providing infrastructure, training, events and mentoring anymore. It is about investing in startups and supporting startups in their fundraising journey. Incubation managers and CEOs are now expected to actively engage in startup investments through various seed funding schemes like SISF, NIDI SSP, and more.


Today's incubation manager role has evolved. It is not just about providing infrastructure, training, events and mentoring anymore. It is about investing in startups and supporting startups in their fundraising journey. Incubation managers and CEOs are now expected to actively engage in startup investments through various seed funding schemes like SISF, NIDI SSP, and more. One of the primary expectations from founders is that their incubation manager should guide them in securing the next round of funding.


Incubation managers and CEOs are now expected to actively engage in startup investments through various seed funding schemes like SISF, NIDI SSP, and more. One of the primary expectations from founders is that their incubation manager should guide them in securing the next round of funding. FundEnable has designed a unique certificate program on seed funding tailored specifically for incubation managers. This program equips you with everything you need to know about investing in a startup and helping them secure the capital that they need to thrive.


One of the primary expectations from founders is that their incubation manager should guide them in securing the next round of funding. FundEnable has designed a unique certificate program on seed funding tailored specifically for incubation managers. This program equips you with everything you need to know about investing in a startup and helping them secure the capital that they need to thrive. Our track record speaks for itself. We have successfully trained over 100 incubation managers and CEOs from across the country.


FundEnable has designed a unique certificate program on seed funding tailored specifically for incubation managers. This program equips you with everything you need to know about investing in a startup and helping them secure the capital that they need to thrive. Our track record speaks for itself. We have successfully trained over 100 incubation managers and CEOs from across the country. Many of our graduates have seamlessly transitioned into roles in venture capital funds and angel investment platforms, redefining their careers along the way. To learn more about our upcoming program, which is open to a select group of just 20 participants, reach out to us today. Join us in shaping the future of startup incubation and investment.


Our track record speaks for itself. We have successfully trained over 100 incubation managers and CEOs from across the country. Many of our graduates have seamlessly transitioned into roles in venture capital funds and angel investment platforms, redefining their careers along the way. To learn more about our upcoming program, which is open to a select group of just 20 participants, reach out to us today. Join us in shaping the future of startup incubation and investment. A venture capitalist pools in money from H&Is, corporates, pension funds, insurance companies, etc. into a fund. This money is then invested into various companies. The promise by a VC fund manager to these investors is that their returns will be delivered at the end of a 10-year life cycle. This means the life of the fund is 10 years. During the first 2-3 years, the fund is in the investing life cycle.


Many of our graduates have seamlessly transitioned into roles in venture capital funds and angel investment platforms, redefining their careers along the way. To learn more about our upcoming program, which is open to a select group of just 20 participants, reach out to us today. Join us in shaping the future of startup incubation and investment. A venture capitalist pools in money from H&Is, corporates, pension funds, insurance companies, etc. into a fund. This money is then invested into various companies. The promise by a VC fund manager to these investors is that their returns will be delivered at the end of a 10-year life cycle. This means the life of the fund is 10 years. During the first 2-3 years, the fund is in the investing life cycle. The next 5 years is where the fund nurtures the portfolio of investments and by the end of the 7th and the 8th year, the fund enters the exit phase where it starts selling the stake in the portfolio companies.


A venture capitalist pools in money from H&Is, corporates, pension funds, insurance companies, etc. into a fund. This money is then invested into various companies. The promise by a VC fund manager to these investors is that their returns will be delivered at the end of a 10-year life cycle. This means the life of the fund is 10 years. During the first 2-3 years, the fund is in the investing life cycle. The next 5 years is where the fund nurtures the portfolio of investments and by the end of the 7th and the 8th year, the fund enters the exit phase where it starts selling the stake in the portfolio companies. For an entrepreneur, the typical timeline for providing exit to a VC is 5 to 7 years after investment.


The next 5 years is where the fund nurtures the portfolio of investments and by the end of the 7th and the 8th year, the fund enters the exit phase where it starts selling the stake in the portfolio companies. For an entrepreneur, the typical timeline for providing exit to a VC is 5 to 7 years after investment. So how does an entrepreneur provide an exit to the investor? There are four primary ways. Secondary sale, acquisition, initial public offering and buyback. Let us look at each of these options.


For an entrepreneur, the typical timeline for providing exit to a VC is 5 to 7 years after investment. So how does an entrepreneur provide an exit to the investor? There are four primary ways. Secondary sale, acquisition, initial public offering and buyback. Let us look at each of these options. A secondary sale is when a new investor comes in and buys out the stake of an existing investor in the company.


So how does an entrepreneur provide an exit to the investor? There are four primary ways. Secondary sale, acquisition, initial public offering and buyback. Let us look at each of these options. A secondary sale is when a new investor comes in and buys out the stake of an existing investor in the company. The money pumped in by the new investor does not go into the company for expansion but goes to the investor who is exiting.


A secondary sale is when a new investor comes in and buys out the stake of an existing investor in the company. The money pumped in by the new investor does not go into the company for expansion but goes to the investor who is exiting. Typically, angels who invest at a very early stage sell their stake to Series B or Series C investors and exit. This is an example of a secondary sale.


The money pumped in by the new investor does not go into the company for expansion but goes to the investor who is exiting. Typically, angels who invest at a very early stage sell their stake to Series B or Series C investors and exit. This is an example of a secondary sale. a group of 38 angel investors had invested roughly around 3.5 crores in a logistics automation platform called Loginext. A few years later, the company raised 290 crores. VC round led by Tiger Global and Steadview Capital.


Typically, angels who invest at a very early stage sell their stake to Series B or Series C investors and exit. This is an example of a secondary sale. a group of 38 angel investors had invested roughly around 3.5 crores in a logistics automation platform called Loginext. A few years later, the company raised 290 crores. VC round led by Tiger Global and Steadview Capital. All the angels exited in this round and got almost a 16x return on their investment.


a group of 38 angel investors had invested roughly around 3.5 crores in a logistics automation platform called Loginext. A few years later, the company raised 290 crores. VC round led by Tiger Global and Steadview Capital. All the angels exited in this round and got almost a 16x return on their investment. Future Ventures had invested 6 crore rupees for a 22% stake in a women's fashion apparel brand called And.


All the angels exited in this round and got almost a 16x return on their investment. Future Ventures had invested 6 crore rupees for a 22% stake in a women's fashion apparel brand called And. Five years later, a PE fund called General Atlantic Partners bought the 22% stake from Future Ventures for 145 crores.


Future Ventures had invested 6 crore rupees for a 22% stake in a women's fashion apparel brand called And. Five years later, a PE fund called General Atlantic Partners bought the 22% stake from Future Ventures for 145 crores. These are a few examples of a secondary sale.


Five years later, a PE fund called General Atlantic Partners bought the 22% stake from Future Ventures for 145 crores. These are a few examples of a secondary sale. The next exit option is an acquisition, where 100% stake or majority stake in a business is bought by a large company for strategic reasons. Some of the reasons for taking over a business can be gaining a larger market share or entering a new business or geographic expansion. At times, acquiring talent can also be a key reason in acquisition.


These are a few examples of a secondary sale. The next exit option is an acquisition, where 100% stake or majority stake in a business is bought by a large company for strategic reasons. Some of the reasons for taking over a business can be gaining a larger market share or entering a new business or geographic expansion. At times, acquiring talent can also be a key reason in acquisition. In an acquisition, all the investors, including at times the founders, sell their stake to the acquirer.


The next exit option is an acquisition, where 100% stake or majority stake in a business is bought by a large company for strategic reasons. Some of the reasons for taking over a business can be gaining a larger market share or entering a new business or geographic expansion. At times, acquiring talent can also be a key reason in acquisition. In an acquisition, all the investors, including at times the founders, sell their stake to the acquirer. When Baiju's acquired White Hat Jr. for $400 million, VCs like Nexus, Omidyar, Owl Ventures, who had invested in White Hat Jr., got an exit. In 20 months, Nexus Ventures' investment of $4.7 million became $66 million. Omidyar's $3.17 million became $45 million and Owl Ventures' $2.8 million became $30 million.


In an acquisition, all the investors, including at times the founders, sell their stake to the acquirer. When Baiju's acquired White Hat Jr. for $400 million, VCs like Nexus, Omidyar, Owl Ventures, who had invested in White Hat Jr., got an exit. In 20 months, Nexus Ventures' investment of $4.7 million became $66 million. Omidyar's $3.17 million became $45 million and Owl Ventures' $2.8 million became $30 million. Another example of exit through acquisition is Flipkart. Walmart bought 77% stake in Flipkart for a whooping $17 billion. All the major investors like SoftBank, Tiger Global, Axel Partners exited by selling their stake to Walmart. The founder, Sachin Bansal, also exited by selling his 5.5% stake for $1 billion.