Early funding option for startups can usually be limited. Though there are ways like bootstrapping, crowdfunding or receiving help from family members and friends, startups need angel investors or VCs to scale up fast. Investors want to become the primary backers of the next game-changing venture. There are many things that investors look for in a prospective investee. The merits of an idea, market need and size, vision for execution of these ideas, are just some of these. These aspects should definitely be in your pitch deck! Continue reading “What Investors look for in a Startup?”
Due Diligence for Startups
With the startup community growing stronger than ever, there has been a rise in the number of angel investors, venture capital investors, and private equity firms who are willing to invest in such startups. Among the various factors evaluated in the due diligence report, adherence to legal compliance is one of the essential points to be taken care of. Continue reading “Due Diligence for Startups”
Hacking the term sheet
Amidst the big rush for Funding, Funding, and more Funding, most founders get carried away by the “hulla” in the market rather than trying to understand the real implications. One such example is at the time of initial negotiation with the Investors.
The Term Sheet is the first document that sets the terms of the deal and breaks the ice of negotiation between the promoters and the investors. However, most of the founders do not understand the meaning of the primary clauses in the Term Sheet, which might put them in a disadvantageous position. Continue reading “Hacking the term sheet”