Beginners Start-Up & Venture Capital Guide

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Most of us interested in building start-up. Now a days there are lot of opportunities to grow. Few of them are as follow:

Start-up Village

If you are from Kerala the best option is startup village (http://startupvillage.in/). You can register startup village for Rs. 2000 (in for of DD). It features live sessions, promotional event, mentoring and venture capital to members. Here follows a few programs conducted by startup village:
  • Angle Hack (March – June) – This event focus on creating new tools and software (from idea level). Winners will get a chance enter AngelHack’s “HACKcelerator” & showcase work in Silicon Valley. For more information visit http://hackathon.io
  • Google I/O (May) – Program focus on showcasing Google products and apis to developer. Only invited members can attend. Interested members can apply for invitation. There will be free hardware give of in every session.
Startup village also coordinate programs such as KMA-NASCOM IT Award (December), StartEdu 3 (June - September), Vizon (August) and Vodafone App Star (Oct - March). They can help you to raise fund for your business. They have tie up with venture funds such as Axilor, TURN8, Microsoft Venture and Ycontibute.

Few days before startup village introduced Fintech Accelerator in association with Federal Bank, which provide iPhone 6, iPad mini, Macbook Air, Nexus 5, Kindle, 1 TB Hard disk, Arduino Starter Kit, besides a company registration deed and a bank account. They also have association with HFDC to provide credit card.


Google Lauchpad & Microsoft bigspark

Google lauchpad & Microsoft bigspark is an excellent opportunity to grow. For more details go https://developers.google.com/startups/ or https://www.microsoft.com/bizspark/ .

Young Entrepreneurship Submit

Kerala government in association with KSIDC brings out a huge opportunity for youth. Yes (Young Entrepreneurship Submit) commonly occur in between June and September of each year. Selection criteria for YES are : Original idea, Business viability, Social impact of idea and Easy of implementation. Winners of YES will be awarded 1 lakh as first price, 50k as second price, 30k as third price and consolidation price of 25k (7 nos). You can find more information from http://yeskerala.org

Venture funds

If you are looking for venture capital here some tips for you:
  • Develop your product and prove that users are actively using your product, you are ready for capital. The best time to bring capital is that, at least from your perspective, is to get as far as you can without raising capital.

  • Before you go venture funds you should prepared with short presentation. Please always explain what your company does in as few sentences as possible (good, short).

  • Before going for presentation you should complete incorporating your company registration, getting your domain name set up, mobile app (if required), creating logo, business cards, getting your website going, creating a product prototype, and finding your first customers (A working product that should be available on market). You should have well prepared with business plan, scope report, market, budget, future details, presentation, proven revenue and user statics . In short you should have a great idea and proven business model.

  • If possible find a good mentor. Please remember someone who can run a billion dollar corporation does not necessarily mean they’re a good adviser.

  • Your startup should have very strong management, a good team. Each and every person on your team should have a well-defined role in your startup.

  • Cultivate relationships with people who can get you introductions (such as past entrepreneurs) to the proper partner at the proper VC. You can develop suitable relations from social media. If no such connections available go for email (only the last options. In most case it won’t work). Take your time and do this right, because you won't get a second shot at getting in the door.

  • Before you try to contact one VC you should go through their website, press release and do enough research on previous investments to make sure weather VC intent invest in your segment. Some VC only invest in particular segment such as medical tourism.

  • Once venture capital company ready to invest don't ask a VC to sign an NDA (No discloser agreement) and do your best to avoid raising too much money. Most of the successful startup raises money in different stages. There may be seed stage (Also known as First or Series A stage. Max half a million dollars can be raised in this stage.), followed by Series B (It is 2nd or 3rd round. Also known as growth stage venture capital. Rise between $5 and $25 million) and more stages. If you’re looking for less than $5000 never try venture capital, instead raise required capital for credit cards, your personal savings, friends and family. [Some website that may help you to find capital are : Kickstarter, Indiegogo, http://angellist.comhttp://fundable.comhttp://wefunded.com and GetCapital.org]

  • Never ask what do venture capitalists want in an investment? If you have to ask, then you (and your business) are probably not a good candidate. And—just in case you don’t recognize it—that’s a reference to an old joke: When someone asks a Ferrari salesman how much it costs, the salesman answers, “If you have to ask, you can’t afford it.”

  • What is the real valuation - Know what convertible preferred stock is. Know that you don’t go to a venture investor and give him some high valuation number. You’re a startup with no prior experience in the venture world. That’s just a reality.”

Please always remember I’m doing is a game, I want to win. For VC to invest you should give up some portion of your company shares. Normally for seed round it will 12% and 6% for futre rounds of investments. With investment amounts that high, the stakes are correspondingly high. So venture capital, these days, is usually involved in the later rounds, not in the seed rounds.

In a survey it has been found only 20% of investment made by VC are successful. So VC are investing your startup with a belief that your startup will compensate their 80% loss and make profit to them when they exit, which is what happens when they sell their share of ownership for real money.

For more information on venture capital click download.