Funding is the key to keeping your startup in the fight. Whether your Series A is floundering or your Series D is flourishing, a little bit of capital can go a long way in making your startup dreams a reality. However, with the shifting landscape of funding in the startup world, companies have to look at alternative means of acquiring capital to stay afloat. And the last thing you want to do is miss out on the newest trends.
The Start-up funding era
A lot has been happening in the world of start-ups. The Government has increased its focus on more start-ups because the number of jobs they are creating is immense, which cannot be done by either of private or public sector. Driven by an extremely young think-tank, these startups have created new opportunities for the people and the investors as well. The total amount of investment in the startups was a glittering $ 9 billion in the yesteryear and the numbers are surely on a rise.
Shifting investment approach
We are living a time where selling the idea is always on the prior note rather than the product. “Normally people used to see what assets a company is creating before investing, Brick and Mortar. But things are transiting from old age to new age economy, new knowledge economy, which is based out of idea and not the product. We are giving non collateral loans on such ideas. Moreover, the government has given credit guarantee for the same,” says Ramesh Dharmaji, CGM-SIDBI, New Delhi.
Adding more on the shifting trends, Alok Mittal, CEO, Indifi Technologies, says, “The expectations of Angels and VCs is to invest into high risk high return projects assuming a high mortality rate. Knowing the fact that 25 out of 35 projects will go bust, the expectation from the rest 10 is to make up with all the losses and then provide some returns, which will not be possible in the traditional, risk free investment plans.”
Embracing the shepreneurs
With the ongoing shift in the biz world, women are more aggressively taking the wheel in their own hands. In addition, the investors are launching schemes to help the startups created by women. “We have some special schemes for women entrepreneurs only, in which we are giving concessional rate of interest and we are also giving relaxations in collateral loans of up to RS 50 lacs to women entrepreneurs only,” says Rakesh Kashyap, AGM & Regional Head, Canara Bank.