Tag: investors

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Startup

Myths Around Startups: Here Are 3 Popular Myths Which Every Entrepreneur Should Ignore

Startup
Startup (Photo Credits: Pixabay)

Mumbai, December 7: No doubt, starting a company is not an easy task, but with the right strategy, the correct focus, good funding, one stands a chance to succeed. There is a lot of glamour associated with startup and many have the notion that it is all about young, bubbly, and vibrant talent.

There are certain myths about startups and we try to bust them for you.

You need huge funding to start a startup: This another big myth. According to experts, in order to burst the myth, one should adapt to the practice of bootstrapping, which allows maintaining full control of the startup strategies, avoiding time delays and energy spent to attract investors and retaining maximum equity.

It is extremely difficult for startups to compete with big established companies: You need to identify the advantage which you have as compared to a biggie in the market. For e.g. Being a startup, you’re less likely to experience the bureaucratic drama that is involved in the whole process. This not only allows you to be more flexible but gives you a lot of creative freedom.

Yes, a startup can’t compete with a corporate big shot in terms of the budget, but you can identify your niche and focus only on that. Your spending will be more focussed.

Ideas Make a Startup: Yes, a good idea will help you to stand out. But, it is no the only guarantee for a good startup. There are numerous e.g.s like Facebook, Google who didn’t come into the market with an innovative idea. These ideas were tested before as well. However, the reason why they became successful was because they built a great product.

 

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Startup

Shell India Plans to Engage With At least 30 Startups Every Year From 2020 Through Its E4 Programme, to Help Them Scale Their Business

Startup
Startup (Photo Credits: Pixabay)

Bangalore, November 9: Shell India is planning to engage with 25-30 startups every year from 2022 onwards through its E4 Programme. The objective is to help them scale their business.

According to a PTI report, Shell, under E4 Programme, incubates and supports startups via various modules of linking talent, technology, capital and know-how to accelerate India’s transition to a sustainable energy future. Over the last 3 years, the company has been able to engage with 30 startups and supported them with investments and mentoring at Shell campus located in India.

Shell E4 Programme, general manager, James Unterreiner as quoted in the PTI report said, “We have 30 start-ups now that have come through the E4 program and we’re in the process of adding 10 to 12 more that’ll start the program in January. We’re planning on ramping the program to 25 to 30 annually. So, the first couple of years have been a slow ramp to get there and now we’re at that run rate where we expect 25 to 30 annually.”

Shell has been working hard to ensure that energy startups become commercially viable, where they can engage with investors and corporates.

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Finance Startup

5 Important Points To Prepare For Your Investor Meetings

Waiting to start an entrepreneurial journey, but freaking out with thoughts about how to conceptualize your business idea? Or have one great idea, but no funds to execute it? Then let us tell you that your journey has just started. Today, investors are looking forward to enduring some great business ideas and invest in those business ideas that can elevate to the next level of success.

The hard part is to pitch your idea to an investor and explain you are right concept without going in the wrong direction. Your months of research work and strategy can go wrong if you are not prepared well for the funding process. In this pandemic, many startups have gained investors in their business, and you must be thinking about what homework you need to have one good investor on board.

Here are a few tips that can help you to generate valuable partnerships or investor for your first meeting-

Make a Pitch Deck

A pitch deck is an important starting point, and your pitch deck categorically asserts the significant aspects of your business idea and product or service. Professionals always like documents and data to run through while talking about your idea. Well, the data explained, and the number shows the hard work you’ve done. It also gives the impression of preparation for the meeting.

Use graphs and pictures to present your strategies. Ensure that your slides are sharp and accurate. It also assists you in not missing valuable points to share.

Describe Your Story

Story narration plays a significant factor while making a pitch to an investor. It’s a human tendency to love stories that inspire them. A well-narrated story always brings an instant connection with a potential investor and helps you to indulge in your idea.

Make sure you display your passion and willing to risk your project. The more passion and commitment you have toward your dream, the more beneficial it will be to you.

The Team You Bring on Table

Most investors don’t generally put money just on the idea you share, but they also put money on the team that will run the concept. Therefore, when you meet, remember to introduce or discuss the team and its Essential Skills. Ensure that they can help you carry the idea to the heights you plan for them.

The main purpose here is to show that you are willing to make an effort to reach the goal you have done.

Industry Updates

For growing and staying in the industry, you should know about the competition also. To creak the opportunity, prepare the list before meeting with the investor. Then showcase how you are different from them. Also, work on a roadmap project to deal with the competition. 

Make a Financial Model

Make sure you have this discussion as your investor will be investing money in your idea until you share your plan on how you can utilize your money. Prepare the forecast of the financial model for the next 5 years. Try to give a clear picture you can provide to the investor.

Make sure, to be honest with your investors. Every investor aims to look for sincerity in the people they are backing up. We suggest you do your homework before meeting them as it will give you a good possibility of raising funds from investors.

 

Categories
Startup

Startups That Have Independent Directors On Their Board Benefit From the Mediation Role Played by Them During VC-Founder Rift: Study

Startup (Representational Image Only, Photo Credits: NeedPix.com)

New Delhi, October 5: Startups that have independent directors on their board benefit from the mediation role played by them, according to a working paper by Michael Ewens and Nadya Malenko for the US National Bureau of Economic Research. However, they are not legally obliged to have independent directors on their boards.

According to a Livemint report, studying a sample of 7,200 VC-backed startups in the US, the researchers reported that at the first financing, a startup board has three members, with most of the power vested in the entrepreneurs. However, in the successive rounds of financing, the power and control shift from the entrepreneur to the VC.

The authors found out that the board of an average startup has two seats held by VCs, 1.7 by entrepreneurs, and 0.8 by independent directors. As the investors take up the role of monitoring and advisory in startups, the role of the independent directors is more of a tie-breaker in case of disagreement.

However, the authors have also highlighted that this mediating role played by the independent director may not produce the most optimal outcome. It further observed that the bargaining power of VCs in comparison to entrepreneurs in startups has reduced over the course of time due to the deregulation of private equity markets and the entry of non-traditional investors.