Wondering how to get investors for startups in India? You’ve come to the right spot. In this guide, you will find proven guidelines on how some of the top companies have used to attract and keep investors.
As you can already guess, cash flow is the lifeblood of any business. Without money, you have no means to buy anything. The best way to ensure that you have money is to raise it from investors. While finding investors is relatively easy, the way you pitch your business and how you pitch to investors are often the biggest barriers.
Here are some of the proven strategies used by notable investors to attract investors for their startups:
1). Ask Family or Friends for Capital
The most direct way to get investors for your startup in India is to ask family and friends for capital.
Well, they will probably not think you are serious or may even think that you are crazy, but if you can prove to them that you are serious and you have a great business idea that can change the world, they will be more than happy to invest.
The best thing about asking your family or friends to invest in your company is that it is very cost-effective. You don’t need to shell out thousands of dollars on an investor presentation and you don’t need to hire a marketing team.
Another thing is that they know you and have known you for a long time. They will be more likely to invest in something that they are familiar with.
2). Apply for a Small Business Administration Loan in India
The second most common way to get investors for a startup in India is to apply for a Small Business Administration Loan. In India, the Small Business Administration Loan is known as the Mudra Yojana Loan.
It involves a small business loan that is given to small businesses and has a limit of Rs. 500000. The loan is usually given to businesses like start-ups, IT companies, and SMEs (Small Medium Enterprises).
The beauty of this way to fund your startup is that this is a loan that is a low-interest loan and can be obtained within a shorter period of time.
3). Pitch Private Investors
The third most common way to get investors for a startup in India is to pitch private investors.
There are two types of private investors in India;
a). Angel Investors
These are investors that have already invested in startups, have contacts in the startup industry, and are willing to invest in a startup without being an owner of the company.
b). Venture Capitalists
These are investors that have money and are willing to invest in a startup, they are willing to take significant risks, and are usually looking for a high return on their investment.
They usually run a fund that invests in startups. These funds usually invest in startups that are either growing really fast or have really big potential for growth.
4). Online Fundraising Platforms
The fourth most common way to get investors for a startup in India is to pitch investors via an online fundraising platform. These platforms are generally not a lot different from crowdfunding platforms in the western world.
Here are some of the best;
The benefit of using a fundraising platform in India is that it simplifies the whole process for you. There are no registration fees and no upfront costs. You just need to upload a white paper and you are good to go.
5). Apply to Accelerators/Incubators
The fifth most common way to get investors for a startup in India is to apply to be part of an incubator or an accelerator in India.
Startup incubators are a great place to be to help get your startup off the ground. These incubators provide resources, mentorship, and connections to help you grow.
They can also help you get funding and access to the infrastructure you need to start and scale your company in India.
Here are some of the best incubators for startups in India.