Investors inspect several aspects of a business before making an investment decision. These aspects include the revenue making potential of the business, the market size, customer segments, milestones achieved, and so on. Founders must evaluate their business and find out exactly how fund-able their business is before approaching investors. This is the process of finding the Fund-Ability Quotient of Your Business. This FundEnable Tool comprises of a course on enhancing fund-ability of your business in accordance with the latest Venture Capital norms along with a Fund-Ability Matrix template allowing you to evaluate your business from a Venture Capitalist perspective.
Learn the current trends in venture capital landscape and understand what it takes to raise capital for your business
Understand the factors that influence investment decisions and evaluate the fund-ability quotient of your business
Access the Fund-Ability Matrix template to evaluate your business fund-ability quotient on parameters like value proposition, market size, sector & segment, etc
A collection of business fundraising essential resources. It contains 12 online courses providing a 360º understanding of the fundraising process along with 8 templates that are 100% customizable according to business needs.
a) Founder's Why? - Why did the founder start this venture? What is the purpose and driving passion?
b) Execution abilities of the founding team
c) Customer focus
d) Ability to pivot and experiment
e) Relevant past experience and educational background "
Is the Restaurant business scalable?
Pure play restaurant business that involves huge CAPEX in ambiance, kitchen, etc., is not scalable. However several models of restaurant businesses are funded by investors such as - Franchising which involves less investment from the brand's side or satellite kitchen that requires far less CAPEX as compared to full-service restaurants.
Can we raise money only on the basis of a business plan?
Probability is very low. While there are examples of founders raising money without proof of concept - consider them as outliers. Work towards customer validation. Most investors don't take founders with paper plans seriously. "Come back when you have traction" will be the common answer that you will hear from investors.
I am working for a multi-national company. I have a business idea. I am planning to start it and leave my job if and when an investor invests in my venture. Is this possible?
The simple answer to this is NO. What is your skin in the game? Why would the investor invest in your venture if you are not even willing to commit to it full-time?
My business focusses on first getting a large number of users for free. I am yet to figure out a monetization strategy? Will I be able to raise money?
If it was pre-2015 then possibly yes. Today, investors are focusing on immediate revenue and positive unit economics.
I am scared to talk about my idea with potential investors. What if they steal my idea?
Investors invest in businesses - they don't intend to operate businesses. This is a chicken and egg situation. Unless you disclose details about your business you will not be able to gauge investor interest. It is more about execution than about the idea.
I run family-owned manufacturing set up. I need Venture Capital money to buy land and set up a factory. Will someone invest?
VCs prefer asset-light businesses because they are more scalable. Besides this VCs invest money for customer acquisition, manpower, technology development, etc. - these are items on your Profit and Loss Statement. Assets such as land, factory, etc. are items on the Balance Sheet. Balance Sheet funding is typically done by banks. So as a general thumb rule - VCs fund P&Ls while Banks fund Balance Sheets. Try going to a bank and ask for money for Facebook advertising - you will not get it. Similarily the chances of you getting money from a VC for a factory and land are low.
What if I need investment but I don't know how am I going to provide an exit to the investor?
You need to think through this. Why would an investor invest in your business otherwise? Having some clarity around this question is important.
I am developing a product that can potentially be used by every Indian. My market size is huge. Will investors invest?
On a base of 1.2 billion people, every opportunity looks huge. However, you can't possibly reach out to everyone. Calculating the addressable market is important. As a startup with limited resources, you need to focus on a particular customer segment and start with the lowest hanging fruit. Initially while determining the market size, stick to the customer segment which has the highest propensity of using your product or service. Focus on what can be realistically achieved.
Terms & Conditions
Kindly download the entire T&C document by clicking here T&C.pdf
It is strongly recommended that users read the T&C document while purchasing the FundEnable Toolkit.
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