It is always better to keep your capitalization table clean with fewer investors especially individuals. Ideally, 50 lakhs should be raised maximum from 4-5 investors. VCs coming in further rounds like capitalization tables to be clean. Aim to go for fewer investors with larger cheques rather than a long list of inventors as a part of your company.

You might have heard of India Angel Network (IAN), Mumbai Angels, Lead Angels, etc. Individual angel investors are a part of these groups. These entities curate startup deals and take it to their network of angels. On successful funding, they charge a success fee to the company for raising money from their network of angels. Typically one person from the group who understands the sector and the opportunity takes the lead and other individuals piggyback on the analysis and decision of the lead.

There is no thumb rule. It depends on the various parameters such as the business model, the market, the investor who is buying stake, etc. Typically first-round investors aim for a significant majority that can go up to 33% ownership in the company.

Think big but start small. Proof of Concept is extremely important before raising a round of funding. There might be investors who can invest money in your venture in tranches - but raising INR 25 crores in one go at the product development stage looks difficult unless you have a record of giving profitable exit to investors in your previous venture.

Change the approach. Pitching at competitions with a 5-minute timeslot happens only at events. You have to develop your network and do face to face meetings where you take investors through your business. In real life, investors put money not the Shark Tank way but by spending time with founders in understanding their businesses. So our suggestion is to neglect competitions and events - raise money the real way!