Every Startup needs to raise funds for scaling up fast. If you don’t raise funds, then your competitor might raise funds, scale up and give you steep competition. Therefore, you should keep on raising funds and scaling up your startup.
Step by Step Process of Raising Funds
- Preparation: You should ensure that your startup meets the minimum revenue requirements as mentioned in the funding guidelines. Make sure that you have the following documents ready:
- Pitch Deck: You should have the pitch deck prepared as per the guidelines of pitch deck by StartupLanes. This is the most important document that you will show to the investors for raising funds.
- Financial Projections: Investors wants to know about your plans for spending the funding that you are going to raise. In this the most important aspect is that customer acquisition and revenues along with your profitability. Your exact amount of funding required will come from this document, therefore this cannot be ignored. Do not mention a random amount of funding required in your pitch deck, get the exact number from your financial projections sheet.
- Valuation: You have to know the value of your company because investors will invest in your company for a share of your company. Investors will get to know about the equity that they will get for their investment from this document. This is an extremely important document. Most of the founders make this mistake of getting a an inappropriate valuation, only get the “Fairshare Valuation” that is propounded and developed by Shishir Gupta, who is the Founder and CEO of StartupLanes.
- Check: Most of the pitch decks, financial projections and valuations that are made by the founder themselves or by their designers are not appropriate. To be honest, more than 98% of these documents are wrong. We don’t explain you the mistakes because generally founders don’t understand and they start arguing with our team. That’s why it is important for you to understand that these documents are most important and therefore it is recommended that you get these documents made by the experts of StartupLanes. We get all three documents done for US$ 1100 or INR 75000, from our gold members. We don’t profit from these documents, our margin is only 10% out of which we pay 50% to our team.
- Application: Apply for funding by filling the form at StartupLanes website. Please don’t send the pitch deck and other documents through email or WhatsApp. We only accept applications through the application process because the applications are received in our Application Tracking and Customer Management Software.
- Connect with SL Team: The Community team of StartupLanes will receive the application in their dashboard and then they will call you after evaluating the pitch deck and other documents that you have submitted through the cloud drive link. Please take the contact number of the person who contacts you and save it in your phone as you will need it many times further. Please setup a date and time for the mock pitching to SL team so that they can evaluate the proposal.
- Mock Pitching: The SL team will setup a zoom call for your mock pitching. You should pitch to our team in the same way you are going to pitch to the investors. This will ensure that our team finds out the challenges and then they can suggest you improvements.
- Approval: After the mock pitching, our team will inform you about approval of your application. We generally don’t reject any application, however in case your application is rejected, you can raise a complain to get it reviewed for one more (final) time.
- Mandate: After the approval, our team will share the legal contract with you, that is called mandate. You have to review it by yourself or get it reviewed by your lawyer, sign it and send across. Please note that this mandate is non-negotiable and nothing will be changed in it, except factual errors and typing mistakes. Sign it and get it signed by the SL team, keep the signed copy with you and send across to our team as well.
- Legal Fee: There is a legal fee of US $25 or INR 1000+GST to be paid towards the legal charges of the mandate. Please pay the charges and inform our team. This is only for the people looking to raise the funds through Angel Investors, not applicable for the VC funding.
- Research Report: The Research Team of StartupLanes will prepare a research report on the basis of data provided by you to present a bird’s eye view to the investors. This research report makes the decision making process of the investors, easy and fast. Our team may ask for additional information while preparing this research report, please help them, this is for the benefit of all. We don’t charge any fee for the research report from anyone, therefore you don’t have to pay for it.
- Teaser: Make a one page teaser describing problem, solution, revenue, industry, customers, product, competitors, funding required, milestones, and valuation in 1-2 lines for each and send across to us. Do not mention your name, your company name, brand name or any kind of contact details in the teaser. We send this teaser to the investors in our network to pickup their initial interest.
- Promo Video: Our team will give you a basic format to record your video mentioning important aspects about your startup and explaining why should investors invest their money in your startup. This should be a 3 to 5 minutes video. We will do the editing, you just have to record and send to us. We won’t charge you for the video editing and sound editing.
- Demo Day: Our team will give you a date for the exclusive demo day. It is applicable for startups looking to raise Angel funding from the angel investors in our network. This is an exclusive event for one startup where investors will hear the pitching from you. No other startup will be present in the event, it is an exclusive event for you.
- Investor Outreach: Our team sends the Research Report, Promo Video and Teaser to the Angel Investors in our network in case of Angel Funding. The interested investors will express their interest to receive the meeting link for the exclusive demo day. On the other hand, in case of Venture Capital Funding, we outreach the suitable VCs one by one and our team will identify the interested VCs for the personal connect.
- Personal Connect: This is applicable to VC Funding only, where our team connects the Founders with the VCs on a personal call or meeting through video conferencing.
- Commitment: Our team connects with each investor personally to take their commitment of the amount that they wish to invest. We will inform you about the total investment committed.
- Due-Diligence: The investors will do the due-diligence to the facts and figures mentioned by you.
- Term Sheet: The term sheet will be signed by you and the investors to put all the terms and conditions of the investment in to the legal agreement.
- Share Holder’s Agreement: This is an agreement to define the terms and conditions for the startup and the investors who will take the share allotment.
- Fund Transfer: Investors will transfer the funds directly to the bank account of the startup.
- Success Fee: You have to transfer the success fee to StartupLanes for the services as per the mandate.
- No Objection: After the payment of success fee, you will receive a no-objection email from StartupLanes.
- Announcement: Now, you can announce the funding in the media.
- Share Allotment: You have to allot the shares to the investors within the time limits.
- Next Round: Start preparing for the next round of funding through StartupLanes.
Please feel free to reach out to our team for any questions.