angel investors, Business Administration, Business Models, Business Networking, Business Owner, Business Plans, Business Relationships, Business Strategy, Business-To-Business, IPR Companies, Digital Agencies, Ecommer, Crowdfunding, Liscence and exchange of technology, Non-Banking Financial Companies, SME Technology, tech corp legal, venture capital financing

Series A Financing

 

What are we aiming at GOLDILOCK Economy for Our Business Startup which will take into account the challenge I would like to UNDERPIN. We want best of everything. Knowledge is always outside our comfort zone. Unicorn business model takes into account economic growth of the country as the startup provide job opportunities, low inflation rate, more employment to the GEN X population who are very intelligent in many ways. The holistic view of the contextual experience is increase in asset price of the intellectual property created by the individual creative mind.

There are peaks and troughs in fund-raising journey of a startup business. Startups go through multiple rounds of financing to raise investment in order to cover business expenses based on escalation of company’s valuation.

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In case of mobile app innovation what is the frequency of usage of the user spending time on the mobile application.

After the business has shown some of a track record, and when company is generating some revenue (though it might not be net profit), Series A funding is a critical stage in optimization of product and services and for the growth in customer base. The ultimate goal of series A round of financing is to cover up the expenses involved in carrying out additional market research and finalization of the product or service that the company is introducing in the market.

The company is still in the product development stage so the risk involved in the series A round of funding is the highest and Series A funding is commonly offered in the form of preferred stock and may have anti-dilution provisions in case more financing is given, in the form of common stock or preferred stock, in the future.

In an increasingly competitive marketplace, many startups are unable to impress investors to get Series-A funding because of multiple reasons like the venture failed to demonstrate their ability to grow; the team failed to build the skill-sets and competitiveness; lack of Intellectual property that can give the company an unfair advantage; lack of market validation or a poor product or service.

Preparation is the key to everything. Startups should align their thoughts and conversations with the investors perspective for getting follow-up meetings after the initial interaction with the investors. The following things should be kept in the mind:

  1. To excel in the game of series A financing, a company should be well-versed with the investment criteria of an investor. Different investors have criteria of investing in a venture.Some may give more weightage to market sentiments while some other may give to the team.  
  2. Have a sound knowledge of the investment scenario of different sectors. This will help you understand the investor’s view of your sector and you will be in a better position to seek investment for your venture.
  3. There should be synergy in your venture and the portfolio companies of the investor. This will help the investor understand the relevance of investment in your venture.
  4. Be clear on what you seek from the investor beyond the money and how they may add value to your venture.
  5. Eight BEST Funding Opportunities

Crowdfunding                                                                                                                       

The digital era has opened your world to more than a market. Through the crowdfunding sites, you can pitch your business to strangers and ask for funding. At the crowdfunding platform, lay out your business idea and give a detailed description of what the business is, your profit making plans, how much money you expect to raise, and why you need to raise funds via the platform.Companies that raise funds via crowdfunding platforms have been able to increase their profitability since the platform benefits entrepreneurs in two ways; through the funds raised and through the marketing that products receive. Since crowdsourcing is a competitive funding option, your business must be rock solid and appealing to customers and investors.

Using venture capitalists

Venture capitalists are professionals who invest in companies with high potential for growth. To get the attention of a venture capitalist, your business model should show potential for rapid growth and the ability to disrupt the market. 

Venture capitalists only invest in startups with extremely high potential for big returns on investments. As a result, venture capitalists evaluate the sustainability and the scalability of any business they consider investing in. To get a venture capitalist interested, you should have a disruptive product as well as a big market that will result in faster and bigger returns on investments.

You should also note that venture capitalists offer mentorship and their expertise once they sign up with you. Therefore, if you believe that your business is competitive and able to attract a venture capitalist’s interest, ask for their funding. You should be willing to give up a percentage of your company.

Angel investors

Did you know that Google, Alibaba, and Yahoo got investments from angel investors? Angel investors are individuals who invest in potentially profitable businesses with their surplus disposable income. Before investing in your company, the angel investors will screen your business to ascertain its worth and the potential for growth.

Just like venture capitalists, angel investors invest in a stake of your company but they offer mentorship. Their propensity for high risk businesses is what determines if your business is taken up or not.

Winning business competitions

While repaying your debt consolidation loan, you should take advantage of your business’ potential by getting into contests. Most of these competitions require business plans and the entrepreneur with the best idea wins a big sum of money. The funds won should be injected into the business for better investment returns.

Most of these competitions are broadcast in the media. Besides winning the reward money, you will benefit from free marketing. People remember the winning business and this gives your business a great head start.

Funding from business incubators and accelerators

There are numerous funding opportunities in the market. However, to know about them and to benefit from them, you should be open-minded and aggressive. Search online or ask around for business incubators and accelerators. Business incubators provide shelter tools, network, and training just as parents do to their children while accelerators help businesses take the giant leap. To benefit, you must be willing to commit time, develop good networks and learn from your mentors, investors, and fellow entrepreneurs.

Government funding programs

The government supports local entrepreneurs. To reduce unemployment and to encourage self-dependency, the government has instituted departments to aid in sharing funds to the most innovative businesses. Businesses ideas that promise societal growth besides high profits always get a higher priority.

Online peer to peer lenders

Besides angel investors, there are groups or individuals online who often provide affordable loans to persons in search of affordable and unsecured loans. Though you will be servicing the debt consolidation loan, the loans from peer to peer lenders are affordable and if you are confident that you can repay the two loans comfortably, then you should take it up.

Bootstrapping

This is also called self-funding. It is an effective funding option when you are starting out and when you have savings. Besides personal savings, you can also ask your friends and family for funding. Though resources are stretched under bootstrapping, your business will be attractive to investors later on. Knowing that you build a business by yourself inspires confidence.

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