Investor and Startup FAQ's

Why are you a very early stage investor? 

Thousands of young firms who haven't yet expanded sufficiently to obtain institutional financing, we feel, are missing out. Traditional VC seed investment milestones are migrating further down the growth curve, leaving a financing gap at the initial phases, where the biggest financial returns are achieved.

We set out to redirect the energy that would otherwise be wasted on fundraising into growth, resulting in instant value for both entrepreneurs and investors.

In brief, we want to give innovators early access to funds so they may test their hypothesis, find early signs of product-market fit, and gain significant traction to secure the next round of funding.

In a Potential Investment, what do you look for ?

Here's an example of what motivates us to make an investment:

• Market is large and increasing, and it's best if it's untapped.

• An impressive group of domain specialists who are committed to their objective and show tenacity and inventiveness.

• Profit margins from recurring or predictable revenue are strong and defensible.

• Advantages of Customer Acquisition

• Scalability and capital efficiency

• Strong network effects and virality embedded in the system

• There are several possible exit routes.

• BONUS: Increasing the rate of growth

Which stage of the Startup do you invest in ?

We invest into rounds that come before the Series A. (Pre-Seed and Seed, effectively).

Unless we've already dealt with the founder, we rarely invest on a cocktail napkin, and we prefer to be the first institutional money in the door. We'd like to see a product and some early indicators that it's on the right track.

How do Angel Investors Differ from a VC ?

Both Venture Capital Funds and Angel Investors invest on the basis of taking a stake in a business, but there are some differences

Angel investors supplement the money of family and friends by investing in early stage businesses or start-ups where they perceive a possibility for the company to expand. VC funds invest in companies at later phases of development, beyond proof of concept, and at higher levels than angel investors. Even early-stage venture capitalists start at USD 1.5 million, although angel investors can invest as little as $10,000 and as much as $1 million.

Investors in venture funds direct them to invest in specified regions or sectors. Angel investors are interested in a wide range of industries and would consider investing in any field where some of its members have experience.

In the Forum, what are my rights as an investor?

Being an individual investor, you’re free to sell or purchase shares as per your own discretion anytime.

How is the valuation of a startup determined?

A startup's valuation is decided by the entrepreneur in consultation with the primary investor. Investors frequently utilise values from previously funded businesses as industry benchmarks. An entrepreneur should prepare for valuation discussions by showing their evaluation of worth, having an estimate with a range of variation, and having the freedom to negotiate.