FUNDING YOUR STARTUP A guide to finding finance

Contents ■Before Your Search Begins■Finding Finance ■Bootstrapping ■Crowdfunding■Family and Friends ■Traditional Lenders ■Angel Investors ■Venture Capitalists

■ Incubators ■Accelerators■How Extentia Can Help

Before Your Search Begins■You need:

■High quality business plan ■Confidence in your idea■To be prepared to network■Extensive market research■The perfect pitch deck

Finding Finance ■Support for startups has

never been stronger ■There are many options

for financing your idea ■Each method has its own

benefits and drawbacks■ It is important to do your

research and choose the perfect option for you and your startup

Bootstrapping ■Some startups begin with

minimal financial resources

■ Instead of relying on external input, they use personal savings

■This can involve working part-time or building up debt

■Can be slow and risky

Crowdfunding ■ Involves finding funding

from a large number of people

■This is often via the internet or subscriptions

■You are encouraged to perfect your business plan before showing to your huge audience

Crowdfunding Example: Kickstarter ■The world’s largest funding

platform for creative projects

■Encourages thousands of amazing startups

■Startups upload their ideas■Users choose whether to

donate

Family and Friends ■38% of startups receive some funding from friends and

family ■This encourages other forms of funding and

demonstrates confidence

Traditional Lenders: Bank Loans■Bank loans need an understanding of your business and

the risks associated with it■ It is important to have:

■High credit score■Steady revenue ■Confidence

■The government can also offer support■The Startup India initiative is helping startups find

funding via the MUNDRA bank endeavor

Traditional Lenders: Bridge Loan■Short-term loans can provide what you need until

another method of funding is secured■Large fees tend to be associated with bridge loans ■Annual rates can be more than 10%■Quick and easy■Very high risk

Angel Investors ■An angel investor is an affluent

individual■The investor provides capital

for a startup business■Convertible debt or ownership

equity are commonly offered in exchange for the funding

Venture Capitalists ■Venture Capitalists (VCs) invest their capital in startups■Startups need to demonstrate potential for long-term

growth ■The illiquidity makes such investments risky ■Real potential for impressive returns ■Returns depend on success of startup■VCs can often influence decisions

Incubators ■ Incubators help startups to solve common problems faced

■Workspace■Funding ■Mentoring ■Training

■ Incubators tend to focus on a particular market■Working together is key!

Accelerators ■Accelerators work over a set time frame and are very

selective ■Provide everything necessary:

■Mentors■Finance ■Networking ■ Interns■ Infrastructure

■They accelerate you into success!

Accelerator Example: Amplifi■Extentia has recently partnered with Amplifi■The accelerator is the first of its kind in India■Amplifi offers a rigorous program for B2B (Business to

Business) SaaS (Software as a Service) startups■Provides everything crucial for success

How Extentia Can Help ■Our dedicated Startup Consulting Team are passionate

about providing the knowledge startups need for success

■To find out more please visit us here

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