Results of a brief survey conducted among entrepreneurs in India. The subject was about the early stage funding scenario in India. Entrepreneurs responded to several Questions about their experiences in raising funds, challenges faced and future expectations

1. Startup Funding Scenario in India
A Study on Startups
By
Verdure Venture Consulting

2. About Verdure
Boutique Investment Consulting with focus on
Start up Mentoring
Early stage Fund raising
Clients include:

3. Study Objective
Verdure Venture Consulting conducted this
study to
understand the startup funding environment in
India better
effectively address various challenges faced by
startups in fund raising
provide tailor made fund raising services

4. KEY FINDINGS

5. Success Rate in Fund raising
15% of the total responding startups had raised funding
successfully. (Way above the global success rate of 1%)

6. Funding amount
Average amount raised in
•Round 1 was between INR 25 L to 50 L
•Round 2 was between INR 1 & 2 Crores

7. Fundraising timeframes
•Round 1 funding took typically between 3 to 6 months
•Round 2 fund raising took typically from 3 to 9 months

8. Other miscellaneous findings
Round 1 of investments was mostly by family &
friends and Angel investors while round 2 was mostly
done by angel investors
Startups had to pitch to an average of 5-10 investors
before they got invested
67% of them stated that multiple rounds of pitching
helped improve their business model and success
rate with investors

9. VALUATIONS, NEGOTIATIONS AND
DUE DILIGENCE

10. Negotiations – No of Rounds

11. Further Negotiations
* Specific clauses in the agreement or legal structure

12. Valuations
•80% of startups expressed happiness at the valuation
they received
•20% thought that they could have done better.

13. Valuation Methodology
40% of the respondents said that the valuation was based
on haggling between parties and reasons other than
scientific methods like projections and stok preferences

14. Due Diligence – Time taken
Due diligence took less than a month in 54% of cases
23% of startups responded that the process took over 3
months time

15. Due Diligence - Paperwork

16. CHALLENGES AND EXPECTATIONS
ABOUT FUNDRAISING

17. Challenges experienced in
fundraising

18. Future Expectations – Funding
amount

19. Fundraising timeframes

20. Factors delaying the Fundraising
process

21. Thank You
For Details Contact
saiswaroopa@verdure.in
Usha.krishnan@verdure.in