SMART PLANET

Seed Funding is something which most of the sought after VC‘s shy off as they do not want to invest in a concept which is made up of only ideas with no real proof.

The VC community basically looks for ideas which have been implemented or pilot tested for a while and they see a definite growth in the area the start up is working and potential of the team to grow big. They also look out for an exit route after a certain number of years.

These big time VC’s usually are not interested in early stage start ups as they do not want to risk their captial in such raw ideas.

This potential is tapped in countries like US, UK, China by small VC companies.The same trend is now getting replicated in India with the advent of small VC firms.

One such frim called “Grow VC” (www.growvc.com) is using the “crowd sourcing” platform to attract potential investors.They can invest upto a USD 1 Mn into an early stage start up company. They not only provide funding services but also provide tools for starts ups to connect and also for the investors to connect.

Another company operating in the seed funding area is i2 india(www.i2indiaventures.com), they invest in technology start ups and work with some of the leading educational institutes.

India needs more of such companies to fund early stage start ups so that brilliant ideas do not die because of lack of funding available.Ahem !

How To Raise Funds For Business

First question that comes into the minds of people who want to set up any business is, “How to raise capital to start a business?” For many, the question is like a nightmare. According to experts who have been working in the practical field of business, obtaining or securing appropriate fund is key to launch or expand a productive business. Raising funds is the most important of all the factors that combine to make any business venture successful. It is an established fact that money makes money.

If you go through business magazines and newspapers, you would be awed to know that there is abundance of capital meant for starting business ventures. The prospects of obtaining capital are brighter for initiating online entrepreneurial ventures. You would hardly believe that there are more funds available for business start-ups than practical business ideas.

Ways To Raise Funds

If you are convinced that there is no dearth of funds for starting a business venture, you must be curious to know the ways to raise funds. Once you are determined to raise funds for your business, you would get several sources. Some of the important sources to get funds include:

• Personal savings
• Family members and friends
• Venture capitalists
• Angel investors

Personal Savings

In your campaign to raise funds for your entrepreneurial venture you should look for any prospective financing option at your home. If you consider this option viable, you must knock at the door of your personal savings as well as your assets. These may turn out to be your easiest sources to raise business funds. It is more discerning to use the option at hand than to borrow money from outside.

Family Members And Friends

This source of raising funds from family members and friends is also a convenient and practical source. However, this source is generally utilized when the requirement for business fund is small. Family members and friends can show lots of patience in case your business takes longer than usual time to settle. You may also offer them to share the profit.

Venture Capitalists

Venture capitalists are known to invest in business professionally. They can readily invest in any new business without any track record. But they lend in exchange of very high returns and for a short period only.

Angel Investors

Angel investors are not organized investment firms. They offer funds privately. Their main interest is to make more money on their invested capital than investing in traditional markets like public traded stocks or mutual funds.

Fund Raising Companies

You would find several fundraising companies that have been offering traditional and unique fundraising products and ideas. You can choose one from them easily on the internet. But before you approach any one of them, make sure that you have gone through the review of that company.

Top 10 Venture Capital Firms in India

We bring you a list of Top 10Venture Capital fund companies in India who are registered by SEBI, off course there are hundred’s of VC firms but according to our survey these are some our best funds.

1. Aavishkaar India Micro Venture Capital Fund
2. DHFL Venture Capital Fund
3. Kotak India Venture Fund I
4. Felicitas Venture Capital Trust
5. iLabs Venture Capital Fund
6. India Enterprise Development Fund
7. India Infoline Venture capital Fund
8. Industrial Venture Capital Limited
9. Intelligroup Venture Fund
10. 10.  Kerala Venture Capital Fund

Famous Venture Capitalist: Smart planet is showcasing Four famous venture capital investors.  These are well-known venture capitalists who have distinguished themselves through great investments, and very interesting personalities, and they shown a deep commitment to the entrepreneurial journey.

But if you are not ant insider then its very tough to divide the major players in this area. We are showing some of the best and biggest names that you can expect to encounter.

Tom Perkin

In the field of venture capital fund it would be incomplete with out the name of TOM PERKIN, conversation about venture capital would be incomplete without mention of Tom Perkins, who is star or you can say he is a legend. HE made a numerous success with major companies like Applied Materials, Compaq, Corning Glass, Genentech, Philips Electronics, and Tandem Computers.

John Doerr

John Doerr is another venture capital legend. His major contribution in the field of high-tech companies, He earned a status of the go-to guy when it comes to building businesses in computer-related fields. His major contribution to companies likes of Netscape, Sun Microsystems, Lotus, Amazon, and Intuit.

Bob Kagle

If you are not known to this person then you must have heard about his biggest deal: eBay, which is one deal who can place in the top. He also started a new revolution in the e commerce industry.

Henry McCance

He started a successful venture in software industry, his major risks that become world famous are Tellabs and Epsilon.

How To Raise Capital To Fund Your Business: Some Important Guidelines

Main function of venture capital funding is to supply effectual capital for the growth of any company or business. Venture capital funding is managed by venture capitalists who act as professional investors. These capitalists administrate a large pool of money which is collected from various sources. Venture capital funding is unique source of providing fund to any potential business that has high chances of growth but does not possess any track record. Venture capital investors invest money at this type of business for a short period on the terms of getting high returns.

It is widely believed that venture capital funding does not match the funding requirement of all types of businesses. Therefore, it is recommended that people who want to get support of venture capital funding to grow their business must have clear knowledge of all the criteria practiced by venture capital investors. Some of the things that must be taken under consideration before obtaining venture capital funding include:

• If the proposed business involves a unique service or product and targets large section of people
• If the business has the edge to compete rival companies and become market leader
• If the service or product has the potential to get the public glare
• If the service or product has the potential to achieve gross margins higher than 50 percent
• If the management team handling the company or business is skilled and experienced enough

If your replies to all the above sentences are in affirmative, you are the right candidate to be benefited by venture capital funding.

Difference between Venture Capital Investment &Venture Capital Loans

Roles played by venture capital investment and venture capital loans for the growth of a new business are similar. Both types of funding are sought for setting up new businesses. However, there is one difference between them. In the case of venture capital investment, all the risk rests with the concerned venture capital firm. While, in the case of venture capital loans, the borrowed money is repaid by the borrower.

Make a Good Business Plan

Business plan is mandatory for any entrepreneurial venture. It is required for either types of business venture, be it newly setup or established. Business funding plan serves as guideline for future business development.

Capital funding & Its Sources

Main sources of venture capital funding are institutional investors as well as individuals with high net worth. Money in venture capital firms is pooled collectively by committed investment firms.