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 !
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