How to Get Investment for Startup [Helpful Guide]

In the Union budget for 2014-15, the Government of India has launched a 10,000 crore Startup Fund. However, the question that arises is how to get investment for startup?

Also read: How to Find Investors to Start a Business

Diversify your portfolio

Diversifying your portfolio is a way to minimize risk. Whether you are trying to get an investment for a startup, looking to grow your investments, or simply want to protect your assets, diversification is a smart strategy.

Diversification means spreading the risk across several different types of investments. This can be done by investing in a variety of companies in different sectors. You can also invest in foreign stocks and bonds.

Diversification reduces the risk of losing money in the stock market. If the economy is in a downturn, all of your investments may be affected. Also, the performance of individual investments can throw your portfolio off balance.

Investing in a diversified portfolio is a good idea, especially if you’re a first time investor. Start with small amounts of money. The first few investments can be a lot riskier, so you don’t want to risk more than you can afford.

When you are ready to add more assets, you can purchase mutual funds or exchange traded funds. These can be used to create a custom-made investment portfolio.

Determine a fair percentage

If you are in the startup business you’ll have to do a bit of due diligence before deciding on a percentage to offer your investors. There are a number of key factors to consider such as what your startup can afford to spend and who’s the VC in the room. Having an idea of what you can and can’t afford will make the decision making process a lot easier.

The biggest question is, how much are you willing to part with? In this day and age of venture capitalists and seed funds, the answer isn’t always easy. To get an edge over the competition, you’ll have to be smart about your offers. The key is to find a reputable partner in the startup game who knows what they’re doing and isn’t afraid to put their money where their mouth is.

Choosing your partner carefully will help avoid costly misunderstandings and a rocky startup. For example, you may want to consider the cost of living in your new home town before committing to a hefty investment. You also don’t want to go into the deal with a sleazy partner who doesn’t have your best interests at heart. Fortunately, there are a number of tips and tricks you can use to ensure you’re not on the hook for a big mistake.

While you’re at it, be sure to check out your business’s tax returns and other financial data to avoid future surprises. You can also find out if you’re eligible for a government subsidy or business loan.

Figure out how many shares your investment will actually buy

If you are planning on getting funding for your startup, you probably know how important it is to make a wise decision. However, this is not always easy. Fortunately, there are several standardized tests to help guide you to the good investment. For example, what’s the best way to go about getting a VC?

The trick is to pick the VC who possesses the requisite savvy, a shrewd VC who can back up her words with action. To further weed out the unqualified, make sure to do a thorough background check and keep your options open. Getting started with a VC can be a daunting task, but with some diligence and a little patience, it can be a rewarding experience.

After all, a VC is your ally for the long haul. On top of that, your VC is the most likely person to make your dreams a reality. Therefore, you need to be prepared for the best possible outcomes. And what better way to do this than to learn all you can about your prospective VC? Fortunately, the most reputable VC’s are not shy about sharing their best practices, ensuring a smooth VC experience for everyone. You can find a full list of recommended VCs here.

While you are at it, do a little bit of research and you’ll be surprised at how many startups make your bucket list. In fact, your bucket list may be your best friend, and not the other way around. With that in mind, make sure you don’t forget to leave a few roomies along the way.

Government of India launched 10,000 Crore Startup Fund in Union budget 2014-15

In the Union Budget 2014-15, the Government of India announced the launching of a startup fund worth INR 10,000 crore. The funds will help promote capital flows to start-ups and SMEs. This initiative will also encourage innovation and entrepreneurship.

Startups play a crucial role in any country’s development. According to the Economic Survey 2014-15, India has become the fourth largest hub for startups in the world. There are over 3,100 start-ups in India. They directly employ over 40 lakh people.

While the government’s initiatives for the startup community have been largely positive, there is still much to do. Arun Jaitley’s recent announcement of a Rs 10,000-crore fund to support early-stage companies gave an impetus to the Indian startup ecosystem. But a few fundamental issues need to be addressed. These include tax policy, incentives, simplified regulatory framework and subsidies.

With the Union Budget 2014-15 just around the corner, startups and investors are looking forward to positive developments on taxation issues. However, the government has yet to provide a clear policy framework. It is important to address the concerns of high potential start-ups and ease the taxation environment for digital entrepreneurs.

The government is also set to launch a national multi-skill programme called Skill India. It will provide training and IT skills to rural areas. Also, the National Rural Internet and Technology Mission will provide broadband services to villages. Similarly, the E-Kranti scheme will improve government service delivery.

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