First Make Sure You Get Your Basics Right, Funding Can Wait!
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Amid funding vows and investment slowdown chatter there are multiple Series A round of funds that have been raised. If you’ve ever wondered how, here’s an industry expert who can help you master the art of “seeking funds.”
Anil Kumar, Founder and CEO, RedSeer Consulting, told Entrepreneur Media on how investors today are bullish on innovative ideas such as rental models, IoT and enterprise-tech models.
According to Anil, a six month slowdown should not change the DNA of any investor model. “When I when to speak to my clientele, they only say that the deal flow has reduced and they have started looking for some of the other sectors,” he said.
When should a startup raise funds?
According to Anil, a startup requires funds under two circumstances – one for the money and secondly to get into the ecosystem of the big names.
Anil said that raising funds for a startup is the toughest thing to do as the founder/founders see themselves give out a large part of their company and also end up losing a certain amount of independence as well.
“In my mind one should delay the process of raising funds as much as possible. The moment a startup starts performing above average, funds will start approaching them. You should get your basics right. Once you start doing well and get your business model set, you should think about fund raising,” Anil said.
Good VCs and investors are always on the lookout for the next Binny Bansal or Bhavish Aggarwal, he added.
RedSeer is a research and advisory firm launched in 2009. Headquartered in Bangalore, RedSeer caters into market facing, research based consulting engagements with over 150 clients. The company works across multiple verticals with expertise in the e-commerce space.