Why Technology Forms the Crux in Any Modern Fundraising Process?
Entrepreneur's New Year’s Guide
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
If you are an entrepreneur or planning to turn entrepreneurial now, through founding a startup, then it is worth noting that next-gen disruptive technology is the crux when you apply for raising funds through either angel investors or venture capitalists (VCs). Here, specific funding rounds (Series A, Pre, Series B, Series C, et al) does not matter.
With more and more people coming up with startups, the investors have also become really smart,as we can not expect the investor who is the real risk taker to stay naive. Experts believe that technology harnessing is the key which should take your fundraising dream closer to reality when you sit down with your potential investors (and mentors). In this regard, Entrepreneur India spoke to multiple startup owners who have recently raised substantial venture capital, to capture their views on technology being the driving factor behind a majority of modern startups; mostly to solve plaguing societal issues.
Delving deep with technology
“We use deep learning and proprietary algorithms to automate every mile of the supply chain and remove human dependency in decision making,” states Nishith Rastogi who is Co-Founder and CEO at Locus which is a startup that uses disruptive technology to offer a variety of services such as real-time tracking, insights and analytics, beat optimisation, efficient warehouse management, vehicle allocation and utilisation, intuitive 3D packing and measurement of packages.
Rastogi adds that, with technology being closer to real life at the core, there is bound to be disruption positively impacting aspects around human life. He further adds that this concept helped him connect with investors such as Exfinity, Pi Ventures, DSP Group, and Blume. Very recently, Locus secured Pre Series B funding amounting to USD 4 Million.
“Technology has helped us in offering a very personalized high quality wealth advisory experience, at scale. Our investors also believed that technology will help in democratizing access to financial products for the retail investors,” informs Nitin Agarwal CEO at Oro Wealth which also recently raised Series A funding worth USD 1.6 Million.
Agarwal’s statement adds substance to technology harnessing being a key criteria for investors if they have to mentor startups even if these are sector agnostic.
Wooing investors – to invest in technology
With technology-driven models being the key, it takes a lot of convincing on the part of startup owners to actually get investors to invest. Hence, you could follow the straight-bat approach. This requires you to get your stories right, have clear goals and back it up with a solid execution plan.
This approach is also recommended by Rastogi who stated that the funds raised through this approach would be used to further Locus' global expansion plans whilst continuing to build the IP.
The Final Step is technology-driven execution
Your first-time business definitely deserves growth; but startups owners believe that technology-driven growth could serve as the much-required shot in the arm; with investors also potentially looking at investing in technology-backed growth of startups.
“The learning from our fund raising experience was to have a clear vision on how you can grow your venture into a very big business as well as demonstrating to the investors how you have executed on your vision so far,” says Agarwal.
“We believe that wealth-tech is going to be the next frontier because there is a steady rise in wealth amongst individuals who will actively look for robust investment platforms,” he adds when asked about the future potential of technology-driven domains in India.