Get All Access for $5/mo

Here's a VC's Take on Two Important Funding Trends Expected in 2017 Entrepreneur India spoke to Anand Lunia, General Partner at IndiaQuotient, on funding trends and checks entrepreneurs should make prior to picking an investor.

By Sneha Banerjee

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock

Foreign funds and two or more funds coming together for a single round of funds are two key trends that are set to emerge in 2017. But are how does an entrepreneur deal with these two trends?

Entrepreneur India spoke to Anand Lunia, General Partner at IndiaQuotient, on funding trends and checks entrepreneurs should make prior to picking an investor.

Will 2017 see two or more funds come together for a single round of funds?

"We are going to see that because a lot of companies this yearcould not raise follow on funds. So VCs know that there is a huge gap in large Series A and Series B funds and there is a gap in $5 million size of funding. Hence right from the onset, two, three VCs will combine with the view that the next round also all two of them or three of them could do on their own and not depend on an external investor," Anand said.

What should foreign firms have as their funding thesis before venturing into India?

With the overwhelming response Indian startups are receiving from foreign funds, it's important to understand the funding thesis of each and every international firm. Anand said that these funds should basically keep the Indian consumer in mind.

"Why would they come to invest in a SaaS company which looks at the U.S. market or anything else. I think people come here to take an exposure on the Indian consumer market, ideally they should be looking at the Indian consumer first," he added.

On asking what entrepreneurs should be mindful about while picking investors, Anand said that entrepreneurs should be aware of the case history of the VC and the track record of companies they have traditionally placed their bets on.

Anand stressed on the fact that entrepreneurs should not just take money from someone just because he comes with a lot of money and take funds from legit sources.

Anand was a key panelist at GMIC Bangalore conducted by G Startup Worldwide.

Sneha Banerjee

Entrepreneur Staff

Former Staff, Entrepreneur India

She used to write for Entrepreneur India from Bangalore and other cities in South India. 

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

Growing a Business

How to Spot Trends and Anticipate Market Shifts Before Your Competition

Discover how to identify disruptive trends before your competitors by mastering the art of anticipating market shifts. Learn strategies for staying ahead and gaining a competitive edge in business.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.