India ranks fifth in the world in terms of startups, with nearly 3,100 currently in operation. ” India is seeing high quality of entrepreneurs giving up large opportunity costs and it has never been witnessed before. This, combined with the Internet growth story, makes it a very attractive investment market,” says Gopal Modi, President, Investments, Orios Venture Partners.
In tandem with the surging enterprise, funds are flowing in like never before and the country is buzzing with options—venture capitalists, angel investors, incubators and banks. Currently, the number of active investors in the country include 172 VCs, 43 angel investors and 48 incubators. As much as $4.75 billion of VC funding came through in 2014 and it has already touched $3.18 billion in 2015. Flipkart made the biggest splash with its two rounds of $1.7 billion funding, the highest in 2014, according to Venture Intelligence and Tracxn!, two of the VC tracking firms.
The business environment is also turning more conducive, with the government setting up the MUDRA Bank, which offers a corpus of Rs 20,000 crore for small and medium enterprises. Besides, various banks and finance companies have stepped up to encourage the trend.
If this has got you fired up to launch your own enterprise, hold on. Stories abound of individuals who have raised millions of dollars with merely ideas and passion as collateral, but these often overshadow the struggle, sweat and tough negotiations that go into soliciting funds. Without a feasible business plan and working model, it is not easy to secure capital. Even if you do, keeping the venture afloat is difficult. A good start does translate into half the work done, but how do you go about securing the much-needed funds?
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