Tanmay Sheoren .

How hard is it to get funding for ideation/ MVP stage startup?

Originally Posted Here

Rahul Rajvanshi

Depends upon what you are working on

Neeraj Tiwari

It is easy if you do it properly.

Funds can be raised easily if you validate your idea and find enough evidence that post-funding you can make money (not just getting users and then thinking of making money later) and you can return all the money with 1X return in 12 months (if they want an exit in 12 months).

Investors never define/control terms, do remember...they need you more than you need them. Do see the colour of money.

However, it will be an uphill task and will be very hard if you fail to find evidence that your product/idea can make money (yes money, not users).

You will have to make a perfect plan and a convincing product with EVIDENCE (no HOPE) that you can make money.

Shivam Malhotra

Neeraj Tiwari sorry but who is looking for a 1x return and which investor stays for an year? The terms are standard in VC land,trust me you've no control over them until and unless you're series A or series B.

also,funds cant be raised that easily.there are a lot of tit bits involved,took me 7 months to raise even though we had a 7 figure revenue to show validation (no tech enabled product though,we developed it during these 7 months).

Shazia Usman

Not that hard. Refine refine and refine your pitch and if it’s big and better you will get someone to invest in you.

Arunaday Basu

Mujhe pata hain ki yahan bohut saare shaane hain. Shaanpatti karna inki fitrat hain. Tujhe saach nahi bolenge ki - it is truly difficult to get funding for something in the Idea stage.

I am challenging anyone in this group and and in this thread to come and get funding for my ideas. I have 15 ideas (at least), some of them with pitch decks and proper financial projections.

So the people who are saying it's easy to raise from the idea stage, I am offering them 49% of the shares to the company which will be made if they can pitch and raise for my ideas.

Don't worry. Not even one single person will dare to reply to this.

Coming to the MVP phase: if you have a MVP what else do you need? Make a pitch and approach an angel investor. Ensure that the industry in which the investor invests in matches with your product. That's it.

Anything that goes beyond MVP stage, I will never pitch, because it's already become a company after that. I don't care about getting investments for it then. Kisi ko shares nahi dunga. Saara profits khud lunga.

So I pitch only my ideas. Not even MVPs. If I make a MVP out of something I have already put my hard work and sweat into it, so I won't give even 1% to an investor after that.

If investors are reading this, they should know this🖤

Shazia Usman

Very appreciative of you that you are giving him the bitter truth. However you are also telling Tanmay that he probably does not have what it takes to convince someone of his idea knowing he does not have an MVP. Probably kickstarter should be shut asper your explanation. Now this group for me is not about gyan but any entrepreneur must remember that it’s not an idea that is invested in , its the person who is executing the idea is what investors worry about at an early stage and yes such investors do exist in form of friends , family and angels . If you think you have that edge let no one tell you what you can or cannot do. F... it and move forward.

Rohit Nair

Arunaday Basu yeah lol accurate. Nobody gets funding at idea stage.

I had a doubt btw, is building a prototype considered an idea stage?

Arunaday Basu

good question because there is obviously a difference between a prototype and a MVP and I am currently advising on a tech product and we were just having that discussion.

That to make the prototype its gonna take 2 or 3 months. Maybe even 4.

But to make a MVP which we can take to an investor it's gonna take much more than that. By my standards, at least 6 months. Could even be 1 year.

So the difference is evident.

When you are showing a MVP to the investor along with your pitch, it should be completely bug-free and ALL the features that you have promised in your pitch should more or less be there. Ya, it could have an average UI. That can be improved. But you gotta take the pain of developing the tech and the interaction (UX) perfectly before that.

By my definition of a MVP, the MVP has to be an abstraction of the user experience and interaction. I think you know what abstraction means.

Shivam Malhotra

Arunaday Basu our MVP took 9 months to build,the same time it took me to raise the first cheque! Those who say its easy have either not done it themselves or they come from an IIT/IIM or an Ivy League with a BCG/Mckinsey or a private equity experience.Its crazy out there.

Hareesh Nakerikanti

Bro it's too hard in India to raise funding at ideation or MVP stage. Indian angel investors look only for revenue stage and profitable startups. I am saying with experience, don't trust any one who is saying it's easy until unless they raised at ideation stage.

Abhi Jeet

My friend raise his funds on a napkin idea. It is very much possible, do you know why?

He had started, scaled and exited two ventures in the past. Not in the days when raising funds was cool. If you have a history, kick-ass IP or team idea stage funding still happens. But not in the case where you have 15 ideas and are doing pray & spray.

Concluding, apply for incubators who give small grants to get started. That's the best best.

Ashu Srivastava

Funding an idea is a myth.
Lucky are the ones who score a million dollars with just an idea sketched on a tissue paper (their credentials speak for their work otherwise).

Assuming rest of us have big endeavours but less resource to spend, raising a single dollar for your idea W/O some sorta traction is 99% a failed attempt.

Now if it’s a HW product for example, founder’s left with limited options to raise money and let alone the idea of raising a dollar with some sort of deck.
For a SW, yes there are slim chances a founder may land a 5 figure round then it’s highly a subjective debate on a different note altogether.

In other words, documenting some traction for a SW application is far more resource efficient, easy and manipulative than a similar HW product in the line.

On the top of it, landing 100s of meetings with funds out there is a gruesome task in itself!
I’ve learnt this the hard way and I’ve always been hanging my feet BW two boats all this while

Neeraj Joshi

It depends bro majorly on you and your team member’s capability. Investors should be able to trust that you guys would be able to deliver.

So mainly for a normal person, friends and family are the ones who might be able to invest some amount,

Otherwise, folks in your network if you have a good network

But as I said, they will be only folks who trust you if you don’t have a profile

Shlok Joshi

Extremely difficult, I have been trying for the better part of a year to do this. Finally I just decided to bootstrap and not take any investment to start. Trust me it’s much better this way, you will start to look at your business differently and be very lean with what you do. Look for alternate sources of financing. Go to your customers. Talk to them. Let them be the saviors of your business, get validation, pre orders, basically prove that there is a need for your idea. If you do that, always remember that if you are indeed raising money in India, the amount of money you raise here is very different to how much you would have been able to raise in the US or Singapore for that matter. So if you have that one idea. Go for it. Don’t think that you ever need money to get started, all you need is passion and perseverance and get yourself out there. Money will come to you.

Thinesh Ven

I think there's no right/wrong in what everyone is saying basically funding is either networking or showing traction (in the form of users and/or revenue that is poised for further growth)

1. If you know afew wealthy friends who knows more wealthy friends and they trust you and your idea, then hey it's not gonna be hard to get funded at the idea stage.

2. If you don't have a strong network, then yes you'll have to show some form traction/growth/profitability metrics, meet as many people as you can and charm each and everyone who could be a potential investor (because there a lots of us out there and you're probably against others who come from better schools, have a better product, proven traction etc...)

A Ashish

I don't one why to run behind funding,? Run behind your start up. ,that's the real start up. Investors will follow you. Work for your start up not for funding

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