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There’s this amazing concept that you have, and you know by your gut that this would be a smash hit in the marketplace. Not only would this create a niche segment of customers, but also create a new level of market altogether. You are so immersed in thinking about executing it to the last detail. But, this huge gap between you and the market is only widening. Besides this, it is also threatening to derail your entire plan to make your venture a success. 
 
Of course anybody who has tried swimming in the sea of market, looking for venture capitalists (VCs) to fund their dreams that are bound to make it big later; know it too well that raising money, even if one opts for crowd funding, isn’t as uncomplicated as it sounds. This topic was discussed at great length at the <a href="http://mumbai.tie.org/">TiE Smashup 5.0</a> recently held at IIT Bombay as well, throwing light on what added credibility was required to attract funding for anything that was going to rock the market. 
 
Here are five pointers that would be helpful in ensuring your dream is well-fed with funds so that it can grow into a healthy product. 
 
1. Pool in your own resources 
Make no mistake. Finding funders for <a href="http://www.businessinsider.in/searchresult.cms?query=startup">your startup</a> is probably the most difficult part of the job. It is highly time consuming, and can potentially distract you from developing your product, and is also fraught with emotional upheavals. Worst part is, the results are never under control. 
 
But, this is what makes this journey as exciting as it can get. If you can factor in time spent on looking for funding and draw up a strategy to get the funders buy into your product, you have arrived with a plan and clarity. Ensure that you have pooled in some of your personal resources so that when you present yourself before the investors, you as an enterprise look healthy and not famished and desperate for ANY money they can throw in your direction. 
 
2. Be realistic 
Even if you appear a <a href="http://www.businessinsider.in/Here-are-10-things-that-can-help-your-startup-sail-in-first-365-days/articleshow/48958098.cms">small enterprise</a>, being honest and upfront is better than selling fabricated dreams to VCs or funders, no matter how big they are. Stay rooted, and chart a plan, which has a clear roadmap if not a perfect one, to discuss with them. Have short term goals, and an end goal – all within the realm of practical reality. It not only shows your preparedness, but also establishes credibility as a communicator. Positive and precise communication is key, not exaggeration. 
 
V C Karthic of WoNoBo and Buzzworks Business Services, who is also an angel investor, said, “Humility is more important than ability. Big ideas need to surface not just ‘me too’ ideas. Investors need start-ups as much as start-ups need investors. Just because your start-up is not fundable does not mean it is not sustainable.” 
 
3. Integrity The propensity to use funder’s money to celebrate bask in the glory is not done. To have this integral value will definitely help the funder place more faith in you and your potential. When customers send you a <keyword id="154361" type="PERSON" weightage="20" keywordseo="feedback">feedback</keyword> about the product, accept it gracefully. Because, you are working to please that person at the end of this product chain that begins with you. 
 Hitesh Bhatia of Noodle Play and TiE <keyword id="185553" type="ORGANIZATION" weightage="20" keywordseo="Food-Network">Food Network</keyword> said, it is important to please your customer. “Own up to your mistakes, and don’t compromise. Communicate. (For instance) Running a food startup is much like wooing your girlfriend into marriage - the commitment lasts forever,” he added. 
 
4. Pragmatic roadmap 
Having a roadmap that isn’t too ambitious for the given set up is something the investors look forward to hearing from you. Don’t build castles in the air as they collapse even before they are complete. Investors are not the people you should be selling dreams to. They will be more than satisfied with your well-etched concept. 
 
5. Raise curiosity 
Most startups don’t use media efficiently with the fear of having to face backfiring. Learn a thing or two from politicians; learn to handle positive as well as negativity with equal aplomb. Reaching customers through media gives some sort of credibility that can be built upon. And hey, good PR can also help you find and connect with funders too. 
(Image: Thinkstock)

Five smart roads that can raise money for your startup

<a href="http://www.businessinsider.in/Here-are-10-things-that-can-help-your-startup-sail-in-first-365-days/articleshow/48958098.cms">Starting your own business</a> is indeed exciting. If you have found a funder, even more happiness flows your way. Soon, you would be counted among the most successful names among entrepreneurs in India, bingo! Could there be anything more that you can possibly ask for? Well, for starts, there are quite a few things you should be doing to ensure your idea, your hard work, time and talent hasn’t been taken for a ride. In a dog eat dog world, faith is a weak word, unless bolstered with some solid foundation. 
 
This aspect came into a deeper discussion at the recently held TiE SmashUp 5.0 at <a href="http://www.businessinsider.in/searchresult.cms?query=IIT+Bombay">IIT Bombay</a>. The opinions were then put forth by the participants who had been meticulous from the beginning, and then there were those who learnt it the hard way. Either ways, the words of experience carried a lot of weight for future entrepreneurs. 
 
Here are a few pointers that can ensure taking the legal route to strengthen your business is not only vital, but also the single most aspect that can decide the future of a company. 
 
1. Founders’ Deal: A Must 
When you have invested your lifetime, pooled in money, carefully curated the talent that can help realize your dream of this concept working in the market place, how difficult it is to ensure that your business is also legally protected? 
 
“A mistake lot of founders make is not making a Founder's agreement. It's important to make one usually” says <a href="http://www.spiceroute.co/">Spice Route Advisors</a> founder Praveen Raju. 
 
2. Co-founders’ deal 
Allocating ownership of your new enterprise amongst the founding team is usually done if the main founder desires so. This is usually a subjective matter and can sometimes turn into a major challenge of sorts, a delicate issue that can hurt the prospects of the company. In your own interest, it is imperative that you fix how you would split up the equity between the founding team upfront. 
 
3. Languid about <keyword id="1613117" type="UNKNOWN" weightage="100" keywordseo="Legal-knowledge">legal knowledge</keyword> 
For instance, complying with securities’ law when you offer stocks, shares to family and friends is a must. It is imperative to ensure you are also aware of securities laws as well when you begin to dole out goodies to friends, family and those who have supported your venture in some way or the other. 
 
4. <keyword id="3071595" type="UNKNOWN" weightage="100" keywordseo="Intellectual-property-issues">Intellectual property issues</keyword> 
Don’t get two years into the business, and then realize a name of your product is the same as the name of a foot massager registered in UK. Be sure where you are headed with the issues pertaining to your intellectual property, and others’ too in the same realm. 
 
5. Context of the land 
Make sure you are aware of what your market share has to be in the near future and keep dreams as well as your work close to that. Not all markets are the same. We all know what works in India may never work in the UK or in Saudi Arabia. Ensure you are aware of both market, and legalities of the land you are conducting business in. 
 
6. <keyword id="888442" type="UNKNOWN" weightage="100" keywordseo="employment-issues">Employment issues</keyword> 
An employment draft is a must even before you hire your first employee. Whether the person is well-qualified to do the required job, and is willing to sign the non-disclosure agreement is something you will definitely want to look into. Be sure to run a background check into your employee. 
 
7. Funder relationship An <keyword id="3071596" type="UNKNOWN" weightage="100" keywordseo="Investor-Agreement">investor agreement</keyword> with your funder should be made, and be revived at regular intervals. As a founder, things get complicated if you fail to read the fine print. Be sure you do everything to protect your dream. 
 
“You have to talk frankly with your co-founders and you have to be <a href="http://www.businessinsider.in/Five-smart-roads-that-can-raise-money-for-your-startup/articleshow/48987379.cms">firm with investors</a>. Investors will play games with you and your co-founders. Make sure you’re very frank with your co-founders with regard to everything and have a very clear vision and goals,” says Shreekant Pawar, founder of <a href="http://diabe.to/">Diabeto</a>. 
 
8. Co-founder agreement 
Many business startups go through this hiccup but a lot of them don’t pass on the lessons. What happens when co-founder wants to walk out on the company mid way? Having a proper co-founder agreement with legal bindings on parting terms, this can be the most hassling experience. 
 
9. <keyword id="194640" type="POSITION" weightage="100" keywordseo="legal-counsel">Legal counsel</keyword>, taxation 
Invest in a good legal counsel who will work for you. Taxation is something you need to work meticulously on, if you are planning on being around for a longer time than a fly-by-night kind of a company. 
 
10. Vendor contracts 
When you have to use outside talent for certain aspects of your work, ensure you have them on your vendor contract. Enforce most important aspects about costing, escalation, legal provisions and strict non-disclosure terms in it. 
 
(Image Credits: Indiatimes)

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Five smart roads that can raise money for your startup

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