Investment In Start-Ups

1. Blog 1: IPVentures.in Investment In Start-Ups India is becoming a developed economy with every stage of advancement and innovation being infused in it. In recent times the people of the economy are moving towards entrepreneurship rather than service sector. Hundreds of start-ups are coming into the market daily, and this has ballooned up the competition in the economy. But without money and investment, no start-up can survive for long; it can also be said that money is the blood of the company in the initial stage. On one side, where many start- ups are coming up in India many angel investors also coming forward on the other side, to fund the former. Being a good option for investment, and a chance to make money; many early-stage investors in India choose their project for investment after proper analysis of the project plan. For the same, the novice entrepreneurs need to make their portfolio impressive enough to make these early investors invest in their companies. The investment is done on a contract basis, under which the participation of the investor in the decision making, and profits of the company is mentioned. But, one needs to know that as to how these investors invest in start-ups in India? Well here are the steps mentioned below for the same: ➢ The investor acquires an in-depth knowledge about the start-up company and the type of projects it will be working on shortly. ➢ Having analyzed the company from both financial and managerial perspective; next, the investor draws out an investing structure. As in how much and in what proportion the investment will take place. ➢ Discussions and negotiations take place between the investor and the entrepreneur on the same grounds. ➢ Having the final deal done; a contract is drafted for the same; keeping all aspects into consideration. And, subsequently, the investor transfers the money in whatsoever proportion decided to the entrepreneur’s account. ➢ This payment can be done in lump sum basis or can be done in installments, depending upon the consent of both the parties. As mentioned above, this way early-stage investors in India invest in the start-ups and promote wealth generation. Start-ups have been and are a great contribution for Make in India initiative, and these investors act as the supporting pillar for the same!