When A VC firm is investing capital in your startup, how much money do they expect in return? I was having a talk with a very senior VC recently, I asked him the same question. He gave me the following data: Pre-seed/seed - 100x returns Series A - 30x Series B - 10x Series C - 3x Pre-Ipo - 2x The later they invest, the less return they expect. This is because in early stage of a startup, it is a very risky bet. so if a VC firm is taking a huge financial bet on a startup in it's early days, they want a huge return too. Indians VCs in general don't have the risk taking ability because they have the pressure to return LPs their money, this is the reason why we don't see many pre-seed focused VC firms in India. Most VC firms in India either invest at seed or series A round. I hope this changes soon. We need more VCs investing at pre-seed stage, which is also the most crucial stage for a startup.
Stages of A Startup 1)Ideation Stage 2)Planning Stage 3)Commitment Stage 4)Pre Seed Stage 5)Validation Stage(Pivot) 6)Seed Stage 7)Series Stage A/B/C/D................n 8)Growth Stage 9)Scaling Stage OR 9) Exit Stage
Learning phases for startup 1. Pre-seed stage 2.Seed stage 3.Early&startup stage 4.Growth stage 5.Expansion&Maturity stage 6.Exit stage
Some Indian-based VC Firms that do Pre-Seed funding! - 100X.VC - Eximius Ventures - IndiaQuotient - All In Capital - Huddle Ventures - 8i Ventures - Signal Ventures - Golden Sparrow (US based fund focused on Indian Pre-Seed & Seed) -
See MoreTop 10 accelerators that you can apply at a super early stage 👇 1. Y Combinator | Pre-Seed, $500k for ~10% 2. Entrepreneur First | No team, $250k for ~9% 3. South Park Commons| Pre-Idea, $1M 4. Antler Global | Pre-Seed, $250k for 9% 5. Sequoia
See MoreVenture Studio vs Pre-Seed VCs Venture Studios and Pre-Seed VCs have different approaches. While Pre-Seed VCs invest in existing businesses with potential in a very early stage, Venture Studios creates new startups from scratch, providing operation
See MoreVC Tales: Rajan Anandan, the celebrated VC, has a penchant for backing game-changers. -His $3M seed in Ola, India's ride-hailing giant, set the stage. -The $2M Series A in Freshworks, now a $10B SaaS unicorn, displayed his foresight. -Rajan's
See MoreA startup is seeking a Seed investment. The startup is valued at $5 million pre-money and is looking to raise $650,000 in this round. After this round, the startup plans to raise an additional $2.5 million in a series A round at a post-money valuatio
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