Presentation describing the different kinds of Funding for startups.

1. SEED & VC Funding
● What is SEED Funding?
● What is VC Funding?
● SEED vs VC Funding
● List of VC funding companies in India
● VC and SEED investors in Maharashtra
● Top funding firms
● Funding Firm : Pune

2. SEED Funding
● Also known as Seed money or seed fund, is a form of
securities offering in which an investor purchases part of a
business.
● To support the business until it can generate cash of its own
(cash flow), or until it is ready for further investments.
● Options include friends and family funding, angel funding,
and crowdfunding.
● Can be used to pay for preliminary operations such as
market research and product development.

3. VC Funding
● Venture capital (VC) is financial capital provided to early-
stage, high-potential, growth startup companies.
● Earns money by owning equity in the companies it invests
in, which usually have a novel technology or business
model in high technology industries, such as biotechnology
and IT.
● Occurs after the seed funding round as the first round of
institutional capital to fund growth (also referred to as Series
A round) in the interest of generating a return through an
eventual realization event, such as an IPO or trade sale of
the company.

4. VC Funding continued..
● Attractive for new companies with limited operating history
that are too small to raise capital in the public markets and
have not reached the point where they are able to secure a
bank loan or complete a debt offering.
● Venture capitalists typically assist at four stages in the
company's development:
➔ Idea generation;
➔ Start-up;
➔ Ramp up; and
➔ Exit

5. ● There are typically six stages of venture round financing
offered in Venture Capital, that roughly correspond to these
stages of a company's development.
➔ Seed funding: The earliest round of financing needed to
prove a new idea, often provided by angel investors. Equity
crowdfunding is also emerging as an option for seed
funding.
➔ Start-up: Early stage firms that need funding for expenses
associated with marketing and product development
➔ Growth (Series A round): Early sales and manufacturing
funds
Financing Stages

6. ➔ Second-Round: Working capital for early stage companies
that are selling product, but not yet turning a profit
➔ Expansion: Also called Mezzanine financing, this is
expansion money for a newly profitable company
➔ Exit of venture capitalist: Also called bridge financing, 4th
round is intended to finance the "going public" process

7. Structure of a VC
● Typically structured
as partnerships, the
general partners of
which serve as the
managers of the firm
and will serve as
investment advisors
to the venture capital
funds raised.

8. Types of VC firms
● Factors affecting VC firms' decisions to invest:
➔ Business Situation: Some VCs tend to invest in new, disruptive ideas,
or fledgling companies. Others prefer investing in established
companies that need support to go public or grow.
➔ Some invest solely in certain industries
➔ Some prefer operating locally while others may operate nationwide or
even globally
➔ Some may want a quicker public sale of the company or expect fast
growth. The amount of help a VC provides can vary from one firm to
the next.

9. SEED vs VC
● Involves lesser money and
complexity
● Involves a higher risk than
normal venture capital
funding since the investor
does not see any existing
projects to evaluate for
funding.
● The investments made are
usually lower (in the tens of
thousands to the hundreds of
thousands of dollars range)
● Investments tend to come
from institutional investors
and tend to involve
significantly more money.
● Lesser risk involved as it is
“level two” of funding in
most cases.
● Investments are higher (in the
hundreds of thousands to the
millions of dollars range), for
similar levels of stake in the
company.

10. Top 10 VC Funding companies - India
● Here are the most active top 10 VC funding firms in India.
The link below lists top 47 with all the details as in the
spreadsheet
● http://inc42.com/resources/top-47-active-venture-capital-firms-indi
●

11. Top 10 VC funding firms -
Maharashtra
● http://venture-capital-firms.findthebest.com/d/d/Maharas

12. Top 10 VC funding firms -
Maharashtra
● http://venture-capital-firms.findthebest.com/d/d/Maharas

13. Venture Centre - Pune
● About the firm:
➢ The Venture Center is the trademark of Entrepreneurship
Development Center, a not-for-profit company hosted by
the National Chemical Laboratory, Pune, India.
The Venture Center is a technology business incubator
specializing in technology startups offering products and
services exploiting scientific expertise in the areas of
materials, chemicals and biological sciences & engineering.

14. Venture Centre - Pune
Make/Break criteria
 There must be at-least one dedicated entrepreneur involved in
the venture
 There must be a formal business plan
 The venture and the team must have high ethical & professional
standards
 The venture must have a strong technology/knowledge
component
 EHS requirements must be met

15. ● Key Proof-of-Concept must be demonstrated & must be
reproducible
● The venture must be registered as a private limited company, or
must be in the process of registration
● The amount of funding requested must be less than Rs 25 lakh
● The entrepreneur(s) must be willing to share equity in the
venture
● The seed funds requested must be for activities such as product
development, prototyping, scale-up, developing IP portfolio, test
marketing, trials, certification, testing

16. ● Terms for Seed funding
● Investment mode: Equity ownership in a private limited
company
● Equity stake for seed fund: 10% - 25%
● Investment amount: Rs 1 lakh - 25 lakh (preferably, Rs 15
lakh - Rs 20 lakh)
● Investment to be deployed in installments, tied to significant
milestones

17. ● Contact:
Manager- Incubator
Venture Center
100, NCL Innovation Park
Dr. Homi Bhabha Road
Pune - 411008
Phone: +91-20-2586-5877
Fax: +91-20-2586-5879
Email: managerincubator@venturecenter.co.in