Monday 27 January 2014

Tips for Choosing the Right Venture Capital Funds in India

Identifying and prudently selecting your venture-capital firm in India is the core move you can make being a startup. In addition, having investors on board who can guide your venture towards right direction can make all the future difference in your business.

Let's have a closer look why the source of your VC is as vital as the investment.

Your VC Knows your Business
Every entrepreneur wishes to work with investors who not only have deep pockets to help your startup to go from concept to right execution, but also can inherently understand the specific business model.

They may not be experts in your sector, but they mustn't be lost about your sector either. They should have some contacts. You should share a common business language.

Respects your Startup Timeline
When your development department is engulfed in creating the strategy that can prove your new business work, the interruption of a various venture-capital meetings may undo important business momentum. You need adequate time to focus on what can boost your startup. Your venture capitalist should understand that shorter meetings are more fruitful and should be encouraged.

High-potential VC Pulls High-caliber Teammates
While your team is equipped with smarts, growing a start-up business also requires intelligent hot shots under one roof. Getting a well-established venture capitalist on board can increase the likelihood that your business will attract new, industry-recognized team members.

Understands your Equity Potential
When you're working with an investor who has the capital to fund your startup, they should also comprehend that you may hold back some of the shares to reinforce later phases of funding. A well-selected investor should see the benefit in your idea to have the chance and the resources to grow further.

The Right VC is a Doorway to New Investors
Right venture capital partners may work to create gateways for other investors who can view your startup as even more worthwhile due to the company you keep. It may encourage people to throw good money to your business.

Synopsis
The above said tips are very vital in selecting a right venture capital firm in India. It shows how sourcing your venture capital to the right faces and names can be something more prominent than just that initial cash infusion.