Fund-raising is of prime importance today for any business to succeed, be it a large company targeting growth, a mid-size company targeting enhancement of facilities or be it a startup looking for better cash flow management. Getting the funds on the table is a challenge as it requires an in-depth study from both the sides, promoter and the investor, to come together with a common vision and mission.
In many cases, a fundraising process takes quite a long time because the promoter is not tuned to what the investor is looking for and sometimes the promoter itself may find not being able to take a decision as to whether he wants a particular investor to fund his project.
Startup exchange, the next in line in the suite of the module of ISF Analytica & Informatica Pvt. Ltd., enable to exactly solve this problem in the following ways:-
- Create an information memorandum as a teaser for the investor
- Create a proper pitch deck for the investor presentation
- Create a detailed project report for deep dive
- Create a financial and marketing strategy model
All this is done by the previous applications in the ISF suite and is passed on as a docket to the Startup Exchange.
Next, on the exchange, the promoter needs to be on-boarded with a proper due diligence process as well as the investor’s needs to be on-boarded with a clear KYC. Startup Exchange exactly enables that and lists the promoters project, as well as investors, the profile for each of them to view the other.
The most important feature that Startup Exchange addresses are the matchmaking process which is dependent on:-
- Sector matching
- Quantum of fund required versus the investors’ risk appetite
- Nature & type of funding like Seed, Angel, Venture Capital or Private Equity and respective series
- Valuation of the project
- Quantum of equity that would be diluted
- Duration of the fund requirement
- Exit strategy for the investor
- Risk Factors and mitigation strategy
Once a set of matches are shortlisted, the Startup Exchange comes out for the promoters with a probable list of investors and for the investors, it shows a probable list of projects that they may like to invest. When prompted, the Information Memorandum is sent to the investor as the first mailer followed by other documents like Pitch Deck, Detailed Project report, Financial & Marketing plan and so on. Discussion can be held using our Mentorbox tool that allows collaborating using whiteboard and video conferencing feature including the chat methods.
Finally, on the closure of a deal, the promoter is sent the drawdown schedule plan which he signs off with the investor transferring the agreed equity in the process.