Funding Startup is becoming your obsession

1 minute


Money is extremely important. It gives measurability to value you’ve created. But, funding startup could become an obsession and stop you from starting up. Mostly, what kills the idea are thoughts like losing money, low return on investment, debt trap.

Funding StartupStartups with such humble beginning have done so well. Which means, funding startup is not crazy. You just need to have your “skin in the game”, rest everything will follow. Save from your earning for your startup. Imagine, as if you are investing in a company which you see as a great future potential. Build the prototype and launch.

Deep Kalra of Make My Trip fame says, “I was lucky to get funding on my business plan. During the dot-com bust, MMT investors started wrapping up their investments in India. MMT came on the radar. Deep with his founding partners put in everything from their pocket. And ensured they bought their company back from the investors. For next five years, the company operated with just 2 months of working capital. Any month, they could have called off. But they sustained”

MMT was lucky to have investors at the business plan stage. In today’s environment me-too ideas have gone ahead and done well. But initially, they didn’t have investors to support their idea. Entrepreneurs started funding startup on personal loans, credit card loans and other unsecured loans. They found this route better than selling their company cheap or not starting up. Remember “It could be a dream for you, for others it’s a business of making money”.

Subsequently funding startup

Your next round of funding startup could come in from friend-n-family. These are the people who trust you and risk early in your start-up against respectable equity. Pay them their dues. Then you have some fabulous crowd-funding platforms to reach out to against smaller equity stakes. Up next could be, series A and then B and you never know, soon you may be a public listed company.

So what’s great! You feel so? You will be diluting your equity at each stage of the funding. But don’t you think, 100% of nothing is a lot less than 17% of a Big Company. Again! you are getting obsessed aren’t you?

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