Raising funds is one of the most crucial and difficult parts of building a startup — especially in a diverse and competitive market like India. From convincing angel investors to navigating venture capital firms, Indian founders must be prepared, strategic,founder tips for fundraising in India, and persistent.

Whether you're just starting out or preparing for your first big pitch, here are essential fundraising tips for founders in India, backed by real insights from the ecosystem.



1. Build a Business, Not Just a Pitch Deck

Many first-time founders focus heavily on the pitch deck but forget the basics — a working product, customer validation, and some traction.

✅ Investor Mindset: Indian investors are becoming more data-driven. They want proof that your idea works — not just slides.

Tip: Before reaching out to investors, ensure you have at least one of the following:

An MVP (Minimum Viable Product)





Paying customers or pilot users





Clear metrics like CAC, retention, or revenue trends







2. Start with Angel Investors and Seed Networks

Don’t wait for a big VC to notice you. In India, early funding often comes from:

Angel networks (e.g., Indian Angel Network, LetsVenture, Mumbai Angels)





Startup incubators (like T-Hub, CIIE, NSRCEL, SINE-IIT Bombay)





Influential founders who invest as mentors





✅ Tip: Warm introductions work best in India. Ask for referrals from other founders, LinkedIn contacts, or alumni networks.



3. Prepare for “Due Diligence Indian Style”

Indian investors often look at both business and founder background — education, previous work, and credibility.

Tip: Keep the following ready:

Company registration documents (ensure GST, PAN, etc., are in order)





Financial records, projections, and a clear cap table





A detailed founder profile (LinkedIn, achievements, media mentions)





✅ Avoid red flags: Fake traction, unclear business model, or poor record-keeping can kill deals quickly.



4. Understand the Funding Stages and Expectations

Each funding stage in India has its own benchmarks:

Stage

What Investors Expect

Pre-seed

Strong founder, idea validation, MVP

Seed

Early users, small revenue, market potential

Pre-Series A

Product-market fit, clear monetization strategy

Series A

Strong growth metrics, scale-readiness



✅ Tip: Don’t jump stages. Focus on raising the right amount for the stage you're at.



5. Nail Your Pitch — Keep It Crisp and India-Relevant

Investors in India often evaluate startups quickly and prefer:

Simple, jargon-free language





A clear value proposition





India-specific insights (e.g., Tier 2/3 scalability, price sensitivity)





✅ Tip: Practice your 1-minute elevator pitch. If you can’t explain your startup clearly in one minute, go back and simplify.



6. Know Your Numbers — Cold

You must be ready to answer:

Revenue and expenses (past and projected)





Customer acquisition cost (CAC)





Lifetime value (LTV)





Churn rate, burn rate, and runway





✅ Tip: Indian investors often test financial literacy. A founder who doesn’t know their metrics rarely gets funded.



7. Be Transparent About Challenges

Smart investors respect honesty. Don’t hide your risks — explain how you plan to overcome them.

✅ Tip: If you’ve failed before, mention it. Many Indian VCs are warming up to founders with previous startup experience, even if it didn’t work out.



8. Choose Investors Who Bring More Than Money

Look for investors who:

Understand your domain





Can open doors to partners or customers





Offer mentorship and strategic inputs





✅ Tip: Don’t chase valuation — chase the right investor fit. The right early backers can shape your entire growth trajectory.



9. Be Patient, But Keep Moving

Fundraising in India can take time — sometimes 3 to 6 months or more.

✅ Tip: Don’t put operations on hold while fundraising. Keep growing your product and customer base while pitching.



10. Bonus: Use Government Schemes and Grants

The Indian government actively supports startups via:

Startup India Seed Fund Scheme





SIDBI Fund of Funds





Atal Innovation Mission (AIM)





BIRAC Grants (for biotech/health)





✅ Tip: Apply to these programs early. Many Indian startups combine grant funding with angel investment in early stages.



Final Thoughts

Fundraising in India requires a balance of storytelling, numbers, and persistence. Investors are looking for founders who are grounded, passionate, and execution-focused — not just dreamers with a slick pitch.

Stay humble, stay prepared, and surround yourself with mentors who’ve walked the path. Remember: every big startup in India — from Flipkart to Freshworks — started with one “yes.”