In the modern business environment where business entities are in high competition and striving to achieve faster growth, diversify operations, and enhance market presence, business entities seek Mergers and Acquisitions (M&A) to achieve their objectives. Globalization and aggression among competitors in industries is causing M&A activity to extend across different industries and the size of businesses. Companies seek investment banks to navigate through such complex transactions so as to unlock the maximum value.

These financial institutions play a crucial and often decisive role in executing M&A deals successfully.

What Are Mergers and Acquisitions?

Mergers and Acquisitions (M&A) refer to the process where companies or their key assets are combined through financial transactions. This can happen in several ways:

• Buy and fully absorb another company
  
• Merge with another company to create a new combined entity
• Acquire some or all of another company’s major assets
• Make a tender offer to purchase the company’s shares directly from shareholders
• It may carry out a hostile takeover, even without the target company’s approval

All these methods fall under M&A activities, as part of broader SME growth strategies,  where businesses are combined or restructured. The term M&A also refers to the specialized departments in financial institutions that help plan, advise on, or conduct these transactions.

What Do Investment Banks Do in M&A Deals?

During the stages of M&A, various strategic, financial, legal, and operational issues must be handled. A well-organized, professional structure has been ensured through the involvement of investment banks. These are the roles that are normally executed:

1. Deal Origination and Strategy

Investment banks conduct extensive research on the industry, and through networking, as well as their databases, suitable targets or buyers have been identified. Strategic justification of the deal has also been carried out, such as the identification of synergies and matching them to the long-term corporate interests.

2. Company Valuation

Fair valuations have been determined using financial models and analysis of previous transactions to create precedent and discounted cash flow (DCF) products to determine fair valuations. Valuation services offered through mergers and acquisitions services have helped stakeholders understand both standalone and synergistic values.

3. Diligence Organization

Investment banks have orchestrated due diligence processes that have been financial, legal, tax, commercial, and operational in nature. Outside experts in third-party companies are often called in to do the specialist work, and it has been managed centrally by the bank on matters of coordination and integration of the results.

4. A Deal Plan

Designers structured equity swaps along with asset purchases, stock leveraged buyouts, equity mergers, and stock-for-stock mergers. They considered taxation, regulatory compliance, and future exit routes during the process.

5. Negotiation & Execution

The investment bank has facilitated the discussion of the price, payment terms, representations, warranties, and indemnities. It has also addressed legal documentation, coordination with various parties, including lawyers, accountants, regulators, etc.

At every phase, Strategic insights have always been combined with tactical focus at each step to make sure that there is not only alignment between stakeholders but also an optimal result.

Buy-Side vs. Sell-Side Advisory in M&A

Investment banks can be retained by either party in a transaction. They provide two distinct, yet related, services:

Buy-Side Advisory

On the buy side, the investment bank has worked with companies or investors looking to acquire other businesses. This has involved:

• Initial outreach and maintaining confidentiality.
• Conducting valuation and detailed business project operations. 
• Negotiating and ensuring the transaction closes. 
• Buy-side engagements are usually sought after by the private equity firms, large enterprises, or multinational companies, looking to acquire to expand.

Sell-Side Advisory

With sell-side engagements, the investment bank has been retained by companies, founders, or institutional shareholders looking to sell either a whole or partial stake in their company. Their responsibilities included:

• Creating investment teasers and information memorandum
• Run competitive bidding processes
• Filtering potential buyers and communicating
• Managing due diligence and closing the transaction

During the sell-side process, keeping information private, working efficiently, and realising value have been the main priorities.

Buy-side modeling vs sell-side modeling :

Investment bankers on the sell-side and private equity professionals on the buy-side build M&A models to estimate transactions. Bankers create models that they share with potential buyers of the business. These models must be highly presentable, easy to understand, and usable by all involved parties. Although this model will be provided to firms on the buy side by the banks, they will usually develop their financial model to have 100 percent assurance in the analysis.

Why Companies Rely on Investment Banks for M&A?

M&A are always a high-stakes transaction. They require financial expertise, industry comprehension, and negotiation skills. Organizations, especially ones with limited internal resources, have relied upon investment banks for:

1. Expertise

All relevant disciplines – finance, the law, tax, and regulation have been roofed under one supplier. They have read market dynamics and the mood of investors to help companies make better decisions.

2. Access

Relationships with types of investors, corporate, and private equity firms have allowed investment banks to develop qualified leads and generate competition in the auction.

3. Confidentiality

Investment banks have handled sensitive information discreetly to prevent speculation in the marketplace and disruption internally. They have consistently enforced NDAs are more importantly controlled who sees the buyers’ list so companies can maintain their strategic opportunities for as long as possible.

4. Efficiency

They have managed the timeline, from documentation all the way through to scheduling and negotiation. We expedited processes that typically take months, reducing the risk of execution

5. Negotiation Power

Effective support for companies during the negotiations has been provided by the bankers as strategic advisors – this added the correct dose of neutrality. This has enabled companies to have the proper level of rational pricing discussions and improved negotiations.

Conclusion: 

The world of M&A has been shaped by the shifting markets, changing regulations, and increasing investor movements of the day. In this complicated environment, successful deal results have depended heavily on someone skilled in the advisory role that investment banking services provide.

For businesses, at any stage, whether it’s mergers, acquisitions, or fundraising, an accurate valuation process goes hand-in-hand with effective deal structure and strategy! 

Try FundTQ’s free business valuation calculator to get instant insights, industry benchmarks, and investor-ready reports.

Key Takeaways:

• Companies merge through strategic processes, and acquisitions result in changes of ownership carried out deliberately.
• An investment bank is very important in all the processes, such as sourcing, valuation, due diligence, structuring, and execution of the deals.
• Investment banks are advisers on either the buy-side or the sell-side.
• Companies rely on investment banks for their expertise, market access, confidentiality, efficiency, and bargaining power.

FAQs

1. What is the role of investment banks in M&A?
Investment banks recommend mergers, design them, and provide the same. They also give valuation, due diligence coordination, strategic analysis, and due diligence to the negotiations. 

2. What does a buy-side value-added investment bank do in M&A?
Added value was brought by them, such as identifying the appropriate acquisition targets, negotiating acceptable terms, and finally seeing that due diligence and the closing of the transaction take place well. 

3. Is it just large companies that can avail of M&A services?
Mid-market and emerging companies actively engage mergers and acquisition advisory services to pursue strategic expansion, exit strategies, or reorganisations.

4. What then is the difference between consulting and investment banking when it comes to M&A?
Investment banks specialise in making deals, valuations, and capital structuring. The consulting firms, in turn, are more interested in the post-merger integration and business strategy. 

5. Is it possible to use investment banks in cross-border M&A?
Yes. Global investment banks have capabilities of crossing borders, such as compliance knowledge, cultural alignment assistance, and a global network of investors. 

Understanding the financial worth of a business is crucial in scenarios such as fundraising, planning equity distribution, or preparing for mergers and acquisitions. One of the most convenient ways to access this data today is through a business valuation report online. Although traditionally, valuations were achieved by contracting financial consultants, they are currently becoming available in the form of free digital tools, all of which can make the valuations accessible to early-stage founders and small businesses.

This article explores what a business valuation report is, how free tools like FundTQ – Asia’s Leading startup valuation calculator work, and how these insights can attract investors, prepare pitch decks, and raise funds confidently.

What Is a Business Valuation Report?

A business valuation report is a document created professionally to represent the estimated financial worth of a company. It not only gives the business valuation in a monetary value, but it also details the methodologies, assumptions, and growth projections used in the calculation.

It is commonly required during:

• Fundraising for startups in India or abroad
• Discussions with investment banking services
• Equity sharing between co-founders or workers
• Strategic plans regarding expansion or exit
• The use of regulations or taxation

In most valuation reports, methods such as discounted cash flow (DCF), comparables, revenue multiples, or post-money valuation models are applied. The output is presented as an estimated value range, supported by assumptions and benchmarks.

Can a Business Valuation Report Be Obtained for Free?

Yes, free valuation tools are being offered by various fintech and startup-support platforms. These reports are auto-generated using sophisticated calculators as opposed to being prepared manually. The founders should not include any other details besides the bare minimum, such as revenue, growth rate, and market potential. Based on this little information, a valuation report can be created on the fly.

The estimate provided by a tool might not provide as accurate a result as the one that can be created by professionals, but such reports are regarded to be equally accurate during decision-making at earlier stages, preliminary negotiations with investors, and long-term planning

Startup valuation without revenue can also be performed using model-based logic built into such platforms.

Previously, valuations were typically conducted by professionals, with fees ranging between ₹50,000 and ₹2 lakh. However, with the emergence of these tools, even startups without current revenue can be valued using qualitative models such as the Berkus method, which assigns value to ideas, teams, and traction, the Scorecard method, which compares startups to industry averages, or quantitative techniques like the Discounted Cash Flow (DCF) model, which calculates value based on projected future cash flows.

Best Free Business Valuation Software

1. FundTQ – Asia’s Leading Startup Valuation Calculator

FundTQ has been recognized for providing one of the most detailed and startup-friendly business valuation reports online.  Currently trusted by over 25,000 early-stage founders, the platform has been streamlined to be used by the Indian and Southeast Asian pre-revenue and early-revenue startups.

Key Features:

• AI has enhanced valuation
• Models of a given type of startups are applied (D2C, SaaS, marketplace, etc.)
• Reports are available in a  PDF exportable format
• Post-money valuation insights are included
• Specific industry-based benchmarks are offered

In addition to valuation, the tool has been integrated with fundraising checklists, pitch templates, and investor readiness assessments. It is especially relevant for those pursuing fundraising for startups or engaging in startup fundraising in gurugram, Bengaluru, or Mumbai.

2. Equidam

A global tool in which the valuation is computed by five blended methods. Although it has a free version that provides basic data, complete reports can be bought.

3. StartupValuation.io

A  lightweight calculator that makes an approximate estimate based on the input reasoning. Simple assumptions are utilised, but no breakdowns on the details are given.

What Can Be Expected in a Free Business Valuation Report?

Based on a free valuation tool, as a founder, you will be issued with a document that contains:

• Estimated Business Value

A range of values can be determined (e.g.,₹1.8–2.4 crore) on the basis of moving inputs like revenue, expense, and market.

• Industry Benchmarks

The data in terms of sector is compared so that you understand the place of your startup in terms of growth, margins, and capital requirements.

• Explanation of the Valuation Model Used

Information regarding whether the calculation was made using a DCF, Scorecard, Berkus or multiple-based model.

• Assumptions and Inputs Summary

Such aspects as revenue growth, CAC/LTV ratio, operating margin, and cash runway are also clearly provided.

• Fundraising Impact

If funding is being planned, post-money valuation figures are included to show expected dilution and valuation after fundraising.

How Should Free Valuation Tools Be Utilized?

Free valuation tools are very effective; however, their effective utilization comes when they are implemented strategically. The following is how the maximum value can be obtained:

1. Investor Discussions Should Be Initiated Using the Report

The report can be attached to your pitch deck or included as part of your outreach to top venture capital firms.

2. Updates Should Be Made Frequently

It is suggested that every 30 to 45 days, the report should be regenerated because startups quickly react to market encounters.

3. Competitor Analysis Should Be Conducted

The report offers benchmarks that should be contrasted with other startups in your industry.

4. Report Data Should Be Aligned with Pitch Deck Slides

Valuation assumptions and revenue projections should be on the same line as those in the deck to be credible.

When these actions are taken, valuation becomes a growth tool rather than just a financial figure.

Free Pitch Deck Templates to Enhance Fundraising

In addition to the valuation report, a number of tools provide free resources to help startups raise funds. At FundTQ, founders get a series of high-conversion pitch deck templates offered very freely.

Templates Are Designed To:

• Align your messaging with valuation insights
  
• Highlight traction and projections clearly
  
• Avoid common pitch deck mistakes
  
• Meet investor expectations for fundraising for startups in India
  

Included Templates (available on FundTQ.com):

• Investor Pitch
  
• B2B SaaS Fundraising Deck
  
• D2C Pitch Template
  
• One-Page Teaser
  
• Presentation of a Growth-Stage Startup
•  Excel Financial Forecasting Template
  
• Problem–Solution–Market–Model Slide Kit

These templates are being widely used by those preparing for startup fundraising in Gurugram and other metro ecosystems.

Conclusion :

Ready to get your free business valuation report? Start now with FundTQ and explore pitch deck templates to supercharge your fundraising

These reports:

• Assistance in finding a start-up worth
• Provide realistic expectations for fundraising for startups
• Cut the cost of using costly consultants
• Bring in transparency amongst founders and investors

To get professional assistance, larger rounds of funding or a due diligence event must be enlisted. However, in the case of early-stage ventures, business valuation report online are a decent place to start, and combined with the startup valuation calculator tools, such as FundTQ.

Key takeaways:

1. Business Valuation Report online is a strategic tool for startups and SMEs by providing information on the projected market value, potential funding prospects as well as investor preparedness, at an early stage of operation without incurring expenses on paid consultancy. Free business valuation tool, such as FundTQ – Asia’s Leading startup valuation calculator, allow entrepreneurs to generate professionally structured valuation reports based on proven methodologies like DCF, VC method, and revenue multiples.

2. These free reports normally have:

• Approximate business value (pre-money valuation/post-money valuation),
• Industry benchmarks,
• Financial assumptions
• Model explanations are used for calculation.
• These free tools help to establish a valid basis of pitching, financial planning, and strategic decision-making, although, needless to say, they cannot be taken as a replacement for a large-scale due diligence or professional audit.

 3. The other resource that FundTQ provides is free pitch deck templates, which can assist founders in aligning their valuation story with what investors expect, as well as help streamline fundraising paperwork.

4. Even startups that are at pre-revenue or idea stage can apply these tools to provide indicative valuations by concentrating on market size, innovation, and founder profiles so that they can raise funds even before they necessarily have any traction.

5. When used alongside resources like the fundraising checklist access to top venture capital firms, and localized support such as Startup fundraising in Gurugram, the free valuation report, becomes a powerful launchpad for early capital.

6. Free valuation reports are considered the best recommendation to the founders looking to start their journey into Indian and overall global capital systems, providing them not only with some proper organization of insights alongside visibility but also validation at zero cost.

FAQs

1.Is a free valuation report as good as a paid one?

They are fairly trustworthy in the preliminary planning. Such ascertained tools as FundTQ employ an approved startup valuation process to provide realistic figures.

2. Can a valuation report be used when meeting investors?

Yes. Many founders share their valuation reports in pitch meetings or emails to showcase credibility and preparation

3. Do these tools work for companies that do not generate revenue, yet?

Yes. Models like Berkus or Scorecard allow startup valuation without revenue using qualitative and projected factors.

4. Do these tools need the contribution of an expert?

No. The majority of the platforms do not require a financial knowledge base to use them by founders.

5. Does such a tool have pitch support or templates?

Yes. Platforms like FundTQ also offer fundraising checklists, pitch decks,business valuation report online, and advisory resources tailored for early-stage ventures.

In competitive startup ecosystem valuation has ceased being merely a number but, having become a strategic asset. As a founder, it is very necessary to understand the true value of their venture as a confidence builder to investors, and fetching the right capital to invest in the venture and making informed business decisions at all stages of maturity. To support this need, FundTQ offers a robust, free-to-use, and founder-focused Startup Valuation Calculator, designed specifically for the nuances of the Asian market. Whether you’re preparing for first startup funding, validating your financials for a VC pitch, or refining your business roadmap, this intelligent tool delivers reliable, real-time valuation within minutes empowering startups with clarity, credibility, and confidence.

Why Accurate Valuation Matters for Startups?

Valuing your startup is not all about attaching a price on your idea. It is all about showing the world something believable based on numbers. That is why it is important:

Establish Trust amongst Investors
A well-grounded valuation enhances trust among investors by showcasing a balanced view of potential and risk. It demonstrates your readiness for fundraising for startups in India and beyond.

Make Attainable Goals
Getting to know your value will enable you to achieve fundraising goals that you are able to raise and select the appropriate instrument, whether it is equality, debt or convertible notes.

Make It Easy to Negotiate
Data-driven valuation puts founders on the same level with investors, eliminating confusion about valued prices and shortening decision time..

Obtain Transparency and Clarity
Regardless of whether you opt to employ talent through stock options or giving them founder equity it is easier when the valuation is proper to communicate ownership, and expectations.

With fundraising for startups becoming more competitive across Asia, having a valuation tool that’s tailored to local markets is no longer optional rather it’s essential.

What Is FundTQ’s Startup Valuation Calculator?

Startup Valuation Calculator by FundTQ is the next-gen tool developed solely by founders of the Asian region. It harmonies the process between the international valuation techniques and local start-up realities.

Instant Real Time Valuation in Minutes

There is no waiting for consultants. It only takes a few minutes to put in your business data and get a professionally prepared court-ready data-driven valuation report at any place and around the clock.

Asian Markets oriented

FundTQ actively tailors startup valuations to dynamic markets like India, Southeast Asia, and MENA by accounting for local traction, regulatory frameworks, and regional cost structures.

Robust Valuation Technique

The tool uses valuation methods that are globally accepted and among them include:

• Discounted CashFlow (DCF)
• Risk Factor aggregation.
• Scorecard Valuation
• Berkus Method
• Venture Capital Kaizen method

Also Read: Business Valuation Simplified: Step-by-Step with Online Calculators

Free & User Friendly

Unlike complex business valuation software, FundTQ’s platform is intuitive, educational, and completely free,making it accessible for all founders, regardless of financial background.

Step-by-Step Walk through of FundTQ’s Valuation Calculator:

So, here are four simple steps to the accurate startup valuation:

1 Step -Enter Business Fundamentals

• Provide such details as industry, pre or post-revenue stage of business, business model (B2B, B2C) and the strength of your team.

 2 Step – Advanced Metrics (Optional)

• Add such financial KPIs as monthly burn rate, annual recurring revenue (ARR), EBITDA, customer acquisition cost (CAC), and market size. These assist in fine tuning of precision.

3 Step -Select Valuation Method (s)

Choose one, or several methods depending on your level:

• Early-stage? completely Try Berkus or Scorecard Method.
• Revenue-generating? Just use DCF or VC Method
• Uncertain future? Carry out the Risk Factor Summation.

4 Step- Create Valuation Report

Get a report that you can download containing:

• Rationale-valuation range
• Methodology breakdown
• Best-case and worst-case sensitivity analysis We perform a best-case and worst-case sensitivity analysis because we want to draw on the total experience of all the companies that have successfully implemented S.
• Investor-readiness score

This makes it easier to prepare for fundraising for startups in India and beyond.

Why FundTQ Stands Out?

There are a lot of start up tools available in the market, so why use FundTQ startup valuation calculator?

Asia Driven Algorithm

Regional factors are usually ignored in global calculators. FundTQ incorporates region-tailored growth benchmarks, exit multiples as well as risk premiums.

Various Valuation Models

You can compare 4 6 states and come up with a valid valuation range, being dependent on one methodology will not present an accurate valuation range.

Educational Insights

Founders receive contextual explanations for each valuation figure, making it a great learning resource for those new to investment banking concepts.

No Hidden Cost Policy

There are no paywalls, allowance on surprise charges. The valuation calculator of FundTQ is and will remain free to startups.

Secure and Confidential

Every data is encrypted, and your reporting on valuations is available to you. Your confidential data would not be at risk.

Real-World Impact by Industry:

FundTQ’s valuation tool has been used by over 10,000 startups across diverse sectors. Here’s a glimpse of how it’s driving value across industries:

Regardless of your vertical, FundTQ assists in checking your valuation against the realistic market expectations.

How to Use It Effectively?

Maximize the value of FundTQ’s startup Valuation Calculator tool by following these key guidelines:

Keep Your Financials Ready

Although you may not be able to build out detailed modeling at the early stages of building your company, compiling some simple estimates (such as what you estimate your revenue to be, the breakdown of costs, and burn rate) is going to sharpen up your outcome.

Understand the Methods

The tool tells about every approach, still, it is helpful to know a bit about valuation models. This makes your story more strong at investor meetings.

Use the Report in Pitch Decks

In your pitch deck, you can include the final valuation report, to make the investor trust you. Financial viability is excellent to mark.

 Recalculate Quarterly

Your valuation has to grow with your startup. Track the effects of the growth of your business on value on the calculator on a regular basis.

FAQs About Business Valuation Software:

Q1: Is FundTQ valuation calculator a permanently free tool?

Yes, it is constructed with founders in mind and is also free of charge–no trials and cost entanglements.

Q2: Is it applicable to several startups?

Absolutely. You are able to create numerous reports in the industry and at varying stages of funding.

Q3: What can I do when my startup does not bring revenue?

No problem! FundTQ maintains pre-revenue valuation schemes such as Berkus and Scorecard.

Q4: Is it applicable outside India?

Sure, it is optimized to be used in Asia (Southeast Asia, UAE, and so on), but its practices are approved worldwide.

Q5: Is this an alternative to recruiting a financial advisor?

Not entirely. This can be regarded as an intelligent way to begin. For deeper negotiations and equity structuring, pairing it with expert investment banking advice is recommended.

Conclusion:

Valuation in the case of startups is usually viewed as intricate, subjective and scary. However, it does not need to be so with the Startup Valuation Calculator provided by FundTQ. Within minutes, you will have an investor ready, credible valuation that captures your business potential and the situation in the area you are doing business in. Whether you’re preparing for first startup funding, understanding your current growth trajectory, or exploring future rounds of fundraising for startups, this tool empowers you with clarity and confidence.

Valuing your business is easy when done with FundTQ. The valuation journey starts today: Ensure that your business valuation is accurate and representative by using our free-to-use startup valuation solution, specifically, designed to be founder-friendly. Want to understand how this ties into the broader future of investment banking? Accurate startup valuation is progressively being the start line of information based capital implementation conclusions.

Raising capital is one of the most critical and often most confusing challenges faced by early-stage founders. Questions such as ‘When should I raise my first round?’ or ‘What do investors expect at each stage?’ often go unanswered due to a lack of a clear roadmap.” Clarity is intended to be provided by this article to the Startup Funding Stages, helping founders understand what each round involves, who the typical investors are, what expectations they have, and how to position the company for success at each stage.

Whether you have an idea to prove, an IPO to plan with, or even funds that you want to raise, Insights needed to raise the capital are provided by this guide.

By the end of this guide,a clear concept will be received by you about what the 7 major Startup Funding Stages, between the Pre-Seed and IPO labels are and how to ensure that your startup story of growth meets what the investors expect along the way in the fundraising process.

1. Pre-Seed Stage

What Is It?

The pre-seed stage is the initial step of the startup funding stages. The business idea now is at its primary stage. The founders might be in the process of building a minimal viable product (MVP), a market research, or need to validate their idea.

Sources of Funding:

• Personal savings
•  Friends  and family
• Accelerators/incubators Startups
• Government grants or academic finances

Investor Expectations:

The investors during this phase are placing their bets at the  founder’s vision and abilities and not on hard metrics. 

They typically expect:

• A  compelling idea with real world relevance.
• Founders with domain expertise and commitment
• The preliminary market research or problem verification

Tips:

• Focus on details how the problem is stated and what is  your distinctive solution.
• Create a functional and  simple MVP or otherwise a prototype .enough to demonstrate feasibility
• Attend an accelerator to gain  access to early stage-mentorship and financing.

2. Seed Stage

What Is It?

The seed stage marks the transition from idea to execution. This is where startups are still working on their product, getting early adopters, and refining on their business model .

Sources of Funding:

• Angel investors
• Seed venture capital (VC)/
• Crowdfunding platforms
• Accelerator programs

Investor Expectations:

Seed investors look for market size/market potential and early traction. The critical expectations are the following:

• The working version 1 or the MVP of the product.
• Positive feedback  by the users or pilot outcomes.
• Specification of target market.
• Scalable business revenue model.

Tips:

• Obtain early adopter feedback to prove your product-market fit.
• Create a concise  pitch deck that features the issue, market size, traction and financing requirements.
• Explain how the right amount of funds  will speed up the growth.

3. Series A

What Is It?

The Series A funding is the first major institutional capital that assists startups to optimise their product and establish a solid foundation  to scale.

Sources of Funding:

• Early-stage oriented venture capital firms (VCs)
• Strategic investors in corporations
• Big angel groups

Investor Expectations:

The Series A investors demand a good business model and measurable growth .

They typically expect:

• Product-market fit
• Regular user activity and increases in revenues
• A clear go-to-market strategy
• Key  staff recruitments taken or planned

Tips:

• Focus on traction measurements like the number of active users, retention and revenue per month
• Invest in developing the processes of operation and increasing your market size
• Compose financial forecasts of detailed financial shows and KPIs of performance

Also Read: FCFF vs FCFE – Understanding Key Differences And Applications

4. Series B

What is it?

When startups reach the Series B-stage , they develop the ability to expand  in previously unexplored markets, hire more  employees and grow operations. The product has been tested and it is now time to optimize it with regard to efficiency and market penetrations.

Sources of Funding:

• The larger  venture capital firms.
• Interested parties that include private equity funds that have an interest in growth-stage firms

Investor Expectations:

Investors in series B would like to see proof of scale-up. Their normal expectation is:

• Unit economics and Proven business model
• Increasing retention-based customer base
• Effective avenues of acquiring customers
• Market performance Competitive advantage in the market

Tips:

• Track and report important performance outcomes such as CAC, LTV, burn rate and runway
• Empower leadership through professionals
• Invest money in further marketing, customer service, and product development

Bonus Tip:

5. The Series C and Beyond

What Is It?

Series C and subsequent rounds are meant to expand aggressively, engage in acquiring competitors , or preparing for an eventual IPO. At this point, the startup is already a very well established  company.

Sources of Funding:

• Late-stage VCs
• Hedge funds
• Investment banks
• Corporate investors

Investor Expectations:

These investors seek low-risk, high-return opportunities. What they expect is:

• Large revenues and  high margins
• The geographic expansion plans or the vertical expansion plans
• Acquisition possibility or partnerships
• A preparation exit or strategic exit to the public markets

Tips:

• Make your company competitive as a market leader within its segment.
• Build powerful governance and compliance models.
• Get set to carry out due diligence practices  following the landmark.

6. Mezzanine Financing / Bridge Round

Mezzanine or bridge financing is interim financing between rounds of later stage financing or immediately before IPO. It is used  to address cash flow shortages or finance short term strategy objectives.

 Sources of Funding:

• Convertible debt from Existing investors 
• Venture debt investors or private equity 
• Strategic partners

Investor Expectations:

Bridge round investors demand a definite schedule of liquidity or follow up round.

• Revenue-generating business
• Exit or IPO related defined milestones
• Debt repayment capability (not in case of equity)

Tips:

• Be transparent about the reason for the necessity of the bridge.
• Provide decent convertible terms should equity not be right away available.
• Demonstrate the result of this round in a milestone next step.

Have a look at: My First Startup Funding: What Worked (and What Didn’t)

7. Exit or Initial Public Offering (IPO)

What Is It?

Initial Public Offering (IPO) is a process in which a company that is privately owned issues its stocks on a publicly traded stock market. However, start-ups can take an exit route; through acquisition, merger or management buy-offs.

Sources of Funding:

• Investors in the public market (IPOs)
• Buy out of a corporation or a private equity (in M&A)

Investor Expectations:

At such a level, investors demand a pay to be made on their previous investments. They seek:

• Stable growth of revenues and profits
• Firm market positioning and image Brand recognition
• Expandable operations and riskless operations
• Open corporate governance

Tips:

• Contract with skilled investment bankers and lawyers.
• Standardise your financial reporting to a standard used by the public marketplace.
• When exiting, consider timing  and market conditions.

Final Thoughts

Each and every  phase in the startup funding stages represents a new chapter in your company’s journey offering not just capital, but strategic guidance, networking opportunities, and the validation needed to grow.Although the confusion between bootstrapping and getting ready to embark on an IPO may begin, knowing what investors would like to see at each stage can help the founders have a better guide ahead.

Successful startups do not easily chart straight upwards. However, given adequate preparation and proper alignment of strategy to the expectations of investors as well as adjusting and aligning your strategies, you can make your way through the funding world with great confidence and get the resources needed which will enable you to bring your vision into reality.

The beauty and health care business can be described as thriving with one of the most dynamic segments on the beauty and health care business being on skincare. Whether it is organic serums or AI-enabled customized skin care regimes, consumers have never been more conscious and caring about their skin before. In case you are a start-up business wondering about what will be next to start a brand in skincare, now is your time. But one of the most important challenges in launching a skincare startup is to obtain funds.

This manual practically covers all major issues linked to fundraising for startups in India with an exclusive focus on the skincare sector-from planning, pitching, scaling, to maintaining. Thus, whether it’s the very first seed funding for your startup or consideration towards investment banking services, or perhaps going the route of crowdfunding, this map will easily help you through its intricacies.

Why Are Skincare Startups a Hot Investment?

It is estimated that the worldwide skincare industry would hit the mark of over 200 billion by; 2026. There are various factors that will develop homegrown brand opportunity like the experience of increased disposable income in India, the wellness obsession of Gen Z and their consumer first approach to digital space.

Here’s why investors are increasingly drawn to skincare startups:

• Large Margins: The skincare business is sometimes associated with a large profit-margin, depending on a niche aspect such as clean beauty or vegan, or Ayurvedic line.
• Repeat Purchases: Skincare items need to be replenished on a regular basis as opposed to technology-related and fashion-related products, so they are always in demand.
• D2C Model Compatibility: Digital media enable the brands to sell their products to the users directly and without involving third-party.
• Influencer Marketing: Skincare is a purely visual product and it applies well to influencer and content marketing, which makes it appealing to contemporary investors.

How Much Funding Do You Need?

It is best to evaluate your funding needs before you proceed to identify possible sources of funds. The start-up costs will depend on what business model you target to use, whether you intend to produce your goods, white-label suppliers, or create only e-commerce brand.

I give this a rough breakdown:

Depending on your scale, first startup funding requirements can range from ₹10 lakhs to ₹50 lakhs. It can go a long way and make your pitch stronger when you are clear about these figures.

Top Funding Options for Skincare Startups

As a beauty founder, you’re not limited to a single funding route. Here are some options to explore:

1. Angel Investors

Perfect in the new, young skincare brands. They provide capital, as well as mentoring. One should find an angel with experience in FMCG, wellness, or D2C brands.

2. Venture Capital

VCs come when you have traction product-market fit, expansive customer base or a well-established brand equity. Venture Capitalists in India deal with consumer and lifestyle.

3. Startup Incubators/Accelerators

Such programs include Sequoia Surge, India Accelerator, or NSRCEL by IIM Bangalore which are funded programs as well as provide mentorship and access to a network of investors.

4. Bank Loans & MSME Schemes

Indian government and financial organizations provide business credits according to MSME and Stand-Up India programs: they are applicable to manufacturing-based companies in the skincare sector.

5. Investment Banking Services

When you’re ready to raise larger rounds (Series A or beyond), consider partnering with boutique investment banking services specializing in consumer brands and startup capital raising.

Creating a Skincare Business Plan That Attracts Investors

Loved by investors is clearance. An effective business plan is an indicator that you are not ignorant of the market and you have a scalable business.

Your Skincare Business First regarding are These Selected main points in Your Skincare business Plan:

• Problem and Solution: What solutions does your brand solve to issues in the skin? And why is it superior to what is available?
• Target Audience: Who is the target? Millennials? Gen Z? Men?
• Market Research:It includes industry trends, industry size, industry competition and white spaces.
• Product Strategy: Ingredients + certifications (no cruelty-free, organic) + the line development of products.
• Revenue Model: Margins, channels of sale and pricing.
• Marketing Plan: The influencer, online advertisement, real world events.
• Finance: How much are you asking, and what is it going to be used on?
• Financial Forecasts: 3 year revenues estimate, break even analysis.

The better your plan is, the more willing investors would be to invest in your startup.

Building a Minimum Viable Product (MVP)

Your proof of concept would be an MVP. For skincare startups, this usually means developing a small batch of hero products to test market response.

MVP Creation Skincare Tips:

• Utilize contract manufactures to cut the cost.
• Pick 12 products or put both energy into 12 products (e.g. a face serum and a cleanser).
• Undertake dermatology tests and qualifications.
• Offer tests to those interested or beta testers.

A successful MVP can be your ticket to first startup funding and traction with D2C customers.

How to Pitch Your Skincare Brand to Investors?

The pitch is a decisive part in your funding process.

Keys of an Excellent Pitch Deck:

• Vision Statement: Build on your Why.
• Market Opportunity: Allow one to demonstrate the amount, as well as, the possibilities of the skincare industry.
• Your Unique Solution:  Your innovation, either ingredient, personalization or sustainability.
• Traction: success of the MVP, revenue, customer love, testimonials.
• Team: Present founders and specialists in the sphere.
• Ask:  How many funds, to what?

Practice your pitch and tailor it to different types of investors some care more about numbers, others about brand story.

Strategies Of Crowdfunding That Work:

Crowdfunding is an awesome method to prepare your item, comprehend business viability and get financing without sharing responsibility.

To consider:

• Ketto and Wishberry of Indian projects.
• Kickstarter and Indiegogo to reach out to the world.

Tips:

• Make utterly enticing campaign pages.
• Storytelling- demonstrate your path.
• Provide rewards and special care packages.
• Use influencer shout outs to get traffic.
• This path does not only attract capital but also wins a community.

Grants and Competitions for Beauty Entrepreneurs:

In India, women and beauty entrepreneurs have access to many programs that they can rely on.

There are Opportunities such as:

• L’Oréal Women in Science and Business Awards
• Tata social enterprise challenge
• Startup India Seed fund scheme
• FICCI FLO Women Start up Awards

Winning grants or competitions not only funds your skincare startup but also helps in building  credibility and press visibility.

Bonus Tip:

Bootstrapping: Advantages & Disadvantages

Many successful skincare startups like Juicy Chemistry and Minimalist began by bootstrapping—self-funding the business until revenues kicked in.

Pros:

• Complete ownership of your brand.
• Develop financial control.
• Narrow-based growth that is organic.

Cons:

• Small budget in marketing and staffing.
• Slower scaling.
• Risk of high personal finance.

A decent place to start would be bootstrapping in case you are not investor ready but have a great MVP and vision.

Scaling After Funding

After you secure your first round, then the game starts.

Focus Areas:

• Inventory Management: It is important to have regular availability of products.
• Brand awareness: Invest on Influencer campaigns, PR and video content.
• Technology: Modernise the website, web-based customer relationship management and supply chain systems.
• Team Building: Recruit professionals of marketing, R&D and customer service.
• New Markets: Enter second-tier cities or overseas shipments.

A constant need to determine such metrics as CAC, LTV, and ROAS could confirm the operational capital efficiency of the given company since any investor considers such a factor after making the investment. 

Conclusion:

Making and scaling a skincare company does not just imply having an excellent product; it means building a brand around real issues with which the population has some emotional affinity and which grows sustainably. First startup funding, investment banking services, and crowdfunding should all be seen in light of the founder’s long-term vision.

There could be no better time to start with the growing beauty market in India, the interest of investors in wellness, and the population of digital-first customers. Always be ready, sell intelligently and keep on training. The future of investment banking and startup capital is more founder-friendly than ever—go claim your share.

One of the most defining moments to a startup is the process of raising capital. Although passion and an innovative idea is the key, affectionately, cash is the reason that idea can become a successful company. But investors do not only invest in ideas, they investing with businesses that are ready, organised, and persuasive. Therefore, before you start reaching out to investors, you must have a thorough fundraising checklist.

This post provides a thorough fundraising checklist to make sure you have everything ready before meeting with possible investors, including data, documents, clarity, and confidence.

Why Do You Need a Fundraising Checklist?

Going to investors unprepared sends a message to investors that you are not ready and well prepared to get investments as well as create a bad image to your startup within the ecosystem. A fundraising checklist helps you:

• Perpetuate start up fundraising blunders by one better prepared than others on tiny bits of advice
• Increase documentation order to improve investor confidence
• Eliminate holes in your business plan
• Make your company look professional with a convincing power
• Accelerate the due diligence process after interest of investor is generated

Regardless of the funding process you are approaching (seed funding, angel investment, and Series A funding), the checklist will make your effort stand out among the crowd and make it easier to find a way into the bigger picture.

1. Define Your Fundraising Goals

Begin by simply stating how much funds you desire to raise and why. You should base your target in fundraising on:

• The stage the startup is VM pre-revenue, MVP, scaling
• The amount of capital needed to achieve one mile point (e.g. product launch, user acquisition, break-even point)
• A 12 months, 18 month runway

Checklist Items:

• Amount you are raising
•   Use of funds breakdown (tech, marketing, hiring, etc.)
• Categories for spending money (tech, marketing, hiring, etc.)
•  Types of fundraising include debt, SAFEs, convertible notes, and equity.

2. Get Your Financials in Order.

No startup is going to receive funding when the investors cannot support the business with reasonable financial arguments. Make elaborate financial records and forecasts.

Checklist Items:

• Profit & Loss (P&L) statement (the previous 12-24 months, where applicable)
• Cash flows statement
• Balance sheet
• The 3-5 year budgeted financial statements
• Unit economics (CAC, LTV, gross margin etc.)
• Break even analysis

Use startup tools such as FundTQ or projections templates to make them as accurate and investor ready.

3. Build a Solid Business Plan

A business plan is your blueprint. It shows investors that you understand your market, customers, competition, and growth potential.

Checklist Items:

• Executive summary
• Market size and opportunity
• Problem and solution overview
• Product/Service details
• Revenue model
• Go-to-market strategy
• Competitive analysis
• SWOT analysis
• Team structure

Remember, the business plan is not just a formality—it’s a decision-making tool for investors.

4. Write a Winning Pitch Deck

A strong pitch is your golden card to an even meeting with investors. It ought to be brief, graphic and convincing.

Checklist items (usually 10-12 slides):

• Overview and mission
• Solving the problem and the issue
• Market opportunity
• Printed product demo/screenshots
• Business model
• Traction and milestones
• Marketing and sales strategy
•  Team
•  Financials
• Question (how much money and use)

Some of the pitch deck errors to avoid include having too many on-screen words, omitting the traction or being ambiguous about your finances.

5. Provide a Legislation Base

Investors are going to demand legal compliance within your startup. Make sure that your business is incorporated and does have the necessary registrations.

Checklist Items:

• Company incorporation documents (MoA, AoA, PAN, TAN)
• Goodwill, founders agreement and equity dividing
• Cap table (realistic and actualized)
• Licensing and ownership of IPs
• Contracts of employees and NDA

6. Present Traction and Metrics

Investors are not only interested in how to validate your growth, but they want to see some indicators of growth or validation even though you are at the MVP or early revenue stage.

Checklist Items:

• Active monthly users (MAU) / Daily active users (DAU)
• Sales or preorders
• Case studies or testimonies made by customers
• Retention/churn
• The downloading of apps or visits to websites
• Collaboration or test customers

These measurements validate that you fit within your market and eliminate the perceived risk in the eyes of the investor.

7. Understand Your Strategy on Valuation

A practical sense of the value of your startup is what you must have (at least in the case of equity financing).

Checklist Items:

• Present Fair valuation (based on revenue, number of users or similar startups)
• Post-money and pre-money valuation knowledge
• Rate of equity you are offering
• Option pools (in case of any)
• Rationale of valuation

It is recommended to consider a startup valuation software or even valuation experts to develop a possible solution to defend.

8. Get ready to conduct Due Diligence

After a term sheet has been provided, investors will get down to the bone. Preparation of due diligence materials is time-saving and creates trust.

Checklist Items:

• Due diligence data room (Google drive or dropbox)
• Having all financial documents at one place
• Access to product demo
• KYC Founders
• Trademarks or patent registrations
• Minutes and board resolutions
• Previous fundraising records (in case of any)

Another pro tip is to put testimonials, pitch videos, and product roadmap to make a difference.

9. Develop Target Investor List

Just don’t spray and pray. Find investors who have invested in startups or sectors of the same stage of development. Make your story match their interests.

Checklist Items:

• Angel investments and VCs in the same business sphere
• Local ecosystem actors (e.g. incubators, accelerators in India)
• Mentors or advisors to carry out warm introductions
• CRM, or tracking sheet (with the contact status, feedback, etc.) of the investor

Check out other platforms (AngelList, LetsVenture, or LinkedIn) to research and find relevant investors.

10. Practice Your Pitch to Investors

You can get the best documents but poor delivery can screw you up. Practice is the right way to go.

Checklist Items:

•  Pitch script of 10 12 minutes
•  Expected Q and A (market, financial and gaps in the team)
•  Backup deck of deep-dive sessions
•  Pitch sessions to mentor or startup communities
•  Storytelling device, Why you, Why now, Why this product?

The investors will invest in teams as much as they will invest in ideas. Be self assured, articulate and teachable.

FundTQ? A Smart Tool for Modern Startup Fundraising

As non-professional investors get more choice in what they invest in, and especially when you need to attempt a preliminary test of investment, it is not enough to have a nice pitch, but rather, data, structure and strategic positioning. That’s where FundTQ comes in.

FundTQ is a next-generation fundraising intelligence platform built specifically for startups looking to raise capital in a smarter, faster, and more organized way. It is a digital fundraising assistant that helps its founders manage not just their fundraising materials but also finds them the correct investors, better tells their valuation story, and tracks their whole funding process.

Who Should Use FundTQ?

• First-time startups still in the early stage
• Founders having some problems in creating the pitch deck or valuation
• Startups in the growth stage seeking focused access to investors
• Indian startups that want to raise funds aligned with compliance

Conclusion:

FundTQ transforms how founders approach fundraising—from confusion to confidence. By integrating financial insights, investor targeting, and structured preparation in one platform, FundTQ equips startups to raise capital like pros.

If you’re starting your fundraising journey, adding FundTQ to your toolkit is one of the smartest moves you can make.

Making money is not all there is to fundraising, there is relationship, preparedness, and consideration.Investors and shareholders want structure, vision, and dedication.

FAQs 

Q1: What is a startup fundraising checklist?

A fundraising checklist is a step-by-step list of key items (documents, metrics, strategies) a startup should prepare before reaching out to investors.

Q2: Why is a fundraising checklist important?

It provides the preparedness, builds up the investor confidence, prevents legal/financial errors, and accelerates the fundraising process.

Q3: What are some of the documents that I need to prepare in order to meet investors?

These will include your pitch deck, your business plans, your financials, the cap table, legal documents and traction data.

Q4: What will be the amount of funding requested?

Raise sufficient to last 12-18 months runway or to your next milestone (a product, revenue or team milestone).

Q5: Which are the common pitfalls to avoid when fundraising a startup?

One of the pitfalls is overestimation of valuation, underdeveloped financials, poor articulation of funds use, and ineffective pitch deck.

For many founders, the business plan appears an exercise that can only impress the investors. However, in the real sense the importance of a business plan plays a much bigger role than just fundraising. A business plan is your guiding light, an attempt to help you and those that surround you deftly navigate the often murky waters that is startup life. First time startup, bootstrapping your business to the next level, or scaling an SME that is on the rise, every business requires a good foundation in the form of planning to achieve success.

There are a few reasons why a business plan is critical; not only to attract investment, but to establish an effective and successful business, one that is aimed at developing sustainably over time and one that can grow.

Let’s explore what makes a business plan crucial!

What is a Business Plan?

A business plan is an organised text, which contains goals of the business and the plan that needs to be followed to achieve them. It presents all things such as your value proposal and product direction, market research, and finances forecasts.

It is not so much a document but a living blueprint of what you understand of your business, the market you are venturing into and how you plan to get profitable. Being a medical equipment startup or a SaaS to SMEs, the importance of a business plan will allow you to make your assumptions, monitor the progress achieved, and clearly define the direction of work in front of all stakeholders.

The Importance of Business Plan for Founders

1. Clarity of Vision

It is not only a matter of having a dream. Founders usually have a large idea but they do not think in a structured way. A business plan compels you to state your vision, mission and values. It provides answers to such essential questions such as:

• What are we constructing?
• Why now?
• Whom are we solving?

This quality can avoid common fundraising mistakes as imprecision around your product-market fit or the inability to explain a compelling why now?

2. Structured Strategy:

An elaborate business plan will enable you to shred your vision into manageable business steps. It enables you to establish milestones, allocation of duties as well as short and long-term objectives. When combined with models such as SME Growth Strategies, it presents a road map to growth, alliances and expand ability.

3. Financial Planning & Forecasting:

It is important to know your burn rate, runway, and projected revenues way before your first startup funding. A business plan should contain a sound financial model as it will enable you to determine whether the venture is feasible or not.

In case of startup valuation with revenue-free, the presence of financial projections derived using relevant market data and anticipated traction is well-taken to be the source of post money valuation and further rounds of financing.

4. Internal Alignment:

It is also incongruity that cannot be avoided as teams expand. A business plan makes sure that all the people involved in business including co-founders and even interns are doing the same mission together. It establishes transparency in terms of goals and measurements. In the seed funding process, and growing teams, this alignment is a game changer.

5. Fundraising & Investor Readiness:

Naturally, the main role of a business plan will be to attract investors. Whether it is an angel investor, the leading venture capital firms, no one is going to take seriously what you are saying without a plan that shows your opportunity, moat and monetization.

With a business plan, it becomes simpler to coordinate the accounts of your story with your pitch deck,reducing pitch deck mistakes and increasing investors’ trust. It will also assist you to maintain better contact  with investment banks or advisors who provide investment banking services.

The Importance of Business Plan for Long-Term Growth

A business plan does not only entail the launching but it also matures with the business. It is important to note that companies fail not because of poor ideas but rather they fail because of poor execution. A business plan helps long-term growth in the following way:

Example:

Imagine a medical device startup  that offers medical devices in the market and wants to go global. Having a laid-out plan, the founders are in a position to evaluate the regulatory bottlenecks, plan capital spending, and delay the introduction into the market according to preparedness. Such growth would be disorderly, hazardous and even deadly in the case it lacks a plan.

Business plans can also find out the time to change strategy, to bootstrap vs fundraiser, or when to access funding of medical device startups in healthcare-centric venture funds.

How to Write a Business Plan That Works

An effective business plan ought to be exhaustive and brief. These are the main parts that should have it::

1. Executive Summary

Write a short description of your whole business in 1-2 pages. It is supposed to have your vision, opportunity, business design, and top-line financials. Consider it being your document version of your pitch.

2. Issue and Action

Discuss the problem you are solving and how your product/service is solving the problem better. Indicate that you perceive pain points and unmet needs.

3. Market Analysis

consider the use of total addressable market (TAM) target market, customer persona, and competition. This is necessary to approach such specialized markets as medical startup financing or finding funding to start a healthcare company.

4. Product/Service Description

Clarify what you are offering, features, technology stack and roadmap to development. Transparency in this case prevents misunderstanding at the time of investment banking or during due diligence.

5. Business Model

What are the sources of income? Add pricing strategy, revenue streams and unit economics. Your average for the size of ticket and your margins can have a huge difference when startup valuation.

6. Marketing Strategy Sales

Explain how you are to get and maintain customers. Put in your go to market strategy, channel and customer acquisition cost (CAC).

7. Team

Flag the people on your founding team, advisors and early hires. A great team can influence the investor more than an idea.

8. Financial Projections

Present estimates of income statements, cash flow, and balance sheets of the subsequent 3-5 years. Even when you happen to be in business as a startup fundraiser in India, realistic and dependable projections make you believable.

9. Appendices

Include charts, competitive research, technical illustrations or back-up documents that can support your plan.

Pro Tip: Run realistic business valuation and financials with business valuation software, it makes investors take you more seriously and enables internal decision-making.

Common Mistakes to Avoid

This mistake is made when you do not calculate correctly, or you follow the wrong procedure

1. Incorrect Evaluation

Another common trap to the preparation of a business plan is under/ over-estimation or rather application of evaluation tools. This may imply the use of inaccurate data sets, impractical assumptions or merely a wrong procedure in estimating such quantities as market size, start-up valuation, estimated revenue etc. Misleading financial models may provide a false idea to you and a would-be investor. 

2. Leaving Out Important Information

Sections which you do not fill in, such as customer insights, competitor analysis or even financial risks can ruin your plan. Such absence of things make investors doubt your readiness. Whether it’s medical startup funding or tech ventures, a complete and transparent plan builds confidence.

3. Too Vague

It is best to avoid the blank statements such as “we are transforming the game”. Be specific. What is your value added? What is your pull? Investors take accuracy and specificity as a success in the revenue raising business, particularly in such specialized markets as medical device startup funding.

4. Not paying attention to Competition

Do not ever claim that you have no competition because it is a bad sign of research. Do not ignore them, state how you are different instead. This enables you to establish your position in the market and shows that you completed preliminary work.

5. Poor Attention 

An attempt to resolve a lot of issues simultaneously causes a scattered approach. To develop the importance of a business plan, you should concentrate on your one major solution and develop around it. Specifications are simpler to pitch, finance, and develop, at least in terms of early-stage startups.

Final Thoughts

A business plan is extremely important – many founders will attest to it when getting ready to seek investors as individuals and multiple startups when deciding between equity and debt financing. The business plan is the roadmap, the backer of the pitch deck, and an inner guide. Business plans today, particularly in a capital-intense industry such as equity vs debt financing, make a difference because most companies have closely considered business plans. It does not only indicate investor preparedness, but it also is an indicator of strategic maturity.

Be it getting a better opportunity to gain funds in your startups, or sustaining the momentum when your start ups are in the process of gaining funds, the business plan is one of the most helpful tools you get.

Frequently asked questions (FAQs)

1. Is a business plan really necessary if I’m bootstrapping?

Yes. A business plan provides organization and cohesion, even when you are not seeking funds, particularly during growth and in any other case.

2. What’s the ideal length of a business plan?

As a rule, 15-30 pages, depending on the industry. What is more important is clarity and substance than length.

3. Do investors actually read the whole business plan?

They will most likely read the executive summary. When interested they will get deeper. You need to guarantee that the initial 2-3 pages are strong.

4. Can I use templates or AI tools to write my business plan?

Templates will organise the thinking. It can be helped by the use of AI tools, yet the content should always be adjusted to your specific business premises.

5. How often should I update my business plan?

Once a year at most or whenever you have a big shift – such as raising new funds, introducing a product or entering a new market.

Raising your first startup funding isn’t a straight path. It is a combination of ambition and confusion and being haphazard a lot. I thought having a great idea was enough. Spoiler alert- it was not. The next thing was an uncontrollable ride of funding errors, pitch fails and then, success.

Here’s what worked, what did not and how to raise smarter.

The Vision That Started It All

My B2B SaaS product was created to help small manufacturers optimize their supply chain with the idea of cleaning up the procurement process plaguing so many small and medium-sized enterprises through thousands of stories told to me. It is an exciting thought, and with investment banking being the future of the startup world, it felt like money was within a pitch.

What I had:

• Passion which would stop a room
  I trusted the issue that was being resolved and was passionate about creating something that could make a difference. I can say countless words about our vision. However, passion though significant, does not seal deals.
  
• Minimum Viable Product (MVP)
  We had an operational model. It was not exactly beautiful, but it demonstrated that we were able to perform. In fundraising for startups, even a basic MVP can be your biggest asset early on.
• One Progressive Customer
  One of our SMEs had begun utilising our platform and this gave us a small insight into product-market fit. Just a single customer will tell a lot to some kinds of investors as long as you emphasize it properly.

• A Two Person Founder Team
  As a team, we were very lean, committed and wearing many hats, including just me and my co-founder. We were skilled technically and in the domain and we were full time.

However, as it turned out to me later, those elements are not enough to get you funded.

What I lacked:

•  A Strategy for Business Valuation
  I was at a loss for words when an investor inquired about the value of our business. I hadn’t even researched business valuation software or known what determines a startup’s value, particularly for a non-profit organization. I discovered the hard way that narrative, traction, and benchmarks are just as important to valuation as numbers. I later used the free business valuation tool from FundTQ, which provided me with a range that was reasonable and suitable for investors.
• A Pitch Deck That Is Precise and Powerful
  Our initial pitch deck was a complete mess, with slides that were overly wordy, lacked a visual narrative, and lacked important components like financial projections, expectations for post-money valuation, and a well-defined go-to-market plan. The errors were typical of a pitch deck. No investor made it through.
• Investor Intelligence
  I was emailing VCs blindly,without knowing their average ticket size, sector focus, or investment stage. I was unaware that locating investors is a real skill that calls for investigation, customisation, and knowledge of what each investor is actually seeking.
•  Unaware of Investment Banks
  I was not aware of the role of Investment Banking Services into start-up financing. Did they perform the role of  Middlemen? Advisors? All I understood was that they were threatening, and I did not know how and when to address them.

What Didn’t Work ?(Mistakes I Made Early On)

• Absence of a clear value proposition
  I was unable to sum up our product in a single sentence. That is an issue. Certain investor types seek clarity. Without clarity, there would be no funding.
• Weak First Impression = Poor Pitch Deck
  We skipped over the basics— I hadn’t read up on pitch deck mistakes, and it showed. I left out essential slides like go-to-market strategy, unit economics and post money valuation expectations.
• No prepared business valuation
  When an angel investor asked, “What’s your startup worth?”I went into a panic. I had no data. Software for zero business valuation. No responses.
•  Constructed a poor pitch to investors
  I was sending Series B-focused VCs decks. I had no idea how to locate investors who fit into niche markets like medical equipment startups or seed funding.

A big lesson? Investor fit is important.

What Finally Worked?

After a few rejections, I paused. I stopped pitching and started listening. And that made all the difference.

• Refined My Pitch Deck (Thanks to Templates)
  I discovered well-structured templates of pitch decks that founders can use and restructure my entire story. Every slide served a definite purpose: there were the problem statements, the financial projections. The narrative was flowing now and investors remained with the deck up to the end.
• Understood My Business Valuation
  Using FundTQ’s free Business Valuation Tool, I finally got a realistic idea of what my business was worth—even without revenue. The tool provided me with a ballpark, using the market standards, founder risk and average ticket size in our industry.
• Built an Advisory Boards
  I brought in two experienced mentors as advisors—one from manufacturing, one from investment banking services. Their connections gave me opportunities that I would not have realised.
• Proof of Traction
  We acquired two retaining customers and enhanced the retention rates. It wasn’t scale yet, but it was validation—something all types of investors look for, especially in fundraising for startups in India.
• Investor Fit
  I quit looking at VCs and enrolled in a local startup network where I discovered two angel investors. We had a common space as they had invested in medical start-up equipment previously. This orientation altered the whole mood of our discussions.

The “Yes” That Changed Everything!

It took five months of cold emails, personal introductions, investor meetings, and 12 rejections until I got to hear the words every founder was hoping to hear: We are in. Not a mega-round, with 50 lakhs of seed funding  in the form of equity. Still, it was sufficient to draw out some runway and recruit a sales team, as well as plan a bigger round. The initial “yes” not only confirmed my business, but all the failures that I had gone through.

The learning? It is not enough to find somebody to give you the check, but to find the alignment with the investors, trust, and non-money value.

Final Takeaways for First-Time Founders:

If you’re preparing to raise your first startup funding, here’s what I wish I knew at the beginning:

• Stop chasing  funding—chase clarity. Learn about your customers, your business model and your vision. Confidence is created through clarity.
• Take advantage of the appropriate tools. FundTQ’s business valuation software helped me estimate valuation credibly. Do not wing it but support it with data.
• Get the right people to talk to. Not every money is good money. Seek out investors that match your stage, vision and industry.
• Show traction. A success even in minor victories is important. All those lead to a reduction in perceived risk: early customers, back orders, use cases.
• Don’t get discouraged. All the no takes you to an improved yes. Remain strong, and take lessons about rejection.

The other essential point which should be comprehended is that both fundraising vs bootstrapping  are acceptable, depending on the desired rate of growth, on your level of risk aversion and on the market in which you operate.

Ready to Raise Your First Startup Funding?

Here’s how you can begin the right way:

• Determine the value of your company first. Try the free Business Valuation Tool from FundTQ.
• Tell your story correctly. Get FundTQ’s  Founders’ Pitch Deck Templates here.
• Recognise the expectations of investors. Discover the differences between Equity vs Debt Financing as well as the seed funding process.
• Make contact with the appropriate individuals. Learn how to locate investors by round size and sector.
• To begin with, if you’re entering deep tech, building a medical device startup, or scaling SME strategies, make the most of your first round of funding with a strong plan.

Conclusion:

In fact, proving that you have created something worthwhile is far more important than merely impressing investors with hype when trying to secure your first startup funding. Rejections are inevitable. Of course, the fundraising process will have mistakes. But money is not the only thing which makes belief to rise higher, but the combination of clarity, traction, and storytelling.

And this is all the difference.

In the high-stakes world of startups, where funding decisions can be made in days and fortunes won or lost in quarters, investors trust isn’t just a nice-to-have — it’s a strategic asset. Product development, market penetrations, and pitch decks are some of the issues that founders pay attention to. However, it is not analytics and concepts which make an investor write that check. It is faith – in the integrity, skill and dedication of the founder. Differently put, it is faith.

Such trust is even more essential in new ecosystems such as fundraising for startups in India, where venture capital is proliferating, yet trust is hard because of the historical experiences of misreporting, overvaluation, and governance failure. Investors gamble on humans rather than statistics. This blog discusses why trust is fundamental in the relationship between investors and why a person can be perceived as trustworthy, and how to portray that to investors at every fundraising level.

Why Trust Matters to Investors?

Start up investing is not a smooth straight forward process. It entails enormous risk, lack of complete knowledge and reliance on future potentiality. This is the reason why the aspect of trust comes at the heart of decision making process of all those investors:

a. High-Risk Environment

Startups work under a volatile environment. There can be a product pivot, passing market conditions, and faster-scaled competitors. Investors are not in a position to either stop or affect these variables, but they will be able to have control over the people whom they partner with. The inherent risk can be countered by confidence in the decision making of a founder, his resilience and truthfulness.

b. Long-Term Relationships

Venture investments are very long-term ventures-unlike stock market where one probably expects gains at the end of the year. This renders trust as an essential part of the founder-investor relationship. It turns out that investors rather prefer those founders who can be increased to greatness, supported in difficult moments, and hailed during prosperous ones.

c. Uncertainty Based Decision-Making

A lot of investment decisions are done on partial information. In this case, financial diligence is equivalent to emotional due diligence. Integrity usually becomes the show stopper when there are conflicting measures.

Key Traits Investors Look for in Trustworthy Founders:

The venture capitalists, angel investors and even strategic investors have devised intuitive radars of testing founder credibility. The characteristics that they all approve of would be:

A. Transparency

Transparency is more likely to build the Investors trust  with founders who are willing to discuss the problems, mistakes, and learning. It is a sign of maturity and sense of risk.

B. Consistency

This message and action should be ensured not only in pitch meetings but also after funding in telephone conversations with a consistent image established. Changing stories are misleading and would destroy confidence.

C. Execution ability

Trust does not only belong to the emotional realm it is an act. Letting a founder state that an MVP will be delivered in three months and a founder delivers it in two, that would prove to be a level of trust.

D. Inclination to take feedback Openness to Feedback

Perfection is not awaited by investors. They do require modest posturing though. Entrepreneurs who accept criticism and go to work on it create a spirit of working together.

E. Integrity of Financials

Fuzzy math is a halo mark. Founders who are trustworthy are conservative on projections, rigorous on accounting and open on burn rates. Clean cap tables and sound post money valuation make it look good.

Tools That Strengthen Trust

Contemporary founders can use tools that can strengthen investor confidence. These are not just good practice, these are the aspects of strategic trust-building.

A. Business Valuation Software

Tools like FundTQ or comparable business valuation software help startups demonstrate professional-grade financial planning and fair valuation. These instruments lower the level of subjectivity and allow objective-based negotiations.

B. Pitch Deck Templates of Investor-Raising

The thing is that clarity, completeness, and professionalism can be guaranteed through well-reviewed pitch deck templates and the absence of common pitch deck mistakes. They assist the founders to develop a story and to state it in a logistic manner.

C. Clean Reporting and Regular Updates

Monthly, or even quarterly updates to investors, even those who are still prospects, generate momentum and participation. Such visible reporting systems, like automated dashboard, are indicators of maturity and discipline in execution.

Common Mistakes That Break Trust:

A. Over promising and under delivering

It is perhaps the greatest and most common pitfall, particularly, in the course of the seed funding. To impress investors, there are cases where founders overstate product launches, customer acquisition or revenue goals in an attempt to get an investor to invest.

After failing to attain those milestones, it does not only show inadequate forecasting but also impairs the reputation of the founder. Aspirants start thinking whether things will change in the future.

What to do instead: Form realistic goal time-bound assessment based end results. It is advisable to under promise and deliver the products quicker than the promise than to promise what you cannot deliver.

B. Hiding Bad News 

All startups take a detour – a goal is not met, a team member drops out, there is a bug in the product, or the market rejects it. The most unsatisfactory thing that a founder can do is to hide these problems before investors in the anticipation that things will automatically resolve themselves.

Such transparency gives a shortfall of trust. Investors do not want perfection, they want to be told the truth and to be accountable.

What to do instead: Take initiative to share the challenges, preferably with a solution in place. Credibility is fostered by being transparent even when the times are hard.

C. Unrealistic Financial Projections

When numbers are offered without any vivid assumptions and highly over taunted revenue projections, investors are bound to raise their eyebrows. The process of preparing financial projections must depend on logic, industry averages and market realities rather than wishful thinking.

When projections do not meet the market realities or previous performance, investors will consider manipulation or gullibility-both have a slippery effect on your credibility.

What to use instead: Structured models which can be found in business valuation software or scenarios explaining your assumptions. The main key  is transparency in numbers  to maintain investors’ trust.

D. Ignoring Competitor Activity

Comparative statements made in relation to the competitors during investor discussions may be perceived as arrogant behaviour or lack of knowledge of the market. There is no startup that exists without other startups around it–investors like to hear how you distinguish yourself, not that you feel there are other startups out there.

When you fail to do this, it will appear that you either forgot to do your homework or you are not ready to adapt.

What to use instead:  Recognise and openly give credit to the competitors and examine their strengths and weaknesses and show how your startup has a superior or more distinct value to the proposition.

D.Neglecting Legal and Compliance Issues

Startups often move fast and break things—but ignoring legal or compliance obligations can break investors trust beyond repair. This consists of intellectual property ( IP ) problems, unpaid taxes, or not having founder agreements, inappropriate ESOPs, or non-conformity in company regulations.

These concerns can be lurking behind the scenes and not arouse until it is too late, but when they do, they have the capability of causing due diligence to stall and deal momentum to be crushed.

What you can do instead: Get your IP, company structure, shareholder arrangements and compliance right early. It can be an idea to use legal services or websites providing startup compliance.

How to Build Trust Before, During, and After Fundraising?

Trust is not something that can be established one time but it is an ongoing process. This is how to do it at each of critical phases:

A. Before Fundraising

• Map your story: Make your same story appear throughout your website, LinkedIn, investor notes, and pitch.
• Check your figures: Employ the use of tools or advisors to make sure your numbers are justifiable and within the realms of reason.
• Get warm intros: Trust is best established when you come in through each other, trusted people.
• Write down what you learn: Post-mortems or case studies are a sign of self-reflection and candour.

B. During Fundraising

• Have your data room in place: Be aggressive when it comes to supplying information. Recently a well-organised due diligence folder told much.
• Keep communicating: Before making any conclusive decision, investors tend to stay quiet. Do not push them too hard on matters of keeping them informed.
• Make assumptions clear: In the event that a market forecast or CAC value is made on assumptions, this should be stated.

C. After Fundraising

• Deliver on-boarding packages: Establish Day 1 communication expectation, governing, and update requirements.
• Provide quick victories: Even trivial gains after the capital injection will testify to them that they made a wise choice.
• Be seen: Have consistent check-ins, post strategic decisions and ask for feedback.
• Accept failures quickly: An example of a heartfelt apology and a remedy, is more effective than being silent.

How FundTQ Helps Build Investor Trust?

In the new data era of fundraising, the issue in the use of the right tools can often make an enormous difference in terms of how investors feel about your startup. One such tool making a mark in the ecosystem is FundTQ — an integrated platform designed specifically to support startup founders in navigating fundraising with transparency, structure, and credibility.

Here’s how FundTQ helps enhance investors trust:

A. Valuation that is Realistic and Defensible

FundTQ uses industry-compliant valuation methodologies to offer founders an unbiased and data-backed estimate of their company’s worth. Unlike arbitrary numbers that raise red flags, valuations derived through business valuation software like FundTQ are more likely to be accepted by sophisticated investors during negotiations.

B. Investor-Ready Compliance

From cap table structuring to compliance documentation, FundTQ guides startups through the due diligence process even before the funding round begins. This minimises wastage of time in back and forth and portrays the startup as fund ready boosting the credibility of the investors.

C. Proposal and Budget Template

On the platform, it is possible to access professionally designed templates of pitch decks and financial projection tools. These assets help founders avoid critical pitch deck mistakes and build a narrative aligned with investor expectations.

D. Formal Fundraising Process

FundTQ breaks down the seed funding process into actionable steps, enabling founders to track their fundraising journey from investor outreach to deal closure. This degree of formality indicates to investors that the capital raising is a matter of seriousness to the founder and he/she has made time to understand the process.

E. Investor Communication Dashboard

Once you’re in discussions with investors, FundTQ allows you to share your updates, documents, and financials in a secure, well-organized dashboard. It establishes a single point of truth that is both transparent and effective, and these features strengthen the element of trust.

In essence, FundTQ is more than a platform, it’s a strategic partner in making your fundraising journey more investor-friendly and credibility-driven.

Final Thoughts: Trust is Your Competitive Edge

It is used to go beyond experience and the number of rounds funding raised to actually build trust as the real differentiation in an ecosystem where virtually every pitch deck, AI generated predictions, and hyper-growth tales abound. Startups that build investors trust as a core strategy but not an afterthought that tend to go further, raise smarter capital, and attract long-term allies.

Other than raising funds, trust is also useful in major exits, improved partnership, and adaptive leadership. Trust is something that can become your anchor, and your strength in a space, where making fundraising mistakes, economic crises and rivalry is part of the order of things.

Therefore, be it bootstrapping, or requesting equity instead of debt financing, or when preparing for medical startup funding, founders cannot raise capital upon a vision, but they have to be able to fund it through trust.

The healthcare sector is undergoing a significant transformation, with medical equipment startups playing a pivotal role in redefining diagnosis, treatment, and patient care. The startups are investing big time in the year 2025, their growth is associated with innovation and the fact that it attracts even the developed nations as well as the emerging economies. With the number of AI-based technology devoted to diagnostic and surgical tools, the medical equipment market is rapidly changing the industry and transforming the quality of treatment.

This is occasioning a profitable venture to investors-particularly in an ageing global population and with greater demand on remote healthcare technologies. This blog explores why medical equipment startups are gaining momentum, the top investment trends in 2025, what investors should look for, how to value these startups, and how tools like FundTQ’s valuation software and pitch deck templates can help founders and investors alike.

Why Medical Equipment Startups Are Gaining Traction?

The sharp rise in medical equipment startups isn’t a fluke. It is an outcome of a combination of socio-economic, regulatory and technology trends that beg the further disruption and expansion of the industry.

1. Aging Population

The world over, population aged 60 years and more is increasing at a greater rate than any other age bracket. The UN predicts that by 2030 one in every six people will be aged 60 years or older. Such a population change is putting a strain on the need of managing chronic diseases, mobility products, diagnostics, and equipment required in the care of an elderly population. Medical equipment startups are stepping in with solutions tailored to this rising need.

2. Regulatory Support

The world over, governments are appreciating the importance of MedTech innovation. Startups in such countries as the U.S., India, and Germany have access to:

• Accelerated review of life-saving medical gadgets.
• Innovation grants and R&D tax credits.
• Industry-public partnerships that finance clinical trials, or field deployments.

Such cross-border investment and collaboration stimulation, as well as a means of lowering the time-to-market, is also achieved through such policy-level approvals.

3. Technological Integration

The introduction of new technologies – such as AI, IOT, and robotics – has altered the picture of medical equipment. Devices today are more intelligent, smaller and more customised. The augmentation of medicine and data science has been establishing new horizons, namely in early detection and tracking of unattended patients in real-time.

4. Global Health Preparedness

The wide availability of medical equipment, especially scalable, was something highlighted during the COVID-19 pandemic. The world is once again paying attention to the resilience of health systems post-pandemic, which leads to spending lots of money on startups that can provide affordable and scalable solutions.

Key Investment Trends in 2025

The market of niche technologies in medical equipment startups  is  going through the roof in 2025. Investors are targeting scalable tech-enabled gadgets that have good IP potential and are of international uses.

Digital Diagnostics Machines

In focus are startups that come up with imaging, pathology, and screening tools based on AI. They are able to assist doctors to identify peculiarities sooner and more efficiently, eliminate mistakes in diagnosing or determine it with a better result, benefiting the patient. There are already multi-million-dollar medical device startup funding rounds across the whole world in AI-powered radiology platforms.

Wearable and Portable Devices

An emerging trend of health directed towards wellness is due to the rise in the amount of usable health technology, including ECG monitors, glucose sensors, and portable spirometers. Consumer and institutional interest of start-ups is lightweight, wireless, and data-integrated consumer-based technology devices to supervise patients in the home environment. 

Surgery and Rehabilitation Robotics

Venture capitalists and hospital networks are becoming more willing to invest in surgical robotics startups, including those that sell robotic arms which enable minimally invasive surgery. Likewise, robot rehabilitation startups concentrating on taking care of patients that had suffered a stroke or experienced trauma are becoming focal position players in post-surgery care.

IVD or In-vitro Diagnostic Tools

New companies providing point- of care diagnosis products and molecular testing systems are transforming the way diseases such as cancer, diabetes, and infectious diseases are detected, at early stages. Global investor interests are growing across Asia-Pacific and Latin America due to the need to develop cost-efficient high-speed tools of IVD.

What Investors Look For?

Investing in medical equipment startups is not just about the tech; it’s about the complete package. These are priorities of smart investors:

• Clinical validation: The ability of the start-ups to show efficacy with trials or pilot studies catches the confidence of the investors.
• Regulatory Roadmap: An easy route to FDA, CE or CDSCO approval is essential.
• Scalability: The products must be scalable so that they can be massively produced and accepted in different territories.
• Intellectual Property: The patent of certain proprietary technologies greatly contributes to the increase in valuation and a desire to invest.
• Experienced Team: It is massive that the founding team is well rounded with experience both in the healthcare sector, engineering, and business background, too.
• Reimbursement Potential: In many cases, goods that have insurance reimbursements do gain a quicker reception to the market.

Also Read: How to do Fundraising for Healthcare Startup?

Valuing a Medical Equipment Startup:

The MedTech world presents a challenge in valuation, as well, with product development processes that take years and regulatory situations that may remain unclear. Nevertheless, a variety of variables assists both investors and founders in coming up with a reasonable price:

• Technology Readiness Level (TRL): The further into commercialization a startup besides capital goals are, the higher its valuation tends to be.
• Clinical Efficacy, Regulatory Status: Successful clinical trial models are market-valued on a high scale.
• Revenue Model: Recurring revenue models (e.g. SaaS with hardware integration) will improve valuation.
• Market Potential: The bigger the addressable markets, the greater the multiples of valuation.

Strategic Partnerships and Distribution Channels

One of the underrated success factors for medical equipment startups is the strength of their distribution and partnership network. The device, no matter how innovative, can not only falter, unless the proper channel is found to reach the hospitals, the clinics or the end-users.

What It Matters:

• Clinics & Hospitals are places that potentially could benefit hurried into emerging systems (such as EHRs), so distribution partnerships with health care information technology suppliers are essential.
• Channel partners and Medical Distributors assist startups to scale quicker through communities by a procedure called piggybacking, utilizing the precedent logistics and compliance networks.
• Partnerships with Pharma & Insurance Companies can help  to increase adoption and  bundle devices in with treatment protocols, or coverage plans.

Once firms have letters of intent (LOIs), memorandums of understanding (MoUs) or initial sales contracts, startups are ahead of competition to the investors because it indicates that they are ready to go to the market.

Use FundTQ’s Free Business Valuation Software:

To simplify the valuation process, FundTQ offers a free business valuation software tailored for startups, including those in medical and healthcare domains. The computer tool can carry complex calculations of various business and market dynamics including revenue predictions, R&D pipeline, and competition to arrive at a data-justified valuation within minutes.

Advantages of using FundTQ’s valuation tool:

• Venture capital friendly having healthcare specific variables
• Simple dashboard and real time information
• This can be helpful when it comes to medical startup funding discussions, and pitches with investors
• Smart, to use, with reports available to download

An Effective Presentation to Investors: The power of a Good Presentation Deck

Even the most groundbreaking product can be overlooked without a compelling pitch. When presenting a medical equipment startup to investors, founders should focus on:

• Problem-Solution Fit: Make sure to clearly state the healthcare problem and how your device addresses it.
• Clinical and Technical Evidence: Display clinical data, certification or research association.
• Go-to-Market Strategy: Give a detailed plan on how you will reach the hospitals, clinics or direct consumers.
• Regulatory Milestones: write the previous and future approval processes.
• Financial Projections: Give viable projections and the capital needs.

Use FundTQ’s Pitch Deck Templates:

Creating a pitch deck that resonates with MedTech investors is easier with FundTQ’s custom pitch deck templates designed specifically for medical and healthcare startups.

Advantages of FundTQ’s Pitch Deck Templates:

• Slides dedicated to the industry (clinical trials, certifications, reimbursement plans)
• Graphical highlights to add more value to the investors
• Editable formats (Power Point, google slides)
• Saves time and ensures a professional presentation
  

Conclusion:

The landscape for medical equipment startups in 2025 is buzzing with opportunity. Increasing demand for healthcare services, regulatory favorability, and technological advancement make it a prosperous market to founders or investors. But to make more informed decisions as someone investing, or someone in need of capital. You must have a good deal of knowledge on product-market fit, clinical validation, and value creation.

Startups can benefit from tools like FundTQ’s free valuation software and customized pitch deck templates, helping them attract the right investors and articulate their vision with clarity. To investors, the sector provides them with an opportunity not only in terms of getting financial returns. Also in terms of making significant contributions to meaningful healthcare innovation.

In the not-so-perfect world, which is rapidly becoming both health-conscious and technology-oriented, investing in the right medical equipment startups can thus prove to be the most intelligent move in 2025.