More than 15% of married couples in India struggle to conceive, making infertility a serious health concern. Over 40 million couples in a nation of over 1.4 billion people deal with this issue. Infertility can result from a number of problems, including pollution, smoking, drinking alcohol, erectile dysfunction, damaged sperm ducts, and disorders related to genes. Infertility is also caused by endometriosis, PCOS, postponed marriages, hectic lifestyles, and other conditions, particularly in women.

About IVF Industry

One of the fastest-growing sectors in India is IVF, which was valued at an astounding $793 million in 2020 and is projected to rise at a rate of 16% per year to reach $3.7 billion by 2030. The business is severely under-penetrated in India, with addressable demand being nine to twelve times higher than the present market, according to a private analysis by FundTQ, the country’s top mid-market investment bank. In addition, India remains a preferred destination for medical tourism due to the nation’s abundance of first-rate hospitals and knowledgeable reproductive specialists.

Branded IVF chains are expanding as a result of heightened regulatory scrutiny, such as that brought about by the Assisted Reproductive Technology (ART) Bill. Many small IVF clinics around the nation closed when the ART Bill was passed, which allowed controlled PAN India IVF chains to grow.

More than 2,500 IVF facilities are already operating in India in an effort to meet the rising demand. While the number is gradually increasing in both tier-1 and tier-2 cities, the unmet demand is being addressed by specialized IVF chains like Indira IVF, Gaudium IVF, Nova IVF, and Oasis Fertility in addition to multi-speciality hospital chains like Cloud9, Apollo, and CK Birla Hospital. To ensure that the entire IVF process is kept a secret from society and because of the social stigma associated with IVF, couples seeking treatment prefer specialized IVF chains over multi-speciality hospital chains.

A number of sizable, specialized IVF leaders have succeeded in making a mark on the market. In this category, Indira IVF is the frontrunner, operating over 115 centers throughout India and completing 45,000 cycles yearly. With more than 60 locations around India, Nova IVF performs 13,000 cycles a year. With more than 30 locations across six states, Gaudium IVF is among the top 5 IVF chains in the US. It executes more than 2500 cycles annually with an industry-leading success rate of 65%. The organization has a proven track record of managing high-profile cases, including one involving renowned Bollywood actress Ms. Shilpa Shetty, and complicated Multiple Attempt Patients (MAP). Furthermore, the majority of locations serve the nation’s poorer classes, but Gaudium is one of the few chains with a PAN India presence that serves the country’s upper middle class.

The founder and CEO of Gaudium IVF, Dr. Manika Khanna, said, “We are doing a fund-raise of over INR 100 crores to help couples address the challenge of infertility,” in response to a question regarding the company’s future expansion plans. Through this fundraiser, we will be able to assist infertile couples in realizing their dream of becoming parents by opening many new centers in important Indian cities and expanding our pan-Indian reach. In order to make our services more inexpensive and accessible to a larger number of patients, we have also introduced a flexible payment plan that enables customers to make payments in convenient installments.

FundTQ has been designated as the fundraising’s exclusive advisor.

India is increasingly being chosen as a destination for IVF treatments due to the country’s expanding medical tourism industry. The only chain with numerous foreign accreditations and a sizable patient base from outside is Gaudium.

Dr. Manika goes on to say, “We want to position India as a desirable location for these specialized procedures, and the country has a far higher success rate than other nations.” The Gaudium brand connects strongly with global standards, superior medical care, and success rates, enabling us to positively impact the lives of childless couples everywhere. India’s IVF market is expected to grow because its costs are a tenth of those of other countries.

Due to the potential for future growth, the IVF industry has seen a rise in consolidations. Examples of these transactions include the majority acquisition of Indira IVF by Baring PE Asia EQT, the acquisition of IVIRMA, a Spanish IVF center, by PE giant KKR, and an investment in Ovation Fertility by Morgan Stanley Capital Partners. In a similar vein, Prelude Fertility, which has had Lee Equity support since 2016, collaborated with Inception Fertility to establish what it claims to be the biggest supplier of all-inclusive reproductive therapies in the United States.

India is raising the fertility flag in a world where it can be difficult to determine whether to use family planning. With worldwide recognized art facilities and jaw-droppingly successful lab equipment, India is quickly becoming as the world’s IVF hotspot.

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Due diligence is a crucial step in the ever-changing startup funding landscape that has the power to make or destroy an investment agreement. Knowing the details of due diligence is crucial for confidently navigating the funding route, regardless of experience level or level of inexperience with startups. We’ll cover what company founders need to know about due diligence in this extensive guide, including its goal, when it happens, what investors look for, and how well-prepared businesses can be.

Understanding Due Diligence: A Fundamental Overview

In the startup space, due diligence refers to the meticulous audit process undertaken by potential investors before committing to funding a business.Due diligence’s main goal is to confirm that the startup’s information matches real facts in order to protect investors from danger and provide transparency.

Investors use due diligence in search for any hidden issues or warning signals that could impact the investment, in addition to ensuring that a company is speaking the truth about what it says. Two factors that can influence how extensive and rigorous the due diligence process is are the stage of development at which a startup is in and the amount of capital involved.

When Does Due Diligence Occur?

Due diligence typically occurs after a startup has presented to an angel or venture capital firm. After investors express interest in the plan, it seems sense to begin the process of researching the company. This process is comparable to conducting a thorough survey before purchasing real estate, which is a crucial stage for investors to feel safe and confident in the venture.

The duration of the due diligence process might vary, ranging from a post-pitch in-person discussion to a more drawn-out investigation involving attorneys, accountants, and a thorough evaluation of all supporting material. Consequently, investors use this crucial stage to verify the startup’s claims, evaluate its financial standing, and investigate the operational and legal elements of the company.

What Will Investors Ask for During Due Diligence?

During due diligence, investors usually use a basic checklist that is customized to meet their needs. Even while each investor may have a different checklist, companies can expedite the process by ahead of time creating standard documentation. To assist startups in successfully navigating the due diligence evaluation, consider the following eight points:

1. Financial Information and Business Plan:

Present financial statements and a well-developed business plan outlining revenue streams, cost structures, and growth projections for investor assessment.

2. Intellectual Property Rights:

Submit copyright, patent and trademark to protect assets and ensure legal protection of intellectual property.

3. Minutes and Business documents:

Provide corporate records, meeting minutes, and legal documents to demonstrate regulatory compliance, corporate governance, and transparency in business operations.

4. Lawsuit Transparency:

To reduce risks and give prospective investors transparency, disclose information about any pending or settled legal disputes, settlements, or litigations.

5. Team Interviews and Background Checks:

Facilitate interviews with key team members and allow investors to conduct thorough background checks to assess team competence and reliability.

6. Supply Chain Contracts and client Data:

To assess market reach and scalability, share with suppliers contractual agreements and information into client demographics, retention tactics, and acquisition methods.

7. Revenue and Sales Numbers:

Provide comprehensive revenue reports, sales projections, and customer acquisition metrics to showcase business growth potential and financial performance.

8. Market Analysis:

To show that you understand the market, see growth prospects, and evaluate the positioning of your competitors, provide comprehensive market research, competition analysis, and industry insights.

How to Prepare a Startup for Due Diligence?

Preparing for due diligence is a strategic opportunity for startups to conduct an internal audit, optimize formalities, and verify their growth plans. Consequently, it entails transparent organization and careful attention to detail, making sure that every documentation is correct and consistent with the investment pitch.

Preparing the following ahead of time can help startups:

Articles of incorporation, ownership structure specifics, organizational chart, and other corporate information and structure.

• Material Importance Agreements including overview of marketing, service, and distribution agreements and Documentation of agreements with major customers and suppliers.
• Intellectual Property and Technology like copies of intellectual property agreements and invention agreements. Overview of owned and developed items, including patents and trademarks.
• Documents pertaining to labor and employment, such as conventional employment contracts, personnel data, pension policy details, and any unpaid balances.
• Financial projections, reports comparing the budget to the actual, and financial statements. details about capital commitments, mortgages, and debt securities.

Startups can give prospective investors a strong and transparent profile by carefully arranging these elements, which will inspire trust and make the due diligence process go more smoothly.

Why Should Startups Be Grateful for Due Diligence?

While due diligence may seem like a rigorous and meticulous process, startups should view it as a valuable opportunity for improvement. Due diligence can reveal areas for optimization, enabling businesses to strengthen any areas of weakness and improve their operations. Additionally, the due diligence procedure gives companies an opportunity to demonstrate their dedication to accuracy and transparency—qualities that are critical to winning over investors.

Due diligence is essentially a two-way street where investors learn everything there is to know about the startup and entrepreneurs learn important things about possible places to improve. Startups that embrace due diligence as a cooperative and advantageous process have a better chance of obtaining capital and progressing to the next stage of development.

Conclusion

Due diligence is a crucial milestone that necessitates planning, openness, and a dedication to accuracy in the cutthroat world of startup fundraising. Consequently, startups that handle due diligence with honesty and diligence will have an easier time getting funding and starting a lucrative new stage of development.

It’s critical for startup founders to view due diligence as a strategic opportunity rather than a barrier. Startups can boost their chances of getting the money required for success by proactively compiling the relevant documentation, understanding investor expectations, and exhibiting a transparent and well-organized profile. These actions will help them negotiate the due diligence landscape with confidence.

Due diligence serves as more than just a gatekeeper—rather, it opens doors for development, advancement, and successful collaborations between investors and businesses. Accept it, get ready for it, and allow it to spark the beginning of the next phase of your business ventures.

Entrepreneurship is an exciting journey filled with promises of innovation, disruption, and success. The climb is indeed challenging and demands resilience and perseverance, in addition to resources and network. While arranging resources can be a challenging task, arranging one for a new startup can be even more challenging. Hence, FundTQ has come up with this step-by-step guide to help your startup procure its seed funds, ensuring a strong foundation for growth. Explore our comprehensive insights and strategies customized for securing seed funding for startups.

What is a Seed Fund?

A seed fund is a type of private fund that provides initial capital to startups in their early stages of development. Seed funding is crucial for fledgling businesses, helping them go from concept to a more mature stage where they can attract larger investments. Raising seed capital is a long and complex process, hence a thorough understanding of the same is necessary to undertake a successful fund-raise. Explore our comprehensive insights and strategies customized for securing seed funding for startups.

Plan Your Business

A strong business is like well-oiled machinery with a combination of several levers, interacting with each other efficiently to form a well-oiled machinery. Building one requires a careful understanding of one’s customer, market, industry and Unique Value proposition.

You can always use an MVP (Minimum Viable Product) to test your product’s competitiveness. This would give you an idea as to where your product stands in the industry, and the improvements required thereon to suit the customer’s needs.

Build Your Financial Plan

Seed funds can be arranged both internally (i.e. founder’s past savings) as well as from external investors. While arranging funds from external investors, you must build a clear and concise financial plan. Building a financial plan has three major components:

1) Plan your fund requirements– Calculate your operational costs, product development costs, talent costs and other costs to estimate the total fund requirement.

2) Planning fund utilization- Identify the areas that would require fund allocation. Prioritize areas that will drive growth and prove your business model, such as product development, hiring, marketing, sales and business operations.

3) Creating financial projections- Financial projections for the next three to five years, including revenue, expense and profitability projections, as well as cash flow statements. Despite being estimates, these ought to be reasonable and predicated on reliable information.

Creating An Investor Deck

Once the financial projections have been made, an investor deck or a pitch deck is prepared to garner investor interest. A pitch deck is a presentation that startups use to explain to investors their business model and its evolution in the upcoming years. A successful pitch must contain:

1. The Business Problems that your startup intends to solve and the solutions it offers
2. Market Analysis i.e. how big is the industry and how much you aim to capture
3. Your product and business model
4. Marketing and Sales Strategy
5. Your team signifies their strengths and expertise
6. Financial Projections and how much are you looking to raise

Reach Out To Investors

Once the investor deck is ready, one may leverage one’s professional network to reach out to investors. Startups can either be bootstrapped (i.e. self-financed) or funded by external investors. While both are efficient mechanisms for building a profitable venture, if you want to raise capital from a VC, ensure that your startup satisfies the high return benchmarks set up by VCs (typically 10x returns). You may strengthen your network by visiting industry events and conferences and using online networking platforms, and social media engagement. Hiring an investment banker typically helps in this stage.

Preparing For Investor Due Diligence

Due Diligence is the financial, legal and operational analysis of your business helping investors validate the information presented by you in the previous discussions. They can also evaluate your startup’s growth and possible return on investment, as well as confirm that it complies with all applicable rules and regulations.

Preparing for due diligence can be long and intense. Hence, it is always advisable to keep all the necessary documents ready. You may go through our previous blog Things startups should know about Due Diligence to learn more about DD.

Deal Negotiation And Closure

Negotiating with investors requires a careful balancing act. It requires a thorough understanding of the business’s worth in addition to the perspective of your investor. Be open to discussions and potential changes in terms. However, also know your non-negotiables — the terms you’re unwilling to budge on because they might jeopardize your startup’s interests. Hiring a legal counsel typically helps in this stage.

Conclusion

In the entrepreneurial journey, securing support from diverse investors is vital. Effective communication is pivotal—whether pitching to investors, building your team, or pursuing grants. Articulate your vision, progress, and potential clearly. Be adaptable, refining your strategy based on feedback, and continuously improving as your startup progresses. Remember, fundraising is just one aspect; maintaining transparent and effective communication throughout is key to long-term success.

Today, with technology advancing at an unprecedented rate, fundraising is undergoing a revolution of its own. Conventional fundraising methods included direct mail campaigns, phone calls, and in-person events. Today, these methods are replaced by a range of tech-dependent services designed to maximize efficiency, broaden donor reach, and improve donor experience. Developments in blockchain technology, such as programmatic crowdfunding, reciprocity-based barter fundraising, artificial intelligence (AI) blockchain fundraising, and others, point to the beginning of a new phase of digitalization in the financing industry.

This blog explores the key technological trends that are changing fundraising and enabling firms, startups, and nonprofits land, to fund their business is otherwise low in a global market like today.

Tech Innovations and Trends For the Future of Fundraising

Following are the Tech Innovations and Trends for the Future of Fundraising:-

1. Online Crowdfunding Platforms

Crowdfunding platforms such as Kickstarter, Indiegogo, and GoFundMe have revolutionized the way individuals and organizations raise funds. These platforms allow users to pitch their projects or causes directly to the public, leveraging the power of social networks to generate financial support. What was once considered a niche method for raising capital has now become mainstream, with billions of dollars raised annually through these platforms.

The future of crowdfunding looks even more promising, as emerging technologies like blockchain are being integrated into these platforms. Blockchain can provide enhanced transparency and security for transactions, allowing donors and investors to track where their money is going. The tokenization of assets, made possible through blockchain, will also allow for new ways of structuring crowdfunding campaigns, making them more flexible and accessible to a global audience.

2. Security Token Offerings (STOs)

Security Token Offerings (STOs) are poised to revolutionize the way companies raise capital. Unlike traditional Initial Public Offerings (IPOs), STOs use blockchain technology to issue tokens that represent legal ownership in an asset. These tokens can then be sold to investors worldwide, allowing companies to raise capital without going through the lengthy and costly process of an IPO.

One of the main advantages of STOs is their compliance with regulatory frameworks like the SEC in the United States. This ensures that companies raising funds through STOs are doing so in a legal and transparent manner, reducing the risk of fraud and other illegal activities. As more businesses adopt this cutting-edge technology, STOs are expected to become a major force in the fundraising world, offering a faster, cheaper, and more secure way to raise capital.

3. Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs)

Initial Coin Offerings (ICOs) took the cryptocurrency world by storm a few years ago, allowing companies to raise funds by selling digital tokens to investors. However, ICOs have come under increased regulatory scrutiny in recent years, as concerns over fraud and market manipulation have grown.

In response to these concerns, Initial Exchange Offerings (IEOs) have emerged as a more secure alternative. IEOs are conducted through cryptocurrency exchanges, which vet the projects and ensure that they meet certain standards before allowing them to list their tokens. This added layer of security has made IEOs a more attractive option for investors, and they are expected to play a significant role in the growth of the cryptocurrency and blockchain space in the coming years.

4. Social Media Engagement

Social media has become an indispensable tool for fundraising, allowing organizations to reach a wider audience and connect with donors and investors in real time. Platforms like Facebook, Twitter, Instagram, and LinkedIn offer businesses the ability to run targeted ad campaigns, create engaging content, and build strong relationships with their followers.

In particular, social media allows for the amplification of fundraising efforts through organic reach. By encouraging followers to share campaigns with their networks, organizations can exponentially increase their visibility and attract more donors. Moreover, social media platforms are continually evolving, offering new features like live video, stories, and interactive polls that can enhance engagement and drive donations.

As digital marketing becomes increasingly important in the fundraising world, leveraging social media to its fullest potential will be critical for organizations looking to secure capital in the future.

5. Decentralized Finance (DeFi)

Decentralized Finance (DeFi) is one of the most exciting and disruptive innovations in the financial world. By using blockchain technology and smart contracts, DeFi platforms offer financial services such as lending, borrowing, and trading without the need for traditional intermediaries like banks.

For fundraising, DeFi presents a unique opportunity to raise capital outside of the traditional banking system. Businesses can use DeFi platforms to borrow funds, issue tokens, or even create new forms of digital assets that can be traded on decentralized exchanges. The transparency, security, and accessibility offered by DeFi make it an attractive option for companies looking to raise funds in a more efficient and cost-effective manner.

As DeFi technology matures, we can expect more businesses to explore its potential for fundraising, particularly in industries where traditional financing options may be limited.

6. Artificial Intelligence (AI) in Fundraising

AI is becoming an indispensable tool for organizations looking to optimize their fundraising efforts. From automating administrative tasks to analyzing data and segmenting donors, AI can dramatically improve the efficiency and effectiveness of fundraising campaigns.

One of the most valuable applications of AI in fundraising is the ability to create highly personalized donor experiences. By analyzing donor data, AI can help organizations identify patterns and trends, allowing them to tailor their messaging and outreach efforts to specific donor segments. This not only increases the likelihood of securing donations but also helps build stronger relationships with donors over time.

Moreover, AI can be used to predict donor behavior, allowing organizations to proactively engage with donors who are most likely to contribute to their campaigns. By automating these tasks, organizations can focus their resources on high-impact activities, ultimately improving their fundraising outcomes.

7. ESG Funds: Environmental, Social, and Governance

Environmental, Social, and Governance (ESG) investing is rapidly gaining popularity among investors who want to align their financial goals with their values. ESG fundraising focuses on companies and organizations that prioritize sustainability, social responsibility, and ethical governance practices.

As more investors seek to make a positive impact through their investments, organizations that embrace ESG principles are likely to attract greater funding. This trend is particularly relevant for nonprofits and businesses with a strong commitment to social and environmental causes, as they can leverage their mission-driven focus to appeal to socially conscious investors.

In addition to attracting new sources of funding, ESG fundraising can also enhance an organization’s reputation and credibility, making it a valuable strategy for long-term success.

8. Non-fungible Tokens (NFTs)

Non-fungible tokens (NFTs) have taken the digital world by storm, offering a new way to create and sell unique digital assets. Unlike cryptocurrencies, which are interchangeable, NFTs are one-of-a-kind and can be attached to digital or real-world objects, such as art, music, or experiences.

In the fundraising world, NFTs have been used in innovative ways to raise funds for various causes. For example, organizations can create limited-edition NFTs that donors can purchase, with proceeds going towards the organization’s mission. NFTs offer a way to engage donors in a more interactive and immersive manner, making fundraising campaigns more exciting and memorable.

As the use of NFTs continues to grow, we can expect to see more organizations leveraging this technology to enhance their fundraising efforts and appeal to a tech-savvy donor base.

9. Augmented and Virtual Reality (AR/VR)

Augmented reality (AR) and virtual reality (VR) technologies are creating new possibilities for immersive fundraising experiences. With AR and VR, organizations can offer donors the ability to explore projects, interact with beneficiaries, and experience the impact of their donations in real time.

For example, a nonprofit working on building schools in remote areas could use VR to give donors a virtual tour of the construction site, showing them the progress being made and the lives being changed by their contributions. This type of emotional connection can be a powerful motivator for donors, increasing their willingness to give and their sense of involvement in the cause.

As AR and VR technologies become more accessible, we can expect to see them play a larger role in fundraising events and campaigns, offering donors a deeper, more meaningful connection to the causes they support.

10. Mobile Fundraising Apps

Mobile technology has made fundraising more accessible than ever before. With mobile apps like GoFundMe, JustGiving, and Facebook Fundraisers, individuals and organizations can create and share crowdfunding campaigns directly from their smartphones, allowing donors to contribute with just a few taps.

These apps have streamlined the donation process, making it easier for people to support causes they care about. Moreover, mobile apps allow for real-time updates and notifications, keeping donors engaged and informed throughout the campaign.

As mobile technology continues to evolve, we can expect to see more innovative fundraising apps that offer new ways to connect with donors and raise funds on the go.

Know more about tech and innovation trends in fundraising

The Future of Fundraising

The future of fundraising is undoubtedly digital, with technology playing an increasingly important role in shaping how organizations connect with donors, raise capital, and achieve their goals. From blockchain and AI to AR/VR and NFTs, the possibilities for innovation are endless.

As businesses and nonprofits continue to adapt to this new fundraising landscape, moreover, those that embrace these emerging technologies will be well-positioned to succeed in the competitive world of fundraising. Ultimately, the key to success lies in staying ahead of the curve, leveraging technology to enhance donor engagement, streamline operations, and maximize the impact of every dollar raised.

In this new era of tech-driven fundraising, the opportunities for growth and innovation are limitless — and the future is brighter than ever.

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