Urban Company Funding

Urban Company Raised Funding Worth $193 Million In April 2021

Urban Company revolutionizes home services through its innovative platform connecting customers with skilled professionals. Founded in 2014 by Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan, it offers a range of services from spa and salon to plumbing and photography. With revenue streams including commissions, lead generation, and ads, it rapidly expanded post-pandemic, catering to diverse market segments. With $380 Mn raised over 11 rounds, including a significant investment from Prosus Ventures, Urban Company’s exponential growth and valuation of $2Bn showcase its trajectory as a leader in the home services industry. Explore the latest on Urban Company funding.

Urban Company Overview

  • Urban Company is a pioneering developer of a home service platform facilitating seamless connections between customers and skilled professionals.
  • Founded in 2014 by Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan, it has transformed the landscape of home services.
  • The platform offers a diverse range of services including spa and salon treatments, plumbing, professional photography, servicing, repairs, and more.
  • Revenue streams primarily include commissions from service providers, lead generation, platform advertising, and reverse auction mechanisms.
  • Urban Company experienced rapid growth, particularly in the Post-Pandemic Period, by offering various price points to cater to a wide market spectrum.
  • Their strategic approach of accommodating different price segments contributed to tapping into a market valued at around $12 Bn. This showcases their adaptability and market penetration capabilities.

Funding History

  • Urban Company’s Remarkable Growth: Over the course of more than 8 years and 11 rounds, Urban Company has secured a total funding of $380 Mn, showcasing its impressive journey in the home services industry.
  • Major Investments: In April 2021, Urban Company attracted significant investment from Prosus Ventures, raising a staggering $193 Million. This influx of capital underscores the confidence investors have in Urban Company’s business model and growth prospects.
  • Financial Milestones: Urban Company’s financial performance has been remarkable, with its revenue doubling from $17.7 Mn in FY 19 to $35.2 Mn in FY 20. Additionally, it has set its sights on achieving a valuation of $2Bn, indicating its trajectory towards becoming a market leader.
  • Diverse Investor Base: Urban Company has attracted support from a diverse array of investors. Notable names include Bessemer Venture Partners, Tiger Global Management, Vy Capital, Trifecta Capital Advisors, and Steadview Capital, among others. These lead investors have played a crucial role in fueling Urban Company’s growth and expansion initiatives.
urban company raised funding
Various Funding Round

Also Read: Adani Renewable Portfolio

Pine Labs Funding

Pine Labs Raised $285 Million In Their Venture Round In May 2021

In the dynamic landscape of financial technology, Pine Labs emerges as a beacon of innovation and reliability. With a steadfast commitment to technological advancement and customer-centric solutions, Pine Labs has carved a niche for itself as a leading provider of fintech solutions. Founded in 1998 by Lokvir Kapoor, Tarun Upaday, and Rajul Garg, Pine Labs boasts a formidable legacy of expertise and leadership in the fintech domain. From its humble beginnings to its current stature, Pine Labs has continuously evolved, leveraging its diverse revenue streams and strategic acquisitions to stay ahead of the curve in the Pine Labs funding ecosystem.

In a strategic move aimed at expanding its market presence, Pine Labs recently acquired Qwikcilver in 2020, signaling its broader focus on the South East Asian Market. Furthermore, Pine Labs’ impressive funding track record, highlighted by a significant $285 Mn Venture Round in May 2021, reflects investor confidence in its vision and potential. Despite challenges in profitability, Pine Labs has maintained a robust revenue performance, underpinning its impressive valuation of $3 Bn. Bolstered by support from leading investors such as Flipkart, Sequoia Capital India, Paypal Ventures, and Actis, Pine Labs stands poised to continue its journey as a key player in the fintech landscape. Join us as we delve deeper into the remarkable story and achievements of Pine Labs, a true pioneer in the world of financial technology.

Pine Labs Overview

  • Leading Fintech Solutions Provider: Pine Labs stands at the forefront of the fintech industry, offering cutting-edge solutions driven by technological innovation and a commitment to problem-solving.
  • Established Roots: Founded in 1998 by Lokvir Kapoor, Tarun Upaday, and Rajul Garg, Pine Labs boasts a rich history of expertise and leadership in the fintech domain.
  • Diverse Revenue Streams: Pine Labs generates revenue primarily through the sale of products such as its PoS payment devices, complemented by a range of other services tailored to meet the evolving needs of its customers.
  • Strategic Acquisition: In a strategic move aimed at bolstering its market presence, Pine Labs acquired Qwikcilver in 2020 for $110 Mn (INR 801 Cr). This acquisition underscores Pine Labs’ broader focus on the South East Asian Market and its commitment to enhancing its offerings through strategic partnerships.

Funding History

  • Impressive Funding Track Record: Pine Labs has successfully secured funding totaling $423.2 Mn over the course of 12 years and 8 rounds, reflecting investor confidence in its vision and potential.
  • Significant Venture Round: A major milestone was reached on 17th May 2021, when Pine Labs raised a substantial $285 Mn in their Venture Round. This injection of capital underscores the continued growth trajectory and market demand for Pine Labs’ offerings.
  • Financial Performance: Despite fluctuations in profitability, Pine Labs has exhibited a strong revenue performance, registering $173 Mn in revenue in 2018. While it achieved profitability in 2014 and 2017, maintaining profitability has been a challenge in recent years.
  • Robust Valuation: Despite profitability challenges, Pine Labs has managed to achieve an impressive valuation of $3 Bn, highlighting its market potential and investor appeal.
  • Diverse Investor Base: Pine Labs has attracted investment from leading names in the industry, with Flipkart, Sequoia Capital India, Paypal Ventures, and Actis among its prominent lead investors. This diverse support network underscores Pine Labs’ position as a key player in the fintech landscape.
Pine Lab Funding Rounds

Also Read: Urban Company Funding

Adani Green Energy Funding

Adani Green Funding: Powering India’s Renewable Future

Founded in 1988, Adani Green Energy (AGEL) is a leading player in India’s renewable energy sector, specializing in solar and wind farm projects. With a focus on sustainability, AGEL’s portfolio spans 87 locations in 11 states, supplying electricity to government entities. AGEL’s recent acquisition of a 5 GW renewable power portfolio from SB Energy India for $3.5 billion reinforces its commitment to sustainable energy development, positioning the company as a key player in India’s renewable energy landscape. Learn more about Adani Green funding journey.

Adani Green Energy Company Overview

  • Founded in 1988 by Gautam Adani, Adani Green Energy (AGEL) stands as a prominent player in the renewable energy sector, dedicated to shaping a cleaner and greener future for India. Specializing in the development, construction, operation, and maintenance of solar and wind farm projects, AGEL exemplifies the Adani Group’s commitment to sustainability.
  • AGEL’s portfolio encompasses utility-scale grid-connected solar and wind farm projects, reflecting its comprehensive approach to renewable energy generation. Moreover, by harnessing solar and wind resources across 87 locations in 11 states, the company has made significant strides in electricity production.
  • A key aspect of AGEL’s operations is its focus on supplying electricity to central and state government entities as well as government-backed corporations. This strategic alignment with government entities underscores AGEL’s role in advancing India’s renewable energy agenda while contributing to national energy security and sustainability goals.
  • AGEL’s impact extends beyond electricity generation, with its projects contributing to substantial environmental benefits. To date, the company has generated over 4,373 million units of electricity and facilitated a reduction of 4 million tonnes of equivalent CO2 emissions, highlighting its pivotal role in combating climate change and promoting a greener energy landscape.

Acquisition Overview

  • Adani Green Energy has announced its acquisition of a 5 GW renewable power portfolio from SB Energy India, marking a significant stride towards expanding its renewable energy footprint. The acquisition, valued at $3.5 billion, underscores AGEL’s commitment to sustainable energy development.
  • Signed on May 19, the share purchase agreement entails the acquisition of a 100 percent stake in SB Energy from SoftBank Group and Bharti Group, previously holding 80 percent and 20 percent ownership, respectively. This strategic move further solidifies AGEL’s position as a key player in the renewable energy sector.
  • This acquisition marks AGEL’s fourth successive deal in the solar segment, reflecting its aggressive growth strategy. Previous deals include the acquisition of domestic assets of Sterling and Wilson and Toronto-based SkyPower Global. The momentum behind these acquisitions has been reflected in AGEL’s stock surge of nearly 13 percent in the last month.
  • The deal is expected to accelerate AGEL’s progress towards its renewable portfolio target of 25 GW, four years ahead of schedule. With this acquisition, AGEL’s total renewable capacity will reach 24.3 GW, with an operating capacity of 4.9 GW, further solidifying its position as a leader in the renewable energy landscape.

Also Read: Pine Labs Funding

Edtech Startup upGrad Set To Acquire Impartus

In the dynamic realm of online education, UpGrad stands as a beacon of innovation. Founded in 2015 with a vision to revolutionize higher education, UpGrad offers a diverse range of quality programs in Data Science, Technology, Management, and Law. Its comprehensive curriculum includes digital marketing, product management, entrepreneurship, and data analytics, providing learners with industry-relevant skills. Backed by robust student support services, UpGrad ensures an enriching learning experience. The recent acquisition of Impartus, rebranded as ‘upGrad Campus’, further strengthens its presence in HigherEd institutions. As a pioneer in online learning, UpGrad continues to shape the future of education, catering to evolving industry demands.

upGrad Company Overview

  • Founding and Vision: UpGrad was founded in 2015 by Mayank Kumar, Phalgun Kompalli, Ravijot Chugh, and Ronnie Screwvala with a vision to provide quality online higher education.
  • Program Offerings: UpGrad offers a diverse range of programs in Data Science, Technology, Management, and Law, catering to various career paths and industries.
  • Program Variety: Its programs include digital marketing, product management, entrepreneurship, data analytics, data-driven management, and digital technology management, providing comprehensive learning opportunities.
  • Industry Insights: UpGrad’s programs are designed to provide industry insights, ensuring that students receive relevant and up-to-date knowledge and skills.
  • Student Support Services: The platform offers robust student support services, including mentorship, career guidance, and networking opportunities, to enhance the learning experience.
  • Acquisition of Impartus: Bengaluru-based Impartus, founded by Amit Mahensaria, Alok Choudhary, and Manish Kumar, was acquired by UpGrad and rebranded as ‘upGrad Campus’, enriching its offerings.
  • Online Education Pioneer: Impartus played a crucial role in facilitating the transition of schools and colleges to online platforms, attracting over 280 higher education institutes, 50,000 teachers, and 6 lakh learners in just seven years.

Acquisition Overview

  • Acquisition Details: Mumbai-based edtech startup upGrad has acquired Impartus, a video-enabled learning solutions provider, in a deal worth INR 150 Crore.
  • Strengthened Presence: With this acquisition, upGrad aims to strengthen its presence among HigherEd institutions and learners, expanding its reach beyond working professionals.
  • Market Opportunity: upGrad anticipates adding 50,000 paid learners in the first year post-acquisition, capitalizing on the growing demand for online education.
  • Business Verticals: The acquisition results in upGrad Campus having two business verticals: B2C and B2B, catering to individual learners and institutional clients, respectively.
  • Course Offerings: Under the B2C vertical, upGrad will offer job-oriented courses in areas such as Full Stack Development, Artificial Intelligence, Digital Marketing, and Business Analytics, aligning with industry demands.

Startup Funding 101

Starting a new venture is an exhilarating journey filled with endless possibilities and potential for success. However, one of the most critical aspects of turning your idea into reality is securing adequate funding. While it may seem daunting, navigating the world of startup funding can be manageable with the right approach and knowledge. In this blog, we will provide you with a comprehensive guide on how to get started with startup funding.

  1. Define Your Business Idea and Validate It: Before seeking funding, it is essential to have a clear understanding of your business idea and its potential in the market. Validate your idea by conducting market research, identifying your target audience, and assessing the competitive landscape. This groundwork will help you refine your business plan and make it more appealing to potential investors.
  2. Bootstrap and Self-Funding: At the initial stages, consider bootstrapping your startup by using personal savings or seeking funds from friends and family. This self-funding approach demonstrates your commitment and confidence in your venture, making it more attractive to external investors later on. Bootstrapping also gives you greater control over your business decisions and equity.
  3. Craft a Solid Business Plan: A well-structured business plan is crucial for attracting investors. It should include an executive summary, market analysis, competitive advantage, marketing and sales strategy, financial projections, and a clear funding request. A comprehensive business plan showcases your understanding of the market and demonstrates the viability and growth potential of your startup.
  4. Explore Funding Options: There are various funding options available for startups, depending on their stage of development and specific needs. Some popular options include:
    a. Angel Investors: Angel investors are individuals who provide capital in exchange for equity. They often bring industry expertise and valuable connections along with their investment.
    b. Venture Capitalists (VCs): Venture capitalists invest in high-growth startups in exchange for equity. They typically fund businesses with significant potential and often provide mentorship and guidance.
    c. Crowdfunding: Crowdfunding platforms allow you to raise funds from a large number of individuals who believe in your idea. It is essential to create a compelling campaign and engage with your backers to maximize your chances of success.
    d. Government Grants and Programs: Research local, regional, and national government grants, loans, and programs that support startups. These initiatives often focus on specific industries or social impact ventures.
    e. Incubators and Accelerators: Joining an incubator or accelerator program can provide funding, mentorship, networking opportunities, and access to resources. These programs often have a competitive application process, so ensure your startup aligns with their focus areas.
  5. Build Relationships and Network: Networking plays a pivotal role in securing funding. Attend industry events, startup meetups, and conferences to connect with potential investors, mentors, and other entrepreneurs. Leverage social media platforms and professional networking sites to expand your network and establish relationships that can lead to funding opportunities.
  6. Prepare a Compelling Pitch: Craft a concise and compelling pitch to communicate your business idea effectively. Your pitch and pitch deck should highlight the problem your startup solves, the market opportunity, your unique value proposition, and your growth strategy. Tailor your pitch to different types of investors and be prepared to answer questions and address concerns.
  7. Due Diligence and Negotiation: Once you find potential investors, they will conduct due diligence on your startup. Be prepared to provide detailed financial information, legal documents, and any other relevant documentation. Negotiate terms that are favorable to both parties, ensuring you protect your interests while demonstrating flexibility.

Conclusion: Securing funding for your startup is a crucial step towards transforming your entrepreneurial vision into reality. By following the steps outlined in this guide, you can navigate the startup funding landscape with confidence.

When Should a Startup Consider Seeking Fundraising

When Should a Startup Consider Seeking Fundraising?

Embarking on the entrepreneurial journey is an exhilarating experience, filled with boundless possibilities and daunting challenges. One pivotal question that often looms over every startup founder is when to take the leap into the world of fundraising for startups. While the decision to seek external capital is multifaceted and deeply influenced by the unique circumstances of each venture, there are several key considerations that can guide entrepreneurs in making this critical decision.

Startup Consider Seeking Fundraising

Let’s see when should a startup consider seeking fundraising

1. Product Validation and Traction:

Before setting out to raise funds, it’s crucial for startups to validate their product or service in the market. Investors are more likely to be interested in a venture that has a proven concept and, ideally, gained some traction. Demonstrating a growing customer base, positive user feedback, or early revenue streams can significantly enhance a startup’s attractiveness to potential investors.

2. Market Opportunity:

Understanding the market dynamics and the scalability of the business idea is fundamental. A startup with a compelling value proposition in a sizable and growing market is more likely to attract investor interest. Investors seek ventures that have the potential for substantial returns, and a clear market opportunity is a key indicator of this potential.

3. Timing is Everything:

The timing of fundraising efforts is critical. While it might be tempting to secure funding as soon as possible, premature fundraising can lead to unnecessary dilution for the founders. On the other hand, waiting too long might cause missed opportunities or hinder the startup’s growth. Striking the right balance and assessing the optimum timing for fundraising for business is a delicate yet crucial task for founders.

4. Milestones and Growth Plans:

Founders should consider fundraising for startups when there are significant milestones to achieve or ambitious growth plans to execute. Whether it’s expanding the team, launching in new markets, or investing in product development, having a clear roadmap for utilizing the funds instills confidence in potential investors. Fundraising should align with the strategic goals of the startup.

5. Financial Health and Runway:

Analyzing the financial health of the startup is paramount. It’s crucial to have a clear understanding of the company’s runway—the time it can operate without additional funding. Startups should initiate fundraising efforts well in advance of running out of cash to ensure they have the negotiating power and avoid desperate fundraising situations.

6. Network and Relationships:

Building a strong network within the industry and fostering relationships with potential investors can be advantageous. Sometimes, the right time to seek funding is when a startup has cultivated relationships with investors who understand the business, believe in the founders, and align with the company’s vision.


Determining when to seek fundraising is a nuanced decision that requires a thoughtful evaluation of the startup’s progress, market dynamics, and future goals. While there’s no one-size-fits-all answer, aligning fundraising efforts with validated milestones, market opportunities, and strategic growth plans can significantly enhance a startup’s chances of securing the capital it needs to thrive in the competitive business landscape.

reasons startups fail

Top 7 Reasons Startups Fail

Embarking on the entrepreneurial journey is an exhilarating endeavor, but statistics reveal that not all startups make it to the finish line. Understanding the common reasons behind startup failures is crucial for aspiring entrepreneurs to navigate the complex landscape and enhance their chances of success. In this exploration, we unravel seven prevalent reasons why startups often find themselves at the crossroads of failure, shedding light on the critical insights needed to overcome challenges and thrive in the competitive market. Explore these insights to mitigate the risks and chart a successful path forward in the dynamic startup ecosystem. Discover the key factors behind reasons startups fail.

Reasons Why Startup Fails

Exploring the crucial reasons startups fail to help budding entrepreneurs avoid common pitfalls and achieve success:

1. Inadequate Market Understanding

A fundamental misstep that often leads to startup failure is an inadequate understanding of the market. Many entrepreneurs dive into their ventures with an unwavering belief in their product or service, only to discover later that there isn’t a substantial market need for it. This lack of market research and insight can result in a misalignment between the product and consumer demand.

Successful startups are built on a foundation of deep market understanding. Entrepreneurs must conduct thorough market research to identify existing gaps, understand customer pain points, and ensure that their offering resonates with the target audience. Failure to do so leaves startups vulnerable to the harsh reality that their innovative solution may not be as revolutionary as initially perceived.

2. Changing Market Conditions

Startups are particularly susceptible to changes in market conditions. The global landscape is dynamic, and unforeseen events, such as economic downturns or global pandemics, can significantly impact business operations. The COVID-19 pandemic, for instance, highlighted the vulnerability of startups that were unable to adapt swiftly to the sudden market shifts.

Entrepreneurs must cultivate resilience and flexibility in their business models to withstand unforeseen challenges. A proactive approach involves scenario planning, ensuring that the startup is equipped to pivot when necessary. Adapting swiftly to changing market conditions can mean the difference between survival and failure.

3. Poor Market Timing

Timing is a critical factor in the success of a startup. Even with a brilliant idea and a well-executed plan, poor timing can lead to missed opportunities and, ultimately, failure. A product launched too early may struggle to gain traction if the market is not yet ready for it, while a delayed launch may result in losing the competitive edge.

Entrepreneurs need to carefully assess the market dynamics, monitor trends, and strategically time major product launches and marketing initiatives. Understanding the market’s readiness for a new product or service is essential for capitalizing on opportunities and avoiding the pitfall of poor timing.

4. Cash Flow Issues

Cash flow problems rank among the top reasons startups fail. Most startups rely on external funding, whether from investors or venture capitalists, to fuel their operations until they achieve profitability. However, if a startup fails to generate revenue quickly enough, investors may lose confidence, leading to a cash flow crunch.

Managing cash flow effectively is a critical aspect of startup survival. Entrepreneurs must prioritize sustainable financial practices, explore alternative funding sources, and demonstrate a clear path to profitability. A proactive approach to securing capital and maintaining financial stability is indispensable for preventing cash flow issues from becoming insurmountable obstacles.

5. Flawed Business Plan

Having a business plan is a startup fundamental, but the quality of the plan is equally important. A flawed business plan can sow the seeds of failure by overlooking critical factors, miscalculating costs, or underestimating the time required for production and marketing. A one-size-fits-all approach to business planning seldom yields success.

Entrepreneurs should meticulously craft a comprehensive and realistic business plan that considers all relevant factors. Seeking guidance from experienced mentors or industry experts can provide valuable insights and help identify potential flaws in the plan. A robust and adaptable business plan is an indispensable roadmap for steering a startup toward success.

6. Poor Recruitment Practices

The success of a startup is intrinsically tied to the capabilities and cohesion of its team. Ineffective recruitment practices that overlook the importance of assembling the right talent can impede innovation, hinder problem-solving, and contribute to a startup’s downfall.

Entrepreneurs must prioritize strategic and thoughtful recruitment. Identifying individuals with the necessary skills, cultural fit, and a shared commitment to the startup’s vision is crucial. Building a diverse team with complementary strengths enhances the startup’s ability to navigate challenges and capitalize on opportunities, fostering an environment conducive to success.

7. Weak Foundational Partnership

The dynamics among co-founders play a pivotal role in determining a startup’s trajectory. When co-founders lack effective communication, shared values, and a unified vision for the company, the foundation of the startup becomes fragile. Discrepancies in interests and goals can escalate into conflicts that jeopardize the very essence of the venture.

Establishing a strong foundational partnership is essential for startup success. While co-founders may have differing strengths and weaknesses, aligning on fundamental values and overarching goals is paramount. Regular communication, mutual respect, and a commitment to resolving conflicts constructively are integral components of a resilient co-founder relationship.


Startups face a myriad of challenges on their journey, and acknowledging these common reasons for failure is a vital step toward building a robust and enduring business. By addressing these pitfalls through informed decision-making, strategic planning, and adaptability, entrepreneurs can significantly enhance their chances of steering their startups toward sustainable success.

Also Read: Importance of Business Valuation

How To Raise Seed Capital For Startups To Grow

How To Raise Seed Capital For Startups To Grow

Startup founders often encounter a common challenge: while possessing a compelling idea with genuine potential, a budding team, and a solid roadmap for market entry, they grapple with certain obstacles. These may include securing adequate funding, navigating regulatory hurdles, and establishing a robust customer base. Addressing these challenges effectively is pivotal for startups to realize their vision and thrive in the competitive business landscape, especially when seeking seed capital for startup growth.

What is Seed Funding?

Seed funding refers to the initial capital raised by a startup during its earliest stages of development. This funding is typically utilized to cover initial expenses such as market research, product development, and building a team. Seed funding is crucial for startups to validate their business idea, create a prototype, and attract further investment from venture capitalists or angel investors. It’s often sourced from friends and family, angel investors, or early-stage venture capital firms. Seed funding sets the foundation for a startup’s growth and eventual success by providing the resources needed to bring their vision to life.

Startup Funding Stages

Startup funding stages refer to the various rounds of investment a startup goes through as it progresses from conception to maturity. These stages typically include seed funding, where initial capital is raised to develop the idea or prototype. This is followed by early-stage funding, often from angel investors or venture capital firms, to support product development and market validation. As the startup grows, it may seek further funding through Series A, B, and C rounds to scale operations and expand market reach. Each funding stage represents a milestone in the startup’s growth trajectory, providing capital for different phases of development.

Why Should You Raise Seed Capital?

Many startups encounter challenges reaching a stage where their product is market-ready without significant financial backing. Costs associated with product development, employee salaries, and infrastructure expenses accumulate swiftly, often amounting to hundreds of thousands of dollars before a viable product is ready for sale.

Seed capital for startups plays a critical role in funding essential developmental stages for startups. It provides the necessary capital for product development, marketing initiatives, public relations efforts, and hiring key personnel such as a VP of Product or CTO. This initial infusion of funds is instrumental in laying the groundwork for a successful business launch.

Moreover, seed funding enables startups to invest in building a competent sales team, a crucial component for driving revenue growth and expanding market reach. By providing resources for vital operational aspects, seed funding empowers founders to focus on scaling their business and achieving long-term success in the competitive market landscape.

How is Seed Funding Different From Series A and Pre-Seed Funding?

Series A, B, and C rounds progress in a clear sequence, but the placement of seed and pre-seed funding may be less apparent. Pre-seed funding precedes seed funding, which in turn precedes Series A investment. Therefore, the order typically unfolds as follows: Pre-seed, Seed, Series A, and subsequently Series B, among others. Variations between these rounds primarily involve the investment size, company valuation, and the developmental phase of the business.

Here’s a breakdown of the key differences between pre-seed, seed, and Series A funding rounds:

1. Pre-seed Funding:

Funding Amount: Typically ranges from $50k to $250k.
Company Stage: At this stage, the startup has developed a minimum viable product (MVP) and identified a clear target market.
Typical Company Valuation: Valuations range from $1m to $3m.
Most Common Investors: Investors at this stage often include friends, family, and accelerators.

2. Seed Funding:

Funding Amount: Ranges from $500k to $2m.
Company Stage: Startups in this stage have established product-market fit and are building their team.
Typical Company Valuation: Valuations typically fall between $5m to $15m.
Most Common Investors: Angel investors and some venture capitalists are prevalent in seed funding rounds.

3. Series A Funding:

Funding Amount: Typically falls between $2m to $15m.
Company Stage: Startups at this stage have an established user base, consistent revenue growth, and have validated some market assumptions.
Typical Company Valuation: Valuations vary more widely, with an average valuation of around $24m.
Most Common Investors: Series A funding rounds are primarily backed by venture capitalists (VCs).

How to Get Seed Funding

Securing seed funding involves various steps, including identifying the appropriate funding type, determining the required funding amount, crafting a compelling pitch deck, engaging with potential investors, and ultimately reaching an agreement. Now, let’s delve deeper into each of these essential steps.

1. Make Sure The Timing Is Right

Your initial step in the funding process is to assess whether the timing aligns with your needs and if seeking seed funding is necessary. This decision hinges on two key aspects:
Willingness to relinquish a portion of company ownership.
Ability to meet investor expectations and present a compelling case for investment.
The initial choice is deeply personal, as it’s ultimately your decision whether you’re comfortable sacrificing equity for funding. However, in many cases, this is necessary for ventures requiring substantial capital to progress.

To attract potential investors, you must substantiate:

  1. Product: Having an MVP is essential, along with evidence of initial customer adoption and product growth.
  2. Market: Demonstrating significant market potential and how your product fulfills a pressing market need.
  3. Team: Convincing investors of your team’s ability to execute and scale the business effectively.

If these criteria are met, the timing for seeking funding is appropriate.

2. Choose Your Funding Source

Various avenues exist to secure seed funding, each with its own advantages and disadvantages.

Venture Capitalists:

Venture Capitalists (VCs) are specialized firms dedicated to funding businesses. They represent the conventional funding route, especially for Series A funding and beyond. While some VCs offer seed funding, the process typically involves rigorous scrutiny, multiple meetings, and engagement of various stakeholders.

Angel Investors:

Angel investors constitute another common source of seed capital for startups. These affluent individuals invest personal funds in early-stage startups. Unlike VCs, angels expect a faster funding process with less due diligence, albeit in exchange for a larger equity stake.

Now the question is how to find the perfect angel investor for your startup.

Friends and Family:

Many startups secure seed funding from close acquaintances or family members, offering some flexibility in terms (e.g., treating it as a loan). However, this approach risks blurring personal and professional boundaries, potentially leading to complications.


Platforms like Kickstarter have popularized crowdfunding as an alternative. Startups create campaigns based on product pre-sales, persuading numerous donors to invest before the product launch. Successful campaigns enable the development and delivery of products to initial investors.

Accelerators and Incubators:

Entities like Y Combinator aid founders in launching and expanding their ventures. They may request equity in exchange for support and occasionally offer seed capital for startups.


Some startups thrive without external funding, relying on personal investment or business profits for growth. Although rare, successful bootstrapped companies like Facebook and Apple exist, highlighting alternative paths to success.

3. Determine How Much Seed Money You Need

We’ve established that the average seed investment ranges from $500k to $2m, providing a rough estimate. However, investors prefer precise figures, so it’s essential to specify the exact amount of funding you require.

Ideally, the funding should be adequate to achieve profitability. For software startups, this is feasible since product development costs are relatively low. Even with a simplified version of the final product, you can expand market share and revenue.

Physical product startups may find it challenging to attain profitability with seed funding alone due to higher production costs. In such cases, the objective is to secure funding to reach the next milestone, typically within 12-18 months.

Calculating the required funding involves determining the number of months of operation needed. For instance, if funding is required for 12 months and involves six engineers costing $15k monthly, the total needed would be $1,080,000 (approximately $1m).

4. Get Prepared To Approach Investors

Investors seek assurance of prospective success before committing funds to your startup. While some of their judgement may be based on subjective factors, such as their perception of you and your team’s capability to execute the vision, the majority hinges on concrete strategies and financial projections.

In essence, does it appear promising in documentation? You must be equipped with an executive summary and pitch deck encompassing:

  • Company identity: name, logo, tagline
  • Vision statement: long-term purpose
  • Problem statement: addressed by your product
  • Customer profile: characteristics of your target audience
  • Solution overview: product details and timing relevance
  • Market analysis: size, trends, competition
  • Traction: current progress and projected growth
  • Business model: revenue generation from customers
  • Financial forecasts: revenue, expenses, profits
  • Expense breakdown: including utilities, salaries, rent
  • Long-term strategy: future product development and financial planning
  • Team introduction: roles and expertise
  • Fundraising status: previous funds secured and funding requirements.
  • Build A List of Potential Investors: Securing seed funding can be an arduous journey, often involving numerous engagements with potential investors. A strategic approach akin to a sales funnel can streamline this process.

At the top of the “investor funnel,” cast a wide net by identifying and reaching out to a broad array of potential investors. This initial outreach serves to generate interest and awareness about your startup and its investment opportunity.

As you move further down the funnel, focus on nurturing relationships with investors who have expressed genuine interest. Provide them with detailed information about your venture, addressing their inquiries and concerns effectively.

Ultimately, the goal is to guide investors through the funnel, converting their interest into concrete investment commitments. By adopting a systematic and targeted approach, you can maximize your chances of securing the seed funding needed to propel your startup forward.

5. Meet With Interested Seed Investors

Refining the art of meeting with investors is a skill that develops with practice. Fortunately, you’ll likely engage with numerous investors before finalizing a deal, allowing you to gain valuable experience swiftly.

When interacting with potential seed investors, adhere to several crucial guidelines:

  • Understand your audience by researching their investment preferences and rationale.
  • Keep your pitch concise and focused on essential details.
  • Demonstrate active listening to show respect, learn, and foster trust.
  • Present your ambitious vision while substantiating it with factual evidence.
  • Strike a balance between confidence and humility to convey belief in your idea without appearing arrogant.

6. Negotiate The Final Deal

Negotiating can be challenging for many startup founders, especially when dealing with experienced venture capitalists or angel investors. Given their familiarity with such discussions, founders often find themselves at a disadvantage. It’s wise not to engage in real-time negotiations but instead take the time to carefully consider the terms being offered. While it’s essential to avoid wasting time, founders should explore opportunities to negotiate factors like equity compensation to ensure a fair deal.

It’s crucial to recognize the long-term implications of the terms being negotiated. Even small adjustments in equity percentages can have significant ramifications for the company’s future valuation and the founders’ ownership stakes. Therefore, founders should weigh these considerations carefully before reaching an agreement with investors.

Ultimately, the primary objective is to secure the investment needed to fuel the startup’s growth. Once mutually agreeable terms have been reached, founders should promptly proceed to finalize the paperwork and close the deal. While it’s important to advocate for favorable terms, it’s equally vital not to let negotiations drag on to the detriment of the overall funding process.

Also Read: When Should Startup Look For Fundraising

College Startups that went on to become Great Companies

While everyone else was looking for a job through placements, Shashank ND and Abhinav Lal decided to start their own company. Of course, this was a risky choice, but they believed it was preferable to having a job through their placements. They only dreamed of one thing: success, and they knew that if they followed the right direction, they would receive higher rewards than they had previously received. As a result, they both began the tale of one of the country ‘ s most successful healthcare startups. 

Total Funding: $251M 

Last Funding Round: $32M, Series D, Aug 03, 2020 

Valuation: $904M as on Aug 04, 2020 

Bewakoof’ s founders, Prabhkiran Singh and Siddharth Munot, were sitting outside their campus, brainstorming possible business ideas. Tshirt printing was chosen because it fit with their goal of introducing a sense of humor into the lives of college students. Bewakoof was born as a result of this. When Prabhkiran Singh and Siddharth Munot were looking for a domain name for their newly launched t-shirt printing company in 2010, they came across Bewakoof.com and bought it right away.

Total Funding: $20.5M 

Last Funding Round: $4.13M, Series B, Mar 18, 2021

Valuation: $70M as on Oct 05, 2019 

While pursuing a Bachelor of Commerce at Shri Ram College of Commerce, Anshul Gupta evolved into an entrepreneur at a young age. A football and house music enthusiast founded Fabence, a personalized fashion discovery engine, and shopping assistant. Shopping in real-time is not the same as clicking “Buy Now ” and piling up products in shopping carts. By personalizing the products you buy, Faience hopes to bridge that gap. 

Total Funding: $157K 

Last Funding Round: $157K, Angel, Jun 01, 2015 

Divyansh Saxena co-founded Notemybook with Vikramank while studying Computer Engineering at Vivekanand Education Society ‘ s Institute of Technology in Mumbai. They were inspired by their seniors, who had adopted a similar concept during their college days, and decided to carry it on, so Notemybook was born. Customers are 80,000 engineering students, since the program is currently only available to engineering students, although it will be extended to include medical, MBA, and other fields in the near future.

At the age of 21, Satwik Mishra formed his first company, Mechjunction. During his time as a student, he encountered many obstacles in meeting his educational needs. As a result, he came up with the concept of putting all mechanical engineers ‘ needs in one place, thus promoting his field of interest. Focusing on the same MECH JUNCTION is rolling out in a great fashion towards its goal and targets. They provide a large range of services and opportunities ranging from training programs, prototype projects, conferences, competitions, internships. 

Bluegape was established by Ayush Varshney and Sahil Baghla, both IIT Kanpur students, in their hostel rooms. They didn ‘t have much of a financial problem because Sahil had an internship in the United States. Printing posters piqued their interest as a possible business venture, and they began by selling to students on campus.

Total Funding: $1.1M 

Last Funding Round: $600K, Series A, Aug 20, 2015 


ZunRoof is a home-tech startup that provides homeowners with smart and renewable energy options. By using underutilized rooftops, the startup assists in the generation of electricity by solar energy. The Gurugram-based startup, established in 2016 by Pranesh Chaudhary and Sushant Sachan, aims to become India ‘ s largest solar rooftop provider. 

Total Funding: $4.7M 

Latest Funding (Series A): $3M from Godrej family office 

TrulyMadly is a popular dating and matchmaking app in India, with over five million users. Snehil Khanor and Sachin Bhatia founded the company in 2014, and it claims to have made over 20 million shared matches in the last five years. With pollution levels in New Delhi skyrocketing and groundwater levels dropping, TrulyMadly made the conscious decision to use waterless urinals to fix the groundwater problem. 

Total Funding: $9.11M 

Last Funding Round: $2.1M, Series A

The Man Company, based in Gurugram, is a male grooming startup founded by Bhisham Bhateja in 2015. According to the startup, they are meticulous regarding the ingredients they use, in addition to providing consumers with items that are helpful to their aesthetic enhancement. Their whole product line is infused with natural oils and is free of toxic chemicals. 

Total Funding: $3.53M 

Nocca Robotics is a company that creates solar panel cleaning robots. The S100 robot was created to provide a water-free cleaning solution. SCADA systems control and track the climb up to a 40mm gap in height. Theft security, fall protection, and robot stuck services are all available. 

Total Funding: $2M