Published On: July 27th, 2020
BUDDING ENTREPRENEURS AND STUDENTS WHO POSSESS AN INNOVATIVE BUSINESS PLAN WILL APPROACH ANGEL INVESTORS OR VENTURE CAPITALISTS FOR FUNDING. UPON IMPRESSING THE FUNDRAISER, THEY GET THE NECESSARY RESOURCES TO MOVE FORWARD ON THEIR ENTREPRENEURIAL JOURNEY.
But approaching an investor could be intimidating to students. For this, understand the given-below norms on how to draw the attention of an Investor to fund your ideas. Below is a short guide of 5 positive steps to approach an investor as a student entrepreneur.
“Today, you can build anything in India. If you’re an Indian entrepreneur, you get a meeting with any investor in the world” says Vijay Shekhar Sharma, Paytm
5-Positive STEPS TO APPROACH AN INVESTOR AS A STUDENT ENTREPRENEUR
Your initial startup funding is an exhaustive process. Nonetheless, it is essential to get sufficient capital from an investor, both to run your business successfully as well as manage long-term expenses. Therefore, no matter how perfect and unique your business plan is, the investor will fail to spend cash for your idea, if your first impression is not good.
So, here’s how you should approach an investor to get early startup funds:
1. STREAMLINE WHICH TYPE OF INVESTMENT YOU WANT:
Decide whether you want to draw the attention of a VC, Angel Investor, a Crowdfunding platform, or a private equity player. Furthermore, you can do this by assessing the stage of your startup.
2. KEEP ALL YOUR FINANCIAL DOCUMENTS READY:
Before approaching the investor, prepare a list of all the legal documents and formats on-hand. It proves transparency and authenticity from your side to the investor. Apostille, Non-Compete Agreement, Memorandum Of Understanding, etc. include  this list.
3. SURF ONLINE AND CONNECT:
The Internet has all the information on finding the right investor. Consequently, finding one from social media and networking platforms like LinkedIn is easier if you have pre-decided about which type of investment to raise funds. Upon finding the investor, keep your message short and crisp. But ensure to give the necessary demographics of your startup’s vision and idea.
4. FIX AN INTERVIEW OR MEETING SCHEDULE:
Once contacted by the investor, patience is important. Therefore, wait for the investor to respond to your message or email. See-through if the investor has questioned anything specific about your business and respond passively. Or else, they would have mentioned a timeframe and date to have a direct oral or face-to-face conversation about your startup and its funding requirements.
5. DO IN-DEPTH MARKET RESEARCH:
Long before the interview happens, do a thorough online analysis. Use the recent market research strategies to support your idea with accurate details of the consumer base, sector, and the expected outcome from your startup to the user. Therefore, when you have a clear idea about who and what your target audience comprises, it is easier to answer the questions shot by the investor.
After all the steps get over, your fund amount will be decided and raised as per the guidelines of the investing platform. It is better to stress here that the approach and your startup idea is important and not your present age as a student.
The above steps work for a general investor and not specific to any government scheme. To join campaigns like ‘Startup India’, you must have the following criterion.
THE REGISTRATION PROCESS WITH “STARTUP INDIA” INITIATIVE
In addition, we have a few simple steps to approach the Startup India program.
- Get compliance  for PAN and other business incorporation, to label your startup as a Private Limited Company or as a Partnership firm.
- Go to the official site of ‘Startup India’  and register your company as an Indian startup by filling the necessary details online.
- Support the required documents by uploading all your legal and investment-related letters in the PDF format.
- State if you need tax benefits or not. Any Indian startup is exempted  from Income Tax for the 1st 3 years of commencement, as per section 80IAC with 100% tax rebate on the profit.
- Finally, upon the officers examining the reports, your startup will get a recognition number. You may also download the startup registration certificate upon successful completion of online documentation.
Furthermore, having a stellar product or service that operates on a recent technology is your catch here. This way, you can grab the attention of an investor as well as government initiatives like ‘Make In India’ quicker!
A BONUS PART
Are you a student entrepreneur looking for an investor to fund your business? Then go with:
- Student Entrepreneurship Development (SED) 
- Early-Stage Investor, “Rehan Yar Khan” of Orios Venture Partners 
- Angel Investor, “Rajan Anandan”, the Managing Director of Sequoia Capital  and Google India
- Venture Capitalist, “Bharati Jacob” of Seedfund 
- Nirvana Ventures 
- Legal Documents Needed Before Starting A Startup In India
- Annual Compliance Checklist for Startups
- Register your company as an Indian startup
- Tax Incentives & Exemptions to Startups in India 
- Student Entrepreneurship Development (SED)
- Orios Venture Partners
- Sequoia Capital India
- Nirvana Ventures