Fund Raising Opportunities
Many Startups choose to not raise funding from third parties and are funded by their founders only (to prevent debts and equity dilution). However, most startups do raise funding, especially as they grow larger and scale their operations.
If you are an entrepreneur seeking to understand why funding is needed, types of funding available, and how to raise funding, then AIC – ADT helps you and guide to raise funding opportunities for your startups at different levels.
N-Tech Digital Pvt. Ltd.
Mr Prafull Nehete invented digital artificial insemination gun and he raised funding of Rs. 22,00,000 under Samriddhi 2019 of IVRI Bareilly.
Brazilina Agro-equipment Pvt. Ltd.
Mr Shubham Jadhav funded by AIC-ADT Baramati Foundation for an amount of 2,00,000 lakh for his patented innovation ( Calf Puller ) .
Biotrimantu & Fodds Pvt. Ltd.
Mr.Kabir Patil incubatee of AIC-ADT Baramati Foundation.
TYPES OF FUNDING
|CHARACTERISTICS OF INVESTMENT||EQUITY FINANCING||DEBT FINANCING||GRANTS|
|Nature||There is no component of repayment of the invested funds.||Invested Funds to be repaid within a stipulated time frame with interest||There is no component of repayment of the invested funds/td>|
|Risk||Risk factor for the investor is higher as he has no guarantee against his investment||Risk Factor for the investor is lower as he generally has collateral against his investment||There is no risk factor for the startups as no collateral is involved|
|Pressure for Repayment||Less pressure for startups to adhere to a repayment timeline but added pressure from investors to achieve growth targets||More pressure for startups to adhere to repayment timeline and as a result more pressure to generate cash flows to meet interest repayments||No pressure for repayment as grants are a form of monetary support provided for a specific purpose|
|Return to Investor||Capital growth for investors||Interest payments||No Return|
|Involvement in Decisions||Equity Fund Investors usually prefer to involve themselves in decision making process||Debt Fund have very less involvement in decision making||No direct involvement in decision making|
|Sources||Angel Investors, Self-financing, Family and Friends, Venture Capitalists, Crowd Funding, Incubators/Accelerators||Banks, Non-Banking Financial Institutions, Government Loan Schemes (CGTMSE, Mudra Loan, Standup India)||Central Government, State Governments, Corporate Challenges, Grant Programs of Private Entities|
Government Initiatives for Startups
National Initiative for Developing and Harnessing Innovations
SIDBI (Small Industries Development Bank of India)- Major funds managed by SIDBI:
- Fund of Funds for Startups: $1.43 Billion funds available for contribution to various Alternative Investment Funds (AIFs)
- India Aspiration Fund: Around $286 Million funds sector agnostic fund for startups
- ASPIRE Fund: $44.34 Million funds available for funding agro-based start-ups
Venture Capital Scheme:
- Small Farmers’ Agri-Business Consortium (SFAC) has sanctioned venture capital assistance to 484 Projects amounting to $20.13 Million having project cost of $233.30 Million during January to December 2018.
Multiplier Grants Scheme:
- $5.15 Million support funds to reform R&D of start-ups through industrial linkages.
New Generation Innovation and Entrepreneurship Development Centre (IEDC):
- Provides one-time, non-recurring financial assistance up to a maximum of $35,755 for knowledge-based and technology-driven start-ups.
Aspire( A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship):
- It was launched by Ministry of Micro, Small and Medium Enterprises. It aims to set up a network of technology centres and to set up incubation centres to accelerate entrepreneurship and to promote start-ups for innovation in agro-based industries.
Start-ups Intellectual Property Protection (SIPP) scheme:
- It was launched to encourage innovation and creativity in startups. Under this scheme, 80% rebate for patent filing fees and 50% for trademark filing is provided to startups.