Fundraising 101: A Simple Guide for Startup Founders
Don't let complex finance jargon stall your growth. This is my straightforward, no-nonsense video series that breaks down fundraising, valuation, and compliance into steps you can actually use.
In Part 1 of the series, I introduce the basics of startup fundraising. I explain what it is, why companies do it, and the different sources of funding, from friends and family to venture capitalists and IPOs.
How is a startup valued? This episode covers the key factors that affect a company's valuation, including the stage of the company, market trends, and the experience of the founding team.
Angel Tax can be a confusing topic for founders. Here, I break down Section 56(2)(7B) of the Income Tax Act, explaining what it means when you issue shares at a premium and how it impacts your startup.
A term sheet is a critical document in any fundraising deal. I explain what a term sheet is, what key details it includes, and why it's considered a non-binding blueprint for your relationship with an investor.
Due diligence, or DD, is a crucial step after the term sheet. In this video, I explain the three main types of DD: financial, direct tax, and indirect tax, so you know what to expect and how to prepare.
To prepare for due diligence, you need a well-organized data room. This clip provides a practical guide on how to create and structure a data room with all your essential company documents.
About Fundraising 101: Online Video Series
When you are in the middle of fundraising, organizing your data room properly is half the battle. In my videos, I show you how to structure these folders before a consultant even sends you a checklist, which helps you stay ahead of the game during due diligence.
Finance doesn't have to be a scary, mysterious part of running a business. I created this Fundraising 101 series because I see too many founders getting stuck on the technicalities of term sheets and valuation when they should be focusing on their product.
In this series, we cover the essentials:
- Valuation: We demystify how investors actually value a startup, moving beyond just the numbers to look at the market and the team.
- Angel Tax: I explain Section 56(2)(7B) in simple terms, so you understand the risks of issuing shares at a premium.
- Term Sheets: Learn why this document is a non-binding blueprint rather than a final contract, and what key clauses you need to look out for.
- Due Diligence: I break down the process into financial, direct tax, and indirect tax checks, giving you a clear roadmap of what investors will dig into.
Whether you are based in Kochi, Bengaluru, or anywhere else, the fundamental rules of fundraising remain the same. My goal is to make sure you have the financial literacy to hold your own in a meeting with VCs or angel investors. If you want to dive deeper into your specific business model or need help prepping your pitch deck, you can reach out for a one-on-one session.
Need specific finance help for your business?
Search for topics like tax compliance, valuation, or fundraising support.
More from Corporate Training & Speaking Engagements by Abhijith Preman
More services by Abhijith Preman