7 technology ventures incubated at the prestigious IIM Udaipur Incubator, pitch to early-stage venture capital funds seeking seed capital.
By Prutha Atre
March 2021, marked the start of one of the most difficult times the world had ever seen. Covid-19 hit. Everything came to a standstill. While uncertainty is a part of a startup's DNA, this pandemic and the disruption in the supply chain were completely unprecedented. The struggle to survive was just beginning for small businesses. The small business owners were trying everything within their means to extend their cash runway to support their employees who looked up to them for a plan and a paycheck.
One plausible way of solving the unexpected cash crunch was to increase access to capital. And the first step towards this was to connect small business owners with relevant investors.
In April 2021, FundEnable partnered with IIM Udaipur to organize a virtual investor connect program, a demo day, for a curated set of entrepreneurs as a part of the incubator's Launch-n-Zoom Startup Accelerator Cohort 3.0. This time the demo day was not just a showcase or handshake event between entrepreneurs and investors. In order to support entrepreneurs better, our internal team of investment bankers assisted entrepreneurs in every step of the fundraising process - right from evaluating funding readiness, preparing for the pitch, and negotiating the right investment deal.
FundEnable partners with incubators to provide fundraising support to incubated startups through 1-on-1 mentoring, investor access, investment banking services, & more.
- IIM Udaipur Incubation Team
Here's all you need to know about IIM Udaipur's Demo Day!
Step 01: Identification of Investment Ready Startups
A panel of industry experts reviewed all startup applications and conducted 1-on-1 interviews with the startup founders. Following the interviews, there was a second review of all applications in which 5 startups were selected from a cohort of 15 startups. The key selection criteria were innovative quotient, value proposition, monetization model, and barriers to entry.
Step 02: One on One mentoring for demo day preparation
Every startup founder was paired with a mentor basis the startup's sector and funding round. The mentors assisted the founder in creating a pitch deck, building financial projections, and arriving at a fund utilization plan. Basis the mentor's feedback, our team reached out to relevant venture capital funds and angel groups to evaluate the startups for potential investments.
Step 03: Mock pitching sessions
Pitching to investors is a daunting task, especially the first time. To ensure that the entrepreneurs make the most of the opportunity, the assigned mentors conducted mock pitching sessions. The format was the same as the actual pitch. 10 minutes of pitch time followed by 10 minutes of Q&A.
Step 04: Demo Day
On the Demo Day, 10 Venture Capital Funds from all over India virtually joined to evaluate startups. Separate breakout rooms were assigned to all fund representatives, allowing investors and founders to talk one-on-one. 50 investor-founder meetings took place and investors provided detailed feedback along with an indication of interest to invest.
Step 05: Further Engagement
Basis investor feedback, FundEnable's investment banking team will guide founders through the processes of valuation negotiation, term sheet closure, due diligence process, and funding-related compliance procedures.
FundEnable is keen on replicating the success of this Demo Day to support entrepreneurs pan India in these difficult times. We look forward to partnering with startup incubators to help incubated startups connect with relevant investors and actualize their growth milestones.
Originally published May, 2021
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