How to raise a seed/angel round as a deep tech startup?

How to raise a seed/angel round as a deep tech startup?

The deep tech startups and in fact, all of the modern-day startups are well, privileged indeed, simply because they need not worry much for unavailability of funding, which was a major issue earlier. The startups can now derive the funds that they need to run their business adequately.

The deep tech startups are now getting more funding than ever, and that is surely the way towards which the things must follow because of the rising expenses of everything and the dizzying competition that we are seeing. According to the recent statistics, the deep tech startups in India have doubled in terms of investments. The startups focused on deep tech have received more than 133 investments in 2021, worth over $1.4 bn. This is huge indeed and a leap from the 106 deals that were signed to the deep tech startups in 2020, and the 107 deals that were converted in the year before that as per a prominent journal.

Now, if a startup founder is not so great at fundraising and bootstrapping is also not his/her cup of tea, the situation becomes little difficult but not so uncommon, many a times seen with techie founders with less industry experience. Under such circumstances, SanchiConnect can be of immense value for such founders. Moreover, SanchiConnect is also there for all the deep tech investors and startups of India. With its failsafe platform that brings the investors and the deep tech startups in India together and with its backing of some of the most reputed investors and VCs, Sanchi Connect is the destination that most entrepreneurs, investors, angels, VCs, and other deep tech enthusiasts can walk up to!

So, if a deep tech startup is new and wants to raise a funding round, then it must be starting with a seed/angel round in India.

What is a seed round and how it is important for a deep tech startup?

A seed round, as the name points out, is typically the first round or the seed investment that a startup receives. This peculiarly help startups get growing off the ground. Seed capital is one of the most vital rounds that a startup waits for if not the most round that they see. This is because it is the seed round that plays a central role for a startup to see the light of the day, and instills new hopes for the entrepreneurs, founding leaders, and others associated with the startup.

How you can go about raising a seed/angel round successfully as a deep tech startup in India?

A seed round is one such round that comes at the very beginning of a startup’s portfolio. This round can be received in one go or be divided into several tranches, which depend on the startups. So, if you are also an entrepreneur waiting to build your own deep tech startup in India and preparing to raise some deep tech funds in the form of seed capital, then here are some notable steps you can take:

Look for VCs and Angel Investors

Approaching a VC or other angel investors can be a good way to bring a seed funding to your startup, but getting the funds from them is not the easiest thing for a startup. They are heavily experienced and would serve as the best persons for bringing seed capital to startups but convincing VCs and other investors of their likes is not easy. It really takes time and effort.

Sieve out the VCs that invest in the Seed Round

Most of the VCs don’t invest in the seed rounds of startups and may invest at a later point when the startup has already created an MVP and sold it to some of its customers at least. Thus, sieving the VCs that invest in the seed round of deep tech startups in India, is a major thing to do early in the same. This brings us to the next point.

Start Researching for VCs Early in the Game

Yes, you’ve heard it right, well, two times, already, but you must understand that your research for the VCs who will seed and invest in your startup shall be started as early as possible. Therefore, while you are performing the ground for the presentation or the pitch that you would be landing to the investors, you should begin the same right away.

Know the Interest Areas of the VCs

Knowing the VCs that you would approach for your deep tech start is rewarding always. Start reading about the VCs, talking with the companies who have gathered funds from the same, both from your niche or any other industry as well, and know the VCs better. This will only help you improve your pitch, and secure your chance of funding.

Be a Master in your Domain

You should be the most informed person in the same domain in that you are wanting to build a business. Today, you have books, seminars, company profiles, and the internet, above everything else, which makes mastery in one domain easily achievable, albeit a lengthy procedure. However, you should never leave an inch of doubt or ignorance win over you. This is because if you sound confused or on unstable grounds on your subject, then you will lack credibility in front of the deep tech investors that you would be approaching for your deep tech startup.

Stand Out as a Profitable Venture Ahead

Profit is over anything else in business, and thus, the same holds true when it comes to raising deep tech funds for the Deep tech startups in India. So, make a foolproof business plan, complete with a revenue model that speaks clearly of the revenues that would be coming in right from the initial fiscals of the company’s operations. A profitable venture is always promising and gets crowned almost always at the end of the day.

Present them Clearly and Concisely

Clear and concise demonstrations work best when it comes to pitching a VC for a seed round. Presenting your pitch with 3 things or following the rule of 3 has worked wonders where you should ideally be able to describe a particular idea, a service, or a product just by using 3 adjectives or 3 images, or 3 slides. Following the 10-20-30 rule can also be a great add-on while presenting to your investors, where you:

  • Have 10 slides at hand
  • Take 20 minutes to present them
  • Use 30 points for the font size

Stay Calm and Wait

This last step is the most crucial step for the deep tech startups in India who are looking to raise a seed/angel round or any round as a matter of fact. After days of hard work, and anxiety, followed by sleep nights of labor and tensions, once you present the pitch to the VC/angel investors or your preferred investor, you need to rest and wait for the results. Piling on anxieties would only create more anxiety and mar you down along with others and ultimately the business.

SanchiConnect and How it Will Help the Deep tech investors and startups in India!

Deep tech startups are real visionaries of modern India, and SanchiConnect understands the value of building real deep tech companies, which is why it brings a platform that connects deep tech startups and deep tech investors in India on the same plane. This will mutually benefit both of them making deep tech funds flow, and ensuring the deep startups a good growth ahead!

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