Are you ready to Raise Funds?

blog

Before you seek investment, you need to master these 7 startup words

1. Incubator
An investment subsidy of 20% of the value of capital expenditure, other than land construction, should be paid to incubation projects that enter into an MoU with the state within 2 years after the notification of this scheme/policy in the case of private sector incubators. The amount of the subsidy would be capped at Rs. 50 lakh.

2. Nondisclosure agreement (NDA)
A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), is a legal agreement or written agreement among at least two gatherings that highlight top-secret information, awareness, or details that the parties wish to share for specific purposes. Its a contract in which the parties agree not to reveal any of the information protected by the contract. A non-disclosure agreement (NDA) establishes a private connection between the parties, usually to preserve sensitive and proprietary information or trade secrets. As a result, an NDA safeguards non-public business data. If the contracted activities are illegal, they, like all agreements, could be imposed. Individuals who are fired as a result of their complaints about unethical acts or unequal treatment against and harassment of themselves may be compensated if they sign a nondisclosure agreement (NDA) prohibiting them from exposing the events complained about. Although such terms in an NDA may terrify a former employee into quiet, they may not be legally enforceable.

3. Pivot
Pivots are available in a variety of flavours, each intended to assess the effectiveness of a distinct assumption well about product, marketing strategy, or growth engine. Pivot zoom-in. This emphasises the need for "concentration" and a "minimal viable product" (MVP), both of which should be supplied fast and effectively. Pivot outwards. In the other case, a single feature may be inadequate to maintain a client base. What was formerly considered the entire offer is becoming a unitary phenomenon of a much bigger offering in this sort of pivot. Pivot the platform. A transition from an application to a platform, or vice versa, is referred to as this. Many entrepreneurs see their solution as a platform for future businesses, but they dont yet have a single killer app. Customers prefer to buy solutions rather than systems. The capture of value is crucial. This relates to the revenue model or monetization. Changes in a startups value capture strategy can have far-reaching implications for the companys business, product, and marketing initiatives. The "free" approach captures very little value.

4. Seed round or Seed stage
This crucial stage of seed funding occurs so early in the process that it isnt even considered startup funding. The pre-seed funding stage generally refers to the time when a startup is getting its operations up and running.
During the pre-series stage, its unlikely that investors would invest in return for ownership in the firm. This step may take a long time or you may be able to obtain pre-series investment quickly. It depends on the type of your startup and the first expenditures that you must factor into your business model development. A startup firm may only have limited access to finance and other resources. Because it has no history, track record, or measure of success, banks and other investors may be hesitant to invest. Many company leaders seek first funding from individuals they know, such as family and friends. Seed capital is the term for this type of funding. Seed capital, often known as seed money or seed finance, refers to funds raised by a startup or small firm in its early stages. It does not have to be a substantial sum of money. Cashs usually a little sum because it originates from personal sources.

5. Valuation (pre-money valuation, post-money valuation)
In most cases, determining post-money value is a simple procedure. There are two common methods for calculating a companys post-money value. To begin, simply add the value of the investment to the companys pre-money worth. You may also compute post-money valuation by dividing the new investment amount by the number of shares received for that investment, then multiplying the per-share price by the number of total issued shares post-investment. In most cases, determining post-money value is a simple procedure. There are two common methods for calculating a companys post-money value. To begin, simply add the value of the stock to the companys pre-money worth. You may also compute post-money worth by reducing the new funding amount by the number of shares received for that investment, then multiplying the per-share price by the number of total issued shares post-investment.

6. Venture capitalist (VC)
A venture capitalist (VC) is a leveraged buyout entrepreneur who invests in high-growth companies in exchange for a share of the companys ownership. This could include funding new ventures or assisting small businesses that want to grow but dont have access to the stock market. Limited partnerships (LPs) are commonly used to construct venture capital businesses, in which the partners participate in the VC fund. A panel is usually responsible for making investment decisions for the fund. Following the identification of prospective emergent growth companies, the pooled investor funds are used to support these companies in exchange for a significant equity interest.

7. Vesting
The process of acquiring a complete right that cannot be taken away by a third party is known as vesting. A startup first offers each founder a bundle of stock as part of the founders equity. However, if a founder leaves without putting effort, the firm can renounce or buy back the unvested shares. A founder receives complete ownership of the firm over some time termed a vesting schedule, which cannot be lost by the company.
Vesting stock is a sort of restricted stock that varies from stock options, which are frequently given to employees as bonuses.