LetsVenture is India’s most trusted platform for Startups for seed/angel funding. We connect startups with Global angels, VCs and Startup programs. In past 5 years, LetsVenture has enabled 170+ transactions with more than USD 70M infused into startups like Innov8, DailyNinja, YourDost, Bobble App, MyUpchar, TestBook, Ayurveda Experience, Ketto, Adpushup, Little Black Book, Drivezy, Porter, Wishberry etc.
Why should I sign up on LetsVenture?
Fundraising Startups :
- Access Investors: Connect with Angel Investors, Venture Funds from many countries.
- Get Featured, Get Funded: Get your Startup featured and close your fundraise faster (Business plan review, Investor connects and Paperwork closure).
- Manage Privacy: Control who can view your Startup profile (Allow and Block access)
- Apply to Incubators, Accelerators and Startup competitions
How does LetsVenture work for Startups?
Startups in Investor Connect :
- Register your startup profile with all the required information in public (visible to all investors on platform)/stealth mode (visible only to investors specifically chosen by you).
- Apply for Investor Connect - LV Startup team approves fundraise request or gives feedback to make your profile investor ready.
- Connect with investors through the platform.
- Investors express interest and commit money into your Startup.
Featured Syndicates :
- Once your startup receives good response in Investor Connect, LetsVenture works with you to either get a lead investor or reach out to more investors to close the round if you have a lead.
- LV Team makes you participate in online pitching sessions with angels on the platform.
- As more Investors express interest and commit funds, LetsVenture promotes your Startup under Featured Deals section
- Once the round is about 80% subscribed, LetsVenture team helps co-ordinate due-diligence, paperwork and transfer of money to your startup.
- All the investors come through a special purpose vehicle registered with SEBI (LV Angel Fund) as a single entity on your captable.
Is there any eligibility criteria for Startups to sign up on LetsVenture?
There is no eligibility criteria for startups. However we want serious entrepreneurs to be a part of this network – you can be a Startup in Ideation Stage, POC/Beta or Revenue Stage.
Does a Startup has to be involved in a particular area of business to be associated with LetsVenture?
No. You can be any business to connect to investors and other startups on our platform. We do see a lot of Tech Startups on the platform but Startups from non-tech sectors are also eligible to join and raise funds through the platform.
What all things to keep in mind to create a good LetsVenture startup profile?
When you are completing your startup profile, keep these things in mind which'll help you create a good LetsVenture profile.
When writing your twitter pitch, make it clear and unambiguous. One thing you can do when trying to create a one liner for your startup is to apply the mom test. If in one sentence you cannot tell your mom what you do, then you should rework the sentence. This is the first thing an investor reads, so taking time in crafting a good one liner is time well spent.
In Team Summary under Team tab: Write a one to two sentence short bio of yourself, your co-founders and your core team members. If you have founded companies before, mention it. Mention your education and previous experiences. If you have experience in the current market that your startup is in, then mention it. If you have mentors / advisors, you might want to mention them here. Every bit of info that shows your execution skills is relevant and should be put here.
In Team section under Team tab: Link LinkedIn profiles and upload photos of all your co-founders and core team members in this section.
In the Product / Service summary under Product tab: Just like your twitter pitch, describe what your startup does in simple and clear sentences. You can provide specific use cases / examples here if necessary.
In How are we different under Product Tab: Write about the differentiating factors from your competitors. What are the things that you are doing that your competition lacks or isn't doing well? What are your innovations and competitive advantages?
In Customer Traction Summary under Traction tab: Show month on month user growth percentages. For example: Month on Month growth: 42%. Also show the total number of users who have used your product. If you are in the B2B space, also mention the companies that are using your product. If you are in Beta or Proof of Concept, you may not have month on month growth to show, in that case, mention your stage and the number of users who have tried your product here.
In How do we make money?: Describe what your revenue model is.
On your Pitch Deck: Pitch deck is your first impression and the objective is to get investors interested in you and your startup. You need to communicate and present relevant information clearly and concisely.
There are 7 essential elements that make a good pitch deck:
- Problem statement: What is it that you are trying to solve?
- Solution: What is the solution? What is the product?
- Market: How big is the market? Market size? What are the numbers?
- Competition Analysis: Competition. Differentiation.
- Revenue model: Not projections. How you make money. Potential revenue model.
- Team: Founders & Advisors. Write a short one to two sentence bio of each co-founder and include photos.
- Funding ask: In your funding ask slide, mention your funding ask in INR and show how you are going to use the funds. For example: 30% for Product Development, 20% for Marketing, 30% for talent etc. One thing to note is that no one segment should take more than 30% utilization of the funding ask.
Taking time in creating a strong LetsVenture profile is time well spent. Clearly communicating is important but it becomes even more so on an online platform. If you have any questions, write to us at firstname.lastname@example.org.
Is the platform only for fundraise?
No, you may apply to various accelerators that are taking assistance of LetsVenture. You may also post jobs on the job section..
Which all data I need to have to create a Startup profile?
If you are not fundraising, you just need Basic profile data (Startup Video, Team, Jobs, Product, Media and Timeline tabs). If you are fundraising, you need to fill the Detailed profile data (Investor Deck, Founder video, Traction, Competition and Round Information tabs).
How can I keep my Startup data confidential or private?
At LetsVenture, we are very serious about security and privacy of your Startup profile data. As a founder, you have complete control of who has access to which parts of your profile on LetsVenture. In your startup profile, please choose ‘Stealth/Private’ mode under the privacy section.
I am a Stealth mode Startup. How do I raise funds on LetsVenture without showing my profile to any investor?
Yes, Stealth mode Startups profiles are supported on the Platform. You can get in touch with our Startup team and they will be able to evaluate your needs and help you accordingly.
How can I delete my Startup profile from LetsVenture?
Right now, we haven’t provided the option to delete the startup profile but you can unpublish your Startup profile through the "Account Settings" menu option and going to "Startup profile" tab of the settings page. Otherwise send us a request at email@example.com and we will unpublish your profile. Note that unpublishing means that your profile is not visible to anyone except you.
I have multiple Startups. How can I create additional profiles on LV?
Yes, we do allow creating multiple Startup profile with a single login. Currently, you need to get in touch with firstname.lastname@example.org if you need this feature.
Does LetsVenture provide a Q/A forum? I have many questions that other Startups/Investors could answer for me.
Not quite but there’s a feature called ‘Investor Room’ where you can answer the questions asked by different investors who are evaluating your startup for an investment
How do I apply for fundraise on the platform?
After signing up on the platform, make sure your startup profile is completely filled up. Once, you are ready for fundraise, you can apply for Investor Connect while editing your startup profile. Our startup team will review and approve your request to connect with Investors on the Platform.
What is Investor Connect?
Investor Connect is where your fundraising journey begins! It is a curated set of actively fundraising startups on the platform for which the founder has to apply post completion of the profile. A startup in Investor Connect is able to view, proactively request investors to connect and chat with them on the LetsVenture platform. At the same time, the platform does an outreach to the most relevant set of investors using the built in recommendation engine algorithms. Investor Connect is the key to startups’ visibility on the platform and hence improves their chances of discovery. The Founder also has to agree with our MOU (commercial terms) while applying to Investor Connect.
What is the criteria for accepting my Startup for Investor Connect?
We approve startups for Investor Connects based on the Startup Funding Readiness Index
. It uses the following parameters:
- Is the LV profile complete? There is no way for us to access your readiness, if data is incomplete.
- Assuming the LV profile is complete, we do review the following:
- Team Profile (is the team well rounded? Does the experience reflect alignment to the product? Does the team demonstrate the ability to execute? Who are the advisors? Who are the previous investors., if the startup has already raised an earlier round?)
- Traction ((Do traction metrics reflect numbers that are relevant to the stage of the startup?)
- Do the financial numbers align to the stage of the startup? Is the “ Funding Ask” correct? If the valuation expectation justified?
- Is the investor deck complete?
- Startup Video and Founder Video does help provide additional clarity to what is being presented, but is not mandatory for you to be approved.
Based on this, we will approve your profile. However as entrepreneurs ourselves, we believe that there will be outliers and founders who will break conventional thinking. We cannot represent the investment thesis of 1500+ investors on the platform, and hence don’t believe in rules (like Ideation startups cannot raise funding, valuations have to follow fixed rules). If in doubt, we pass the benefit to the entrepreneur!
What is a featured syndicate and how I can be featured?
Featured Syndicate on LetsVenture gives you enhanced visibility (separate Featured section for Investors) with an optional package called Commitment to closure (Due Diligence, TermSheet, SHA) .
The most time consuming part of the fundraise is to find a lead and / or raise the initial 30-40%, post which it is about building the momentum to close the round. At this stage is where a featured syndicate comes into picture.
There are two ways the round can be built.
- The lead can syndicate the round and provide his investment thesis to all the investors.
- LV recommended deals where LV takes the call in featuring a company
The team will work with the startup on coming up with the right strategy to help close the round.
How do I connect with Investors? Are there any restrictions?
Our Startup team will help you find a Lead Investor if you don’t have one. The Lead Investors may charge advisory equity depending on how much value they can bring to the company
Which investors do I connect with on LetsVenture?
You can search for Investors based on the sector, location etc. Also, go through their current investment portfolio and investment thesis to find the right set of investors you want to connect with for your fundraise.
Does LetsVenture allow me to select which Investor I take money from? Can I reject an investor's commitment on LetsVenture?
Yes, we provide flexibility to the Entrepreneur but it is better to have this discussed with the LetsVenture Startup team before rejecting any Investor commitment.
What is the role of a Lead Investor?
A Lead investor is someone who is willing to step in and don the mantle of the captain of the investor syndicate. The Lead investor should ideally have engaged with the startup for sometime to understand the business, and see how he can support the entrepreneur. Read in detail about the responsibilities here
How do I find a Lead Investor? How much incentive do I need to offer to the Lead Investor?
Our Startup team will help you find a Lead Investor if you have a Featured Syndicate on the platform. Read here
about the Lead Incentive amount.
Can a startup publicly announce that it is seeking potential investments?
As per the applicable law, a private company registered in India cannot extend an invitation to the public to subscribe for shares in the company.
How does the fund transfer take place?
After the successful online commitment by the investors, the LV Angel Fund receives the amount from all the investors and then transfers it to the Startup bank account. Once, the money gets deposited in the startup bank account, only then the deal is considered to go for any press release.
After the initial round of funding, can a Startup approach LetsVenture for the next round of funding?
Yes. We have created a platform called LetsGrow to specifically help our portfolio Startups to raise SeriesA money from Family Offices and VCs. Note that we have 120+ family offices registered on our LV Titans platform. We also work with Startups for raising the pre-seriesA money from Angel investors.
What does LetsVenture offer to a Startup after the funds are raised?
LetsVenture helps Startups share a quarterly Investor report with key business metrics and financial metrics. We also organise a quarterly video conference call with the investors. We also track key governance and compliance so that the Startup is on the right path. See the above question for help wrt next round of fundraise.
What happens in the event the Startup fails to raise the full investment amount sought?
In case the Startup is not able to raise the full investment amount, LetsVenture does provide the flexibility to close the funding round with even the partial investment raised on the platform.
What stage is your Startup currently in?
You can choose from the following stages while creating your Startup profile on LetsVenture. Note that most of it will also apply to services startups. -
- Ideation - you have the problem, solution, business model etc well defined but you haven't built any POC nor have you launched the product in the market.
- Proof of Concept - you have a POC version of product ready and able to give a demo but product is yet to launch in the market.
- Beta launched - product has been launched in the market to a small set of beta customers. Product may undergo few iterations before it is taken out of beta and 1.0 is released.
- Early Revenues - product is launched and it has started generating revenues from few customers but revenue may be sporadic in nature.
- Steady Revenues - there is steady customer base which is generating steady revenues for the company month on month or year on year.
What type of business are you in (B2B, B2C, B2B2C, B2G)?
Here is a detailed explanation of the types of businesses -
- B2B - you are a B2B Startup if your customers are typically other businesses or companies, NOT individuals. For example, Freshworks, Capillary are B2B companies.
- B2C - on the other hand, if your customers are typically individuals, then you are a B2C Startup. For example, PolicyBazaar, Byju's, UrbanClap, Dailyhunt are B2C companies.
- B2B2C - in this case, the Startup first sells the product/service to businesses who in-turn sells to individuals as customers. See https://a16z.com/2018/05/17/b2b2c-business-models-rampell/ to understand the difference between B2B and B2B2C businesses.
- B2G - a variation of B2B where the Startups is selling the product or service to government instead.
How to invite a Team member or Investor to LetsVenture platform?
When you add a team member to your LetsVenture Startup profile, his/her details will be instantly added and shown into your Startup profile. However, if you want the team member (e.g. co-Founder) to be able to edit your Startup profile as well, he/she needs to create his login/password on LetsVenture. To be able to do this just check the checkbox for "invite team member to LetsVenture" and also "give Admin privilege" checkbox. He/She will receive an account creation link from LetsVenture, once he fills all his/her details we ask, he will have his independent login/password and will be able to edit your Startup profile as well.
Note that the above process also applies when you add investors in your round information tab and check the "invite to LetsVenture" checkbox. The Investor will receive a signup link from LetsVenture and after filling up the information, an investor onboarding person from LetsVenture will talk to him/her and get his onboarded to LetsVenture.
What are the Traction Metrics on LetsVenture?
You can choose any of the following Traction Metrics while updating Traction data in your Startup Profile on LetsVenture. Note that if you have a custom metric that doesn't match any of the below ones, you can use that too.
The Metrics are categorised into various buckets for simplicity of understanding -
- CAC - Customer Acquisition Cost (CAC) is simply the average money you spend in obtaining a customer.
- LTV - The amount of sales amount that a customer will spend with your company over their lifetime.
- MRR - It is the recurring revenue, normalized, over a period of a month.
- ARR - It is the recurring revenue, normalized, over a period of a year.
- ARPU - Average Revenue per User/Unit is calculated by dividing the Total MRR by the total number of customers or accounts.
- Churn rate - the churn rate is the rate at which your customers are canceling their subscriptions.
See following links from Chargebee website for details on the SaaS metrics.
- Pageviews - the total number of pages people visited on your website per month
- Users - number of users who have initiated at least one session on your website
- Website Traffic - it could be a measure of the pageviews or Unique Users or a mix of both
- New Users - number of first time users
- Sessions - session is counted as the time period during which user is actively engaged with your website.
- Number of Sessions per User -
- Pages/Session - average number of pages viewed per session
- Avg Session Duration - the average length of visitors’ sessions
- Bounce Rate - the percent of visits that are single-page only (i.e. people who visit one page and leave).
- No of downloads/install - from the android play store and Apple app store.
- 7 day retention - how many of your users come back to your app on 7th day
- 30 day retention - similar as above
- DAU - Daily Active Users - the key lies in how you define "active" user. Is "user signed" in enough to define a user as "active"? Perhaps its better to to measure a more valuable action like "Update a Task", "Invite Collaborator", "Share Content". See https://sixteenventures.com/active-users-vanity-metric
- MAU - Monthly Active Users
- NPS - Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research and is claimed to be correlated with revenue growth. An NPS can be as low as −100 (every respondent is a "detractor") or as high as +100 (every respondent is a "promoter").
- DAU/MAU - it reflects Stickiness of your app. For example, a DAU/MAU ratio of 50% would mean that the average user of your app is using it 15 out of 30 days that month. See https://mixpanel.com/blog/2014/03/06/addiction/ and https://techcrunch.com/2009/10/29/how-to-measure-the-true-stickiness-and-success-of-a-facebook-app/
What are the different instruments available for Startups fundraise?
- CCPS - Compulsorily Convertible Preference Shares. This is the most common instrument used by Startups in India. These are basically preference shares (also called preferred stock in US) that gives the investors some preference over Equity Shares. Typically preference shares have a higher liquidation preference meaning the preferred stockholders get their money back first in the event that the company must be liquidated. CCPS may also carry a fixed dividend but could be kept very low say 0.0001% per annum. The CCPS must compulsorily convert into equity shares within 20 years after issuance.
- Equity - Also called as common shares/stock. These are less preferred by investors compared to CCPS as CCPS holders have higher liquidation preference over Equity holders in case of a liquidity event.
- CCD - Compulsorily Convertible Debentures - This is a debt instrument that has to compulsorily convert into shares. This is mostly used to defer valuation discussions, and can be tied to future financing. The key terms of the investment include a Valuation cap - beyond which the investors shares cannot be valued at the time of conversion, Discount - which is a % discount to the next round valuation, Interest rate of the CCD - which can be a bare minimum number.
- Convertible note - This has been allowed recently in India but allowed only for DPIIT certified Startups. A convertible note is an optionally convertible instrument giving investors the option (on maturity i.e. when the startup raises next round of funding) to convert their investment into equity at a predetermined discount to the next round of funding. If the Startup’s valuation does not increase as per the expectation of the investor, he/she can choose not to convert and instead redeem the notes at an interest rate subject to the terms & conditions contained therein. This reduces the risk for the investor, while at the same time allows the possibility of conversion into equity if the startup performs well. See https://companiesinn.com/articles/convertible-note
- SAFE - for US registered Startups - this is a very common instrument for early stage startups registered in USA. See https://www.ycombinator.com/documents This carries a small agreement between Investor and Startup where the valuation is decided in the later round (e.g. an institutional round).