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.