Starting a venture of your own sounds like an exciting thing. But you cannot do that without having a solid place where you can get startup funding. For this, you have to rely on investors. In this article, we are going to talk about how one can find investors in Nepal.
Mind you, you cannot remain lazy and wait for investors to approach you from the little that you do. Instead, you should be mindful of every little thing you do. Most of all, you must be able to gain the trust of investors in order to get a good amount of investment.
Searching and Partnering Up with Angel Investors
You have to make sure that you have found the best angel investors for your business. Moreover, you can find these investors when you do your research properly. Angel investors are highly successful businessmen who are above the age of 50 that are willing to invest in small or beginner ventures.
Searching for trustworthy angel investors is always more profitable than seed funding because they are likely to invest more in your business. Likewise, business segregation also becomes much easier with the help of investments from angel investors.
Venture Capital Player
Many venture capital firms are increasing and growing in Nepal. In the stage of venture capital fundraising, a startup can either be facing a lot of profits and no loss at all or going through a negative cash flow. If you are a startup and your startup is facing positive growth, there is a very high chance that investors will show interest in your business. Moreover, you need to be familiar with equity and convertible notes if you want to make dealings with a venture capital firm.
You must keep in mind that venture capital firms try their best to remain as a sole firm or a monopolistic firm. However, competitors don’t faze them. Out of everything, venture capital firms focus on making a profit. Besides making profits, there aren’t a lot of things that these firms emphasize.
Getting a bank loan can either be a boon or a curse as funding for a Nepali startup. Moreover, you can also get a chance to explore the loan that you get from commercial banks in Nepal. There are many banks in Nepal that have been providing loans for people willing to make an investment in the initial phase of their business.
Besides this, you need to make sure that you are aware of the terms and policies that you need to abide by when you are taking loans from a bank. Likewise, many financial institutions in Nepal and even some venture firms are lending bridging loans to many startups. This is possibly one of the most preferable ways of taking a loan and getting an investment for a young startup firm in the context of Nepal.
Initial Public Offering (IPO)
Going public is not the first thing that comes to mind when you think of getting an investor for your startup. However, you should make sure that you are also getting a lot of talented recruits in your company when you offer public shares of the company. Besides this, you can also get a lot of investors who are willing to invest in your business. Though it may not be the primary choice for many startup owners, you can still use this option in a fruitful manner.
Moreover, your company won’t remain a startup but will turn into a public firm when you offer IPO to the general public.
This is another choice that many startup owners in Nepal have opted for over the years. You have to develop a sense of trust, understanding of seed capital, and respect in order to get startup funding through seed capital.
Seed funding does not come from a high-profile institution but from your friends, family, and credit cards. You should make sure that you convince them enough before you get investment from their side. All your intentions should be put forward to them like an open book in case any unfortunate or even fortunate events take place in the future. Besides this, you have to keep a check on every action with the help of a written document, progress reports, and deliverables. Either way, you have to play safe when you are playing with someone else’s money in your startup.
Besides all the things that we have mentioned in this article, you have to make sure to keep in mind all the things that are going to work for you. Also, it is important that a beginner startup owner must know everything about Nepalese funding policies. And, everything that he does must be kept in check. There should not be any act of randomness when a startup owner is using funding from an investor. Hence, a very serious mindset can definitely help if you are a startup owner looking for an investor and willing to get in no trouble.