![SECRETS of STARTUP FUNDING | Equity Dilution | By CA Rajat Agrawal 1 SECRETS of STARTUP FUNDING | Equity Dilution | By CA Rajat Agrawal](https://prokhata.com/wp-content/uploads/2022/02/Secrets-of-Startup-funding-by-ca-rajat-agrawal.png)
Important Terms to understand before Starting-up
00:26 What are the Prerequisites for Startup Company ?
01:29 Pre-Money Valuation 03:30 Startup Funding Rounds
04:30 Equity Dilution and Post Money Valuation
08:30 Convertible Debt
09:30 Preferential Liquidation
Who will fund you?
Startups don’t get money from bankers (lending), So, only option is from shareholders (equity).
Banks won’t lend money to finance projects with no short term revenue generation .
So let’s focus on shareholders (Equity = long-term financing needs in uncertain corporate investment).
When do Investors earn money?
The objective of a startup is to grow the business and its value as fast as possible to realize the greatest ROI possible on exit .
So all the profits get reinvested rather than paying dividend .
Shareholders get paid ONLY when they sell the company.
“Avoid investors till you decide to raise money, and then when you do, talk to them all in parallel, prioritized by expected value, and accept offers greedily. That’s fundraising in one sentence. Don’t introduce complicated optimizations, and don’t let investors introduce complications either. Fundraising is not what will make you successful. It’s just a means to an end. Your primary goal should be to get it over with and get back to what will make you successful—making things and talking to users—and the path I’ve described will for most startups be the surest way to that destination. Be good, take care of yourselves, and don’t leave the path.“
#startup #startupindia
Recent Posts
+ISA Eligibility Test - ET under ISA 3.0 Syllabus on 14th Sep 2024 - 10:00 AM
August 30,2024 / DISA Exam Announcement / 0 CommentsICAI Notification for Online Eligibility Test (ET) on 14th September 2024 The Digital Accounting &...
Guidelines for Posting Particulars on Website by Chartered Accountants and Firms of Chartered Accountants
May 30,2024 / Empanelment of Auditors / 2 CommentsThe Institute of Chartered Accountants of India (ICAI) has issued guidelines for Chartered...
Important Announcement: Information Systems Audit – Assessment Test (ISA – AT) in July 2024
May 30,2024 / DISA Exam Announcement / 0 CommentsUpcoming Assessment Test for ISA Course Members We are pleased to announce that the next...
ISA Eligibility Test - ET under ISA 3.0 Syllabus on 11th May 2024 - 10:00 AM
April 13,2024 / DISA Exam Announcement / 0 CommentsNotification for Online Eligibility Test (ET) for Post Qualification Course on Information...
[Result] Information System Audit – Assessment Test (ISA – AT), 7th February 2024
February 07,2024 / DISA Exam Announcement / 0 CommentsIMPORTANT ANNOUNCEMENT Subject: Information System Audit – Assessment Test (ISA – AT)...
Effortless Access to ISA 3.0 Video Lectures and Question Banks on Your Mobile: A Step-by-Step Guide
December 15,2023 / DISA Blog / 1 CommentsHello, valued members! Today, let's delve into the effortless process of accessing ISA 3.0 classes...
Related
- ankur warikoo
- business idea
- CA RAJAT AGRAWAL
- convertible debt
- equity dilution
- funding
- idea
- pre money and post money valuation
- preferential liquidation
- secrets
- shark tank
- shark tank india full episode
- sharktank
- sharktank india
- starting up
- startup
- startup 1st episode
- startup 2022
- startup business
- startup business ideas
- startup funding
- startup hindi explanation
- startup india
- startup india scheme
- startup pitch
- startup show
- startupgyaan
- startups in india