Are you interested in investing in a business venture with high potential rewards?
Seed Capital Funds are the venture capitalists who provide financial assistance to startup companies that are in the embryonic or conceptual stage. At this stage, the business has just begun and the amount of money required is relatively less since the business idea is yet to be completely formed. The company is looking forward to cover initial operating expenses and engage in activities such as market research, product development, testing, designing equipments and prototype production. It needs to convert the idea into a commercial product or service.
Although the amount of capital needed is comparatively less than the stages that follow, seed-stage companies often find it difficult to acquire such capital primarily due to the uncertainty and wide range of factors involved. They are typically funded either by owner's personal assets, family and friends or by seed stage focused funds. Investors in this stage also include entrepreneurship development cells and funds separately setup by the government for this purpose. These investments are considered to be high-risk investments; however, high risk also indicates potential for high rewards.
At such a fundamental stage, adequate guidance and mentoring is as essential as financial support. This is where the venture capitalists step in. Once they are convinced about the feasibility of the business idea and the rewards it shall offer; and they are ready to provide such assistance, the business idea can be converted into a successful business venture.
Challenges
- The biggest challenge is to identify the million dollar idea. The viability of the idea and the business is completely unknown, and so is the market acceptability of its products or services
- There is no credit history or past performance records available for such start-up companies
- It may take up years of meaningful commitment and devotion before the business can generate revenue that leads the enterprise to breakeven
Solution
- Close interaction with budding entrepreneurs, and vast database of seed-stage companies that promise feasibility and growth
- Conducting a detailed analysis of the business models to assess whether the business proposition are both financially as well as technically viable.
- We are also able to estimate the returns that the enterprises are expected to generate and the time they shall take to achieve set targets
Benefits
- Helps shortlist and identify startups with promising and viable business ideas
- Our team of expert market researchers helps ascertain whether there is sufficient market for the proposed products or services
- Provide all necessary services and ensure that financing activities are conducted in the most efficient manner
Sign up as a Seed Capital Fund and learn more about projects that are best suited for your investment profile.