How is the investment raised? Venture Capitalist What do you do if you have a business idea? What do investors see venture Capitalist?

How is the investment raised? What do you do if you have a business idea? What do investors see?
How is the investment raised? What do you do if you have a business idea? What do investors see?

"We went to an online conference," says Mina Salman. There were a lot of investors. We met some venture capitalists there and we presented them with our idea. And then the series went on for a long time. There were a few meetings and then there was the process called Dave Diligence. Investors in Dave Deluge review your account. Let's see how your business is going to grow and expand. "

"We were a bit lucky," she says. We only talked to two investors. One rejected us but the other liked our idea. But everyone has a different experience. "

venture capitalists Contrary to Mina's experience, Misbah Naqvi says raising capital is not an easy task.

"Young people who want to start a new business should test their ideas in the market before spending too much money. Determine if the product you are trying to market is in demand. Whether they will buy your product or service. This is called market validation. Once you have the market validation then you can go and ask people to invest in us.

Misbah Naqvi says investors look at the team before investing in companies. "It is often very difficult to get work done in Pakistan. So investors see if there is a 'jogger' in the company maker.

Faisal Aftab, an investor, also says that the first thing he sees is who is in the team that came up with the business idea.

"The first thing we see is how much technology these people have," he said. Most of the time, we invest in people who have worked for a technology company before. For example, if someone in Pakistan has worked moderately in cream and has made progress in a single field, or in food panda or in the drawer, there is a common denominator that these people have to build companies and "Speed ​​is very important to me."

"Besides, when the company has matured a bit, it has become a team, some sales have been made, there we pay more attention (when it is profitable) but still the team is the most important. The money we are investing, we are investing in this team. As we move on to the next level, we then consider the possibility of profit and expansion (such as total market size).

But if you have it all, how do you do it for investors?

In this regard, Misbah says, "First of all, there are a lot of conferences where the organizers ask us to present our ideas to the investors." In addition, there are several accelerator programs, and the government has set up national incubation centers.

Misbah says organizations like Accelerators or Incubator Centers are called Entrepreneurship Support Organizations. "If you become part of an organization's program, not only do they help you grow your business, but they also hold events on a number of specific days where they bring you in front of investors. Have your say. In addition, universities are now helping. "

What are Pre Seed Round, Seed Round, Series A Round, Series B Round?

Faisal Aftab explains that ‘Pre Seed Round, Seed Round, Series A Round, Series B Round ... These are just some of the goal setting shareware that you can use. Preseed you say that when three or four people get together, they have an idea, they put it in a presentation, often there is no company at that time, we record their past at this stage. Give them the first check on the basis. It usually costs around one to one and a half million dollars.

The seed stage is when the company is registered, the technology product is ready, a few customers have started coming, that is, you have seen that your idea has become something, then at this point. Seed rounds are done which accelerates their speed. In Pakistan, an average of two to three million dollars is usually given at this stage. The goal is to grow the company. "

"When you grow a company, you end up in a series A round where you get ten to fifteen million dollars. At this point your product starts to be recognized in the market, a network effect starts, like once WhatsApp started spreading in Pakistan, then you need more money which is Series A. Come from the round.

"There we see how fast consumers are growing, how many customers are coming for the second time, how much is the revenue, if there is no revenue then what is the possible way of revenue in the future, and so on and so forth."

venture capitalists Contrary to Mina's experience

venture capitalists Contrary to Mina's experience