Congratulations! You could be just like HeyLets and many other startups that have attracted funding the same way as bees are attracted to honey.
But do you know to get startup seed funding?
Are you looking at the right places and using the best resources?
Learn from the HeyLets Story (Recently published on TechCrunch)
HeyLets is a location discovery application. But you may wonder so what. What makes this app different from the rest is the ability to personalize recommendations. Users can choose from 30 different categories based on their interests and information put in their profile. Besides the usual fine dining category, HeyLets has some unique interests, like new age and psychedelics and card and board games.
Because of its uniqueness, HeyLets was recently able to attract investors – five angel investors and BlueSky Funds. These investors together gave $1.65 million in startup seed funding.
The CEO and co-founder of HeyLets, Justin Parfitt, will tell you how frustrating and time-consuming it was for the startup to attract seed funding. The app has a lot of competition in the market in the form of Yelp, Everplaces and Foursquare’s Swarm, but it has managed to hold its own. It has 100,000 recommendations by users for 91 different countries and it is these personalized reviews that makes HeyLets stand out. If a location doesn’t get adequate positive reviews and recommendations, it is not included in the feeds.
HeyLets intends using its seed funding to hire new employees and focus on product development. There also are plans in the pipeline to allow users to pay for restaurants, hotels and ticket purchases through the app.
Why are Investors Attracted to Asana?
Asana has famous founders, Dustin Moscovitz and Justin Rosenstein. The former was one of the co-founders of Facebook, while the latter was the social networking site’s engineering lead. Together they founded Asana, a startup that is focusing on creating a project management software.
While the startup has not launched its product, it has managed to garner interest among investors primarily because of its founders, who boast of a successful past history. There are many times when startups can get seed funding based on their founders and their experience. This happens even before a product is launched. (Read more at Mashable)
In 2009, this startup raised a whopping $10.2 million in just two rounds of funding. Here, investors hope the two well-known co-founders can replicate the success of Facebook with their new venture.
Tips for Attracting Startup Seed Funding
Every startup founder cannot have the right pedigree to attract investors. Hence, if you’re seeking startup seed funding, you will have to do the right things to attract investors. While you may have the perfect concept, but that by itself is insufficient to get the funding. Here’s what you should do.
The Why: Investors want to know what your product or service is and how it will benefit users. They are just not interested in your dreams or aspirations. Hence, determine how your startup offers a solution to people. Forget for the time being what you are doing. If your startup sounds interesting, the investor himself will ask you that question and you should be prepared to lay down the hard facts without glossing over them.
The Right Team: Investors want to be sure their money gets them the returns they are seeking. So, without the right team in place that can bring fruition to your idea, no investor would be willing to risk their money. Having a strong and qualified team gives investors the assurance your idea will be a success.
The Demo: Before you look for startup seed funding, always work to build a prototype of the product or service. This will allow the investor to see what your startup is all about and convince them that you are not playing in the dark and are a serious entrepreneur.
How India’s Paytm Gets Funding of Another $400M for Its New Payment Bank?
Just months after a reported $680 million round, Alibaba-backed Paytm is raising money again of $400 million by June for its new payments business, Paytm Payment Bank. Earlier, Paytm talks with Flipkart over how these two could work together for competing better against two giants, Amazon and Snapdeal.
Previously, one alternative also raised for Flipkart and Paytm to merge. “Early talks have been about creating a structure where the marketplaces of Paytm and Flipkart could be combined,” news from TechCrunch earlier this month.
Since 2014, Flipkart, Snapdeal and Paytm have collectively raised over $4 billion for customer discounts and fuel their expansion. That was the same year that Jeff Bezos, Amazon CEO promised to invest $2 billion in the company’s India operations.
Earlier this month in Hangzhou, China, the decision for Paytm is to raise more money where Paytm founder Vijay Shekhar Sharma attended the company’s board meeting. The new payment business will be 51% owned by the founder himself and remaining 49% by the company.The fresh funding will be used for setting up and expanding the new bank, which is being created as the new way of growing
The fresh funding will be used for setting up and expanding the new bank, which is being created as the new way of growing Paytm’s presence across the bigger e-commerce market. “Earlier, we were planning to raise the funding for our payments business separately [but] now we have decided to raise more funding at a consolidated level,” said Sharma in an interview with TechCrunch. This could help Paytm entice a stronger valuation.
So far, Paytm has disclosed about $700 million in funding from investors, including Alibaba. During its last funding round in August last year, Paytm was valued at around $2.8 billion when it raised $680 million from Alibaba affiliate Ant Financial. Paytm also got a payment bank license from India’s banking regulator and thus, it is expected to have 500 million users by 2020.
By expanding as the mobile bank, it would help Paytm to expand those payment services to more third-party applications and platforms, especially those, who don’t have their own banking licenses, like Flipkart. Ultimately, it enables users to save money.
[Updated on 16-Feb-16] After Paytm, Snapdeal Gets $200M to Compete with Ongoing E-Commerce Battle of India
It’s time for Snapdeal to pull $200 million in new funding through an investment led by Ontario Teachers’ Pension Plan, the Canadian investment vehicle with more than $150 billion in assets.
We cannot find any valuation to this new raise, however, Snapdeal’s total funding to around $1.8 billion. Looking at other competitors, Amazon has raised $2 billion for its Indian operations back in 2014 and Flipkart pledged $3.2 billion in funding from investors like Naspers, Tiger Global and DST Global.
Snapdeal CFO Anup Vikal said in a statement,
“We see these investments as a continuing endorsement of Snapdeal’s strategy to build India’s most reliable and frictionless commerce ecosystem. We continue to make targeted investments in building internal and external capabilities that will enable us to consistently deliver optimal experience for the millions of buyers and sellers who transact daily on Snapdeal.”
Snapdeal claims to have more than 30 million products from some 275,000 sellers – which is an amazing collection for any six-year old eCommerce company whereas, Flipkart claims 30 million product figure a 45 million registered users.
The two giants, Snapdeal and Flipkart have long been angled to go public, however, they look like being beaten to the post by Shopclues, a lesser rival that valued at more than $1 billion following a Series E round in the region of $150-$200 million.
Getting Seed Funding for App Development
If you have a brilliant idea for developing an app which you think can be immensely useful for millions of mobile phone users or which can be a next big craze in the app world then we can be the right partner for you.
This leading mobile app development company based out of Gujarat in India has won many accolades and awards for its brilliance in iPhone App Development. The company has successfully executed more than 500 iPhone App Development projects and is eager to take up lot more. If you have a convincing idea, we can seed fund your idea and also give you the needed tech support right from app development to execution stage.
Getting startup seed funding can be tough and an arduous journey. But if you think you have a brilliant idea, don’t let lack of funding pose an obstacle. There are other ways to get seed money, such as getting loans from bank, friends or family, crowdfunding and/or using your credit card as the last resort. However, if you have the holy trinity mentioned here and you have a great idea or concept, after giving your pitch to the investor, getting seed funding shouldn’t be a problem.