Many entrepreneurs in India’s startup ecosystem struggle to secure early-stage funding. With growing competition and changing investor demands, founders face tough decisions about market entry, team building, and valuations. In this Q&A, Raghav Kanoria, a leader in East India’s startup scene, shares his insights. As the co-founder of Calcutta Angels Network and founder of Neoleap Ventures, he offers valuable advice to help founders meet investor expectations and secure the capital they need.
Navigating the Startup Funding Maze
Q: What key factors do you look for when evaluating potential seed-stage investments?
A: Management team should have relevant work experience. If starting fresh, should have studied the relevant course. Team should have complimentary skill sets.
The market should be a large enough market to operate in. Not much competition otherwise tough to enter the market and survive.
Q: How do you assess a startup’s market potential and competitive advantage?
A: See the total addressable market and the market addressable in the home market. One needs to see the customer profile and the number of paying customers based on income levels. The competitive advantage would be a factor of pricing, technology, first mover advantage.
Q: Can you walk us through your due diligence process for seed-stage investments?
A: At the start up/seed level the main focus is on competitive advantage, team as their are not enough numbers. Due diligence is mostly done on the team backgrounds, market potential.
Q: What role do the founders and their team play in your investment decision-making process?
A: The most important at start up stage.
Q: How do you determine the right valuation and investment terms for a seed-stage startup?
A: It is mostly based on give and take. Negotiation between the founders and the investors.
Q: Can you share a success story of a seed-stage startup you invested in that exceeded expectations?
A: Ikure techsoft. Invested at 3 crore valuation and previous valuation was 50 crore inr.
Q:How do you support and add value to your portfolio companies beyond providing capital?
A: Market access, hiring, corporate governance.
Key Takeaways for Startup Founders
Raghav Kanoria’s experience highlights that success in seed-stage investment requires more than just a great product. Founders need a strong strategy, a capable team, and a clear market advantage. For those seeking funding, understanding what investors value can unlock both capital and long-term support. With Raghav’s insights, entrepreneurs can build better relationships with investors and position their startups for growth. By applying these lessons, founders can overcome common challenges and take their businesses to the next level.
