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Equity Funding for Startups and MSMEs: A Primer

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-           Alastair Pavrey Many entrepreneurs find themselves in a dilemma when it comes to raising funds and deciding between equity and debt. There are lot of common concerns regarding equity with respect to losing control and giving up equity stake which leads them towards debt funding, ignoring the risks inherent with that strategy. Although sometimes viable and effective, taking on debt at the wrong time can be a death wish to most startups and put them on a path to failure. Most importantly, many MSMEs are not very enthusiastic and aware of the various other financing options available. Private equity funding from a credible investor has many positives for MSMEs such as increasing the Net worth and strengthening the books, guidance to better endure the volatile business environment, flexibility in structuring return of investment, access to high-level intellectual capital, etc. Further, raising private equity is easier as com...

Success Story - Startup Loan for Urban Nashta

M/s. FoodZeplin Pvt Ltd had approached MSMEmitra.com when they were looking to raise seed funds for their venture – www.urbannashta.com UrbanNashta.com is the Ultimate Breakfast Solution designed specifically for time crunched Gen Next, providing them with innovative recipes , delivered in time through a dynamic ordering platform . Urban Nashta prepares and delivers healthier , wholesome breakfasts through a daily rotating menu as tasty and innovative variations to common household recipes in order to maintain customer-product connect, and be perceived as the perfect solution to all breakfast related problems. The service includes In-Time Delivery , Subscription Packs , Option to Pre-Order , and Picking Personal Delivery Slots to ensure the brand breathes of convenience. The company had held talks to raise seed funds with PE Investors, but the talks came to a standstill because the parties involved could not come to an agreement on the share of profits / dilution of shares ...

Startup valuations for Private Equity Investment

Business Valuation is a process and a set of procedures used to determine what a business is worth. Business value can be different for business owners and investors. Business valuation is the expected selling price of the Business, the actual value varying, depending on how the valuation is determined. There are 3 ways to determine the value of the Business: ·          Asset Approach ·          Market Approach ·          Income Approach Asset Approach: In this approach, Business valuation is done on the basis of Assets and Liabilities, based on the economic principle of substitution. The challenge in this approach is to decide which Assets and Liabilities to include in the valuation, choosing a standard of measuring the value and then determining the actual values. In determining the value using this method, a monetary value is given to the special p...