Startup funding can be obtained from venture capital in multiple ways, spanning applying for a business plan, attending startup exhibitions, and conducting due diligence.
Heaptalk, Jakarta — One essential component in building a startup business is capital. As good as a product or service may be, startup founders know they need financial support to scale their ideas. There are many sources of capital that startups can access, one of which is through the acquisition of venture capital.
Venture capital (VC) is funding provided by investors to small companies, including startups which are estimated to have great potential in the long term. Koinworks explained that VCs obtain funds from various groups, including wealthy investors, financial institutions, and investment banks.
Capital assistance provided is not always in the form of funds, but can also be in the form of technical expertise or certain skills. In Indonesia, several prominent venture capitalists offer financial support, spanning Alpha JWC Ventures, East Ventures, 500 SEA, and Gree Ventures.
Investments disbursed to startups certainly have a high risk. Therefore, not all startups go through a fast and smooth process in obtaining funding. Alpha JWC Ventures shares 5 ways how to obtain investment from venture capital.
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Applying for a business plan
The first step to obtaining a venture capital investment is by submitting a business plan. A mature and appropriate business plan will help startups to pursue desired capital. With detailed information, ranging from running the business to how much profit the investor will get, investors will likely be more interested and believe in the potential for success.
A business plan can be made in the form of a proposal or presentation which depends on the needs and capabilities of each entrepreneur in introducing the business to investors.
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Attending startup exhibitions
In business fairs, investors usually look for potential businesses to invest. Therefore, this event is most appropriate to bring together the desired investors and entrepreneurs.
This type of event commonly has face-to-face sessions between entrepreneurs and investors. This is a good moment to introduce the business and catch the attention of potential investors.
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Carrying out due diligence
In general, due diligence refers to a detailed examination of a company and its financial records, done before becoming involved in a business arrangement with it, according to the Cambridge dictionary.
At this meeting, startup founders can introduce their business ideas and present the type of business planned. Founders should prepare answers to as many questions as possible since investors surely want to know in detail about the business being presented. By getting the right answers, investors are expected to increase their confidence in providing capital assistance to startups.
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Signing of a cooperation agreement
Cooperation agreements are made when investors agree to provide funding for startups with the aim of not harming either party later. The entire content of the agreement must include the needs of each party in detail. The signing of the cooperation agreement by both parties is valid and has legal ties.
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Applying online through VC’s website
Several VCs in Indonesia offer online submissions for investments. Founders should check the official website of each venture capital to learn more about the steps and requirements.
