There are three “F” options or rules every startup entrepreneur must follow in fundraising from the inception of his startup to ensure that he is not too dependent on venture capital funds.  The “F” rules are – Founders, Family and Friends. It is of course the fact that these three types of raising funds gives very little credit for the business but this clearly makes the startup strong and in the eyes of thirsty investors it awakens a sense of urge to invest. Bootstrapping also shows the confidence level of an entrepreneur who wishes to take forward his startup baby single handedly.

Startups, Now an Inevitable Factor in India's growth

While funds from families and friends come as a boon, the thought of even looking at venture capital funds is pointless and leads nowhere. The smart decision of writing a clean and neat business plan and pitching for funding should be taken only when the startup has grown to a certain level where demand increases supply. This phase of business is crucial and may not be manageable with limited funds. Here again, an entrepreneur must get out of the biased notion that only an angel or venture capitalist can fund a startup. There are certain companies who look to make long term investment and to impress them is not a challenging task, as all it takes is a good idea, right talent, good direction, sincere dedication, strong business plan and a pinch of luck. Another advantage is that since these giant companies look at it as a long term investment, there would not be constant pressure on the startup.  

Young Tech Startups Crafting the New Face of Indian IT Industry