funding landscape is changing: you need to learn the new rules:
TRANSCRIPT
A session for W2EChanging Funding
Landscape: Basics are becoming important
Agenda:Snapshot of Funding LandscapeRecent stories: Tinyowl, Local Banya, Grofers
To worry or notAdapting to the change Preparing to get funded
Snapshot of Funding Landscape: Angel & VC rounds
1000 Deals
$9 Billion Total
Investment
$9 MillionAvg. Ticket
size
2015300
Deals
$5 Billion Total
Investment
$16 MillionAvg. Ticket
size
2014
Snapshot of Funding Landscape: Top Investors
Investor No. Of DealsSequoia 46
Tiger Global 35Accel Partners 33Saif Partners 26IDG Ventures 32
Snapshot of Funding Landscape: Top Deals
Company Investors InvestmentGrofers Sequoia, Tiger Global,
Softbank$120 M
Ola Tiger Global, Didi Kuaidi, Softbank, DST Global
$500 M
Oyo Rooms Softbank, Greenoaks, Sequoia, LSVP
$100 M
Snapshot of Funding Landscape: Top Sectors
Sector Companies
Online Commerce Shopclues, Pepperfry, Urban Ladder, Flipkart, Snapdeal
Hyperlocal & On-demand
Grofers, Swiggy, Urban Clap, Housejoy, Tinyowl, Faasos, Foodpanda
Logistics Ecom express, Gojavas, Delhivery,Blackbuck, Rivigo
Snapshot of Funding Landscape: Emerging Sectors
Sector Companies
Transport Ola, TFS, M-tai, baxi, jugnoo, Shuttl, ZipGo
Budget Hotels Oyo Rooms & Zo Rooms
Media & Content Yourstory, Scoopwhoop, Newshunt
Snapshot of Funding Landscape: Evergreen Sectors
Sector Companies
Health-tech Practo, Lybrate, Doctor 24x7...
Edu-tech Byjus classes, IndiaCollegeSearch
Fin-tech Paytm, Mobikwik, Lendingkart, Freecharge
Snapshot of Funding Landscape: Some New Fund
LaunchesInvestor Fund Size
Accel Partners $ 300 MilKalaari Capital $ 300 MilIDG Ventures $ 200 Mil
Nexus Venture Partners $ 450 Mil
Saif Partners $ 350 MilLightspeed $ 135 Mil
Snapshot of Funding Landscape: What’s Cooking?
350 Mil
40 Mil
E-commerce Transactions $86
Bil
Internet users shopping online
Brazil: 35%
China: 50%
Sri Lanka: 60%550
MilInternet Users
200 Mil
Online Purchasers
$22 Bil India: 11%
Today 3 Years later
In the News: Mass Firings - Tinyowl
Pain Point: Unit economics
In the News: Shutdowns – Local Banya
Pain Point: High Capex
In the News: Scale-backs - Grofers
Pain Point: Low Adoption
Funding Drying Up?: To worry or Not to worry
• Founders need to drive at 300 kmph• Moderation is required. It’s an international phenomena.• Early stage deals are relatively easier. Series A and beyond is
the challenge.• Consolidation is good in long-term • Boom in e-commerce supporting sentiment across other
industries• More than 5 Unicorns in India• Startups a good alternative investment for HNIs• Successful exits for investors in Freecharge, TFS, CommonFloor• SD, Zomato founders pumping money into startups• New fund launches
New Rules: Basics are important• Identify the problem you are solving• Need and paying ability of consumers• Is the market big enough?• First mover advantage is not enough• Differentiation & USP• Barriers to Entry• Customer Experience• Scalability• Unit economics & Operating margin*• Customer acquisition costs• Consolidation vs. Aggressive expansion• Spend wisely• Long-term sustainability
Prepare to get funded: FAQs
• Should I raise funds?• Is this the right time?• How much should I raise?• What are my options?• What equity investors look for?• How much should I dilute?• What documentation do I need?• What does the funding process look like?• How do I reach out to investors?• What can I do to better my chances?
