By Sushank Arora, Co-Founder,Vision Startup Accelerator & Founder, Nyra® Kitchenware
Lucknow: In my role at Vision Startup Accelerator, I’ve had the privilege of engaging with numerous startups from non-metrocities,where the entrepreneurial ecosystem is still burgeoning. A pervasive misconception I’ve encountered among founders in these areas is the belief that securing funding is merely about finding willing investors. The truth, however, is much more complex and structured.
Entrepreneurs in smaller cities face significant hurdles due to limited access to robust investor networks, mentorship opportunities, and structured accelerator programs. Unlike their counterparts in metro cities, where resources are plentiful and networking events frequent,these founders often find themselves having to go the extra mile to establish credibility and enhance their visibility.
The influence of media and television, particularly shows like Shark Tank India,has undoubtedly raised awareness about startup funding. However, the reality of securing investment is starkly different from what is often depicted on television.
On the show, investors are highly selective, rarely backing idea-stage startups. This portrayal can mislead early-stage founders into assuming their experiences with real-world investors will mirror those seen on TV.
In reality, investors scrutinize far more than just revenue figures. They evaluate a startup’s scalability, technological innovation, competitive advantage, and the founding team’s robustness. Crucially,they assess the potential for a profitable exit strategy, whether through acquisitions, IPOs, or other liquidity events.
For entrepreneurs in emerging startup hubs, the takeaway should be clear: securing funding involves more than just owning a business. It requires demonstrating substantial long-term potential, sound strategic execution, scalability, and a clear pathway to deliver returns to investors.
Rather than solely focusing on securing immediate funding, I advise founders to concentrate on building a business that inherently attracts investment.Engaging with local accelerators, seeking out experienced mentors, and participating in startup workshops can provide invaluable insights and forge connections that might prove crucial in your entrepreneurial journey.
