Advances in technology have given way to a variety of new startups. So, when it comes time to begin looking for those investor meetings, you’re competing against more startups to secure time with investors. This competitive buyer’s market also holds the potential to drive down valuations, and even what once was considered the typical funding round.

So in a sea of many, how does one stand out? Here’s how you can get your startup investor ready.

The Right Financials

There are a plethora of financial statements that investors look at when looking at a company, so it’s important to have them on hand and ready at a second’s notice. Profit and Loss statement, balance sheet, the list goes on. It all depends on what stage the business is in. So Simply being able to present your business’ current status and a projection of where you’ll be in the next one to five years is key. It’s important that you have a summary of your current results and a projection of what your financial results will be over time, predicted on the capital you see from the investor.

  • Preparation of CMA Report (Projected Balance Sheet, Profit and Loss Statement, Cash Flow Statement)
  • Preparation of EBIDTA Chart
  • Preparation of Financial ratios
  • Graphical Representation of Financial Charts
  • Up to 10 Alteration in a Financial Year

The Valuation:

Generally startups raise Funds under Equity or CCPS (Compulsorily Convertible Preference Shares). In order to raise capital under these formats the valuation of shares and the company has to be conducted and the valuation reports has to be submitted to RoC while determining the price of Shares

  • Valuation under DCF (Discounted Cash Flow) method

Issue of Shares to the Investors:

As per companies Act 2013, the Shares should be allotted to the Shareholders within 30 days from the date of receipt of share application money.

  • Filing of Share issuance with ROC
  • Payment of Stamp duty on Shares
  • Issue of Share Certificates

Due-diligence Audit and Compliance Management:

Investors always look for companies with good management systems and companies which are compliant from all statutory aspects. So set up or put your processes in place, there needs to be a reliable Audit and Compliance management system in place which investors love.  

  • Due-diligence Audit review
  • Management of all statutory Compliance

FEMA Compliance

As increased globalization in business has occurred, it’s become very common for big companies to branch out and invest money in companies located in other developing countries like India. These companies may be opening up new manufacturing plants and attracted to cheaper labor, production, and fewer taxes in another country. They may make a foreign investment in another firm outside of their country because the firm being purchased has specific technology, products, or access to additional customers that the purchasing firm wants. Overall, foreign investment in a country is a good sign that often leads to growth of jobs and income. As more foreign investment comes into a country, it can lead to even greater investments because others see the country as economically stable. When an Indian company receives funding from a Foreign Company, some mandatory compliances with RoC and RBI becomes a priority or else you will lose the investment money.

  • Filing of ARF (Advance Reporting) within 30 days from the date of receipt of money from foreign country
  • Issue of shares to the investor
  • Payment of Stamp duty
  • Issue of Share Certificate
  • Filing of FC-GPR with RBI

For Further Assistance

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Subrato Mukherjee

I am Professional CA with experience of more than 10+ years. My aim is to help startups and companies to help in various financial needs which is needed to expand the business.

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Subrato Mukherjee

I am Professional CA with experience of more than 10+ years. My aim is to help startups and companies to help in various financial needs which is needed to expand the business.

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