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How to raise smart money through LetsVenture

An insight into features such as Stealth mode, Smart Money and Valuation

 

An insight into features such as Stealth mode, Smart Money and Valuation

If you are a startup that has created a profile on LetsVenture you have already completed step 1; Now you also know or have a general idea about what to expect when fundraising on LetsVenture (If not, please refer to our FAQ section).

This blog is aimed at, helping you understand the process of raising funds on the platform In Stealth mode. Below is a flow of what you are met with as a startup, upon creating your profile :

Create a profile > Upon profile creation, Startup is given 3 options

  1. Visible to all Investors 

  2. Limited Visibility to Investors 

  3. Stealth/Private

    1. If you choose Stealth/Private, you can reach out to relevant Investors of your choice as a stealth startup

    2. Narrow it down to a few & have meetings and discussions with Investors of your choice

    3. Paperwork + Deal closure

Brief overview of the features:

  • Visible to all Investors: Your Startup profile is searchable on LetsVenture. Basic profile is visible to all users but Detailed profile is visible only to all Investors.

  • Limited Visibility to Investors: Your Startup profile is searchable on LetsVenture. Basic profile is visible to all users but Detailed profile is NOT visible to any Investor. An Investor can only request for access to your Detailed profile.

  • Stealth/Private: Your Startup profile is NOT searchable and NOT visible to anyone on LetsVenture. Only after you share (message, invite investor) it with a specific investor, he/she can view your Startup profile.

To enable a better understanding of the feature of Private Syndication and the features that are tied in with the same (Smart money and better valuation), let us dive deeper into this space.

  • Under Stealth mode or Private Syndication mode here, the startup can chose to ‘allow’ select investors to view their profile, hence you are in control

  • The profile link can be shared but will not reveal any information to the investors who haven’t been ‘allowed’ to view the profile.

In stealth mode the startup has control over which investors can view their profile.

As a Lead investor creating a  private syndicate, the investor is able to share the deal with specific co-investors. LetsVenture helps the investor add to their pool of co-investors by making informed suggestions, based on relevant criteria such as sector expertise or preferences. Thus, choosing co-investors for subsequent deals becomes a lot easier and efficient.

  • Smart Money

LetsVenture is an open platform and provides all the access to both investors and founders. Often, we have seen startups and, or their investors mention that they would like to close the funding round within a small circle of investors or need some strategic investors in the round. By providing complete access, we allow startups to choose investors who will not just pump money, but also provide expert advice, industry access and knowledge(in the sector the startup operates) and network; which helps the company in growing their business, and following a mentored path.  This is what we call Smart Money. As an institution, we also advise startups to ensure there are a couple of such investors in the round, even if not all, which will go a long way!

  • Valuations

As a platform, LetsVenture allows the startups to defend their valuations and expectations. A strong founder who can execute, a novel idea , great traction, all add to negotiating a better valuation. As long as the founder can convince and prove to the lead a number, all the investors who invest follow the cue rather than negotiate again, since the validation is already done. While there are ranges of valuations the market normally follows, there are no set rules. LetsVenture believes that every startup is different, and has the right to a fair valuation they deserve!

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