Inside The Investor's Mind - How To Get Your Startup Funded!

Getting funding at the right time is one of the major accelerators for budding startups. Experts believe that it is more challenging for electronics and IoT startups to convince angel investors to fund them. What is the reason behind this and how can the situation be turned around?

- Baishakhi Dutta

In the past decide, we have seen the rebirth of the startup ecosystem with a more sustainable business model that is backed by angel funding and venture capital. This is now taking root in tech-related areas, especially in the ESDM and IoT space. We are now gradually seeing the startup ecosystem growing to encompass every nook and corner of the country. India’s economic future lies in encouraging startups, which will bring dynamism, innovation, new ways of thinking and jobs to the Indian economy.

However, convincing angel investors to take the risk of investing their money on a particular project has been quite a challenging task for startups, especially in the newer domains of electronics like IoT. So what exactly do startups need to do?

The real angels

The Indian ESDM and IoT startup story has had many highs as well as lows. While the boom truly began in 2013, it was only over the next two years that investors poured money to back entrepreneurs, products and ideas.

Angel investors are the support pillars on which a startup ecosystem is built. They are the ones who make the first bet on emerging startups, when others hesitate. While this is a risk for angel investors, their investments come as much-needed third-party validation for startups. Angels thus play a crucial role in fuelling a startup’s journey and building the successful companies of the future.