The Startup & IT Promotion Cell, Department of ITE&C, Govt. of Goa organized an insightful Masterclass titled “Fundraising 101: Navigating Investor Questions,” at IT Hub, Altinho. Led by Ms. Snigadha Manchanda, Founder and CEO of Tea Trunk. The masterclass focused on essential strategies for successful fundraising and featured insights drawn from Ms.Snigadha’s personal entrepreneurial journey.
Ms. Sinigadha commended Goa for its remarkable achievement of having three times the number of women founders compared to any other state, praising the state’s robust support for women entrepreneurs. During her presentation, she shared three key lessons for effective fundraising. First, she emphasized the importance of standing firm in your fundraising goals. She explained that wavering on your asks often signals a lack of confidence in your business plan, which can diminish investor interest. This hesitation, typically driven by fear or desperation, underlined the need for integrity and confidence. Second, she highlighted the significance of telling your story. Investors are not just interested in business opportunities but are also drawn to compelling narratives. Ms. Snigadha encouraged founders to articulate their unique stories and the reasons behind their ventures, as a strong, personal narrative can set your business apart and attract investment by showcasing your conviction to disrupt the market. Lastly, she spoke about the value of sharing your failures. Reflecting on past mistakes and demonstrating a willingness to learn from them can be advantageous. She advised founders to be transparent about their failures, as this openness can build trust and show dedication to improvement.
Sharing insights from her personal fundraising journey, she detailed two primary methods for raising capital. The first method involves securing revenue through debt, which must be repaid, while the second option is to raise funds via a convertible note. A convertible note is essentially a loan that converts into equity at a future date, offering early investors the advantage of a discounted valuation. Additionally, Ms. Snigadha emphasized the role of accelerators in the fundraising process. These organizations provide crucial ecosystem support, including assistance with hiring, team building, and fundraising. In exchange for their services, accelerators typically require 2-5% equity in the business. They also handle administrative tasks, offer expert and legal advice, and ensure that all processes are managed smoothly.
She also touched on the roles of secondary investments and angel investors, explaining that these investors are not legally liable for the company’s obligations. Instead, the legal responsibilities rest with the Board of Directors. As a founder, it’s important to understand that the Board is the key group you need to consult and work with for advice, decision-making, and overall guidance for your company.