Startup funding in India, stage by stage
Startups raise money in rounds, one stage at a time.
Each stage has its own investors and paperwork.
The stages of startup funding
The rounds come in this order. Each one funds the next milestone. Grants can come at any point.
Pre-seed
The first outside money. It pays to build and test a first product.
Pre-seed funding in IndiaSeed
Money to grow past first users and find product market fit.
Seed funding for startupsSeries A
The first lettered round. It funds growth once the product sells.
Series A funding in IndiaSeries B and later
Larger priced rounds to scale a business that works.
VC firms in IndiaGrants and schemes
Money from schemes and prizes at any stage. Check each one's terms.
Startup grants in India
Which stage are you at?
- Building your first product: pre-seed.
- Live product, still finding fit: seed.
- The product sells and you are ready to scale: Series A.
- Scaling a business that already works: Series B and later.
Who funds startups in India
- Angels: people who invest their own money in startups.
- Angel networks: groups of angels who invest together.
- Accelerators: fixed programmes with mentors and a network. Some also invest.
- VC funds: firms that invest money raised from their own investors.
- Corporate VCs: the investment arms of larger companies.
- Family offices: firms that invest one family's wealth.
- Government schemes: grants, loans and equity, each with its own rules.
How a round is written
- A SAFE gives money now for shares at a later round.
- A convertible note is a loan that turns into shares.
- A priced round sells shares at a set price per share.
- In India, priced rounds may use CCPS. They convert to equity later.
- A grant or prize may ask for no shares. Read its terms.
How to approach a raise
- Know your stage before you write to anyone.
- Raise for the next milestone, not for ever.
- Model the dilution before you agree a price.
- Write to investors who back your stage.
- Look for grants that fit, at any stage.
Investor lists
Start from a list. Then narrow it by stage, sector and city.
Investors by sector
Free tools for every stage
Work out your numbers before you raise. No sign-up needed.
Grants and schemes
Our grants list has 450+ grants and schemes for Indian startups. 153 are listed for the idea stage. 49 ask for DPIIT recognition. Each one has its own terms and window.
Questions founders ask
What are the stages of startup funding?
Pre-seed comes first, then seed, then Series A. Series B, C and later rounds follow. Grants can come at any stage.
What is the difference between pre-seed and seed?
Pre-seed pays to build and test a first product. Seed pays to grow it once users want it.
What is the difference between seed and Series A?
Seed pays to find product market fit. Series A pays to grow once the product sells. Series A is a priced round.
What is a SAFE?
A SAFE is money now for shares later. It converts at your next priced round. It may carry a cap or a discount.