There are many ways to get the fund for your startups. Each route of funding has some of the good and bad sides. Most frequently used routes are venture funding and debt/loans.
Got funds by dilution of equity by the participation of venture fund houses. In this route approx up to 30% equity dilution resulted.
The disadvantage of this route is the dilution of equity and influence of funds in the business activities. Most venture capital funds want 10x returns in just 3 to 4 years of investment and to achieve this goal they monitor the business activities and growth plan of the startup.
This is the main option to get funds for startups. The disadvantage of this route is that a startup must pay interest on the loans and scheduled payment is mandatory. Late-stage and for medium-level startups this option is a good option to fulfill working capital and growth requirement.
To subdue venture funds influence and from payment of interest, now a novel route is provided by SEBI launching a startup IPO.
Fundraising via startup IPO is a dilution of equity but less interference of fund houses in the business activities. This option is new and it needs some regulatory approvals but it is good for the startups that want to raise funds and runs the business.
A Pune-based startup Alphalogic Techsys is going to be listed on BSE stock market’s startup platform as a first of its kind of fundraising in India.
Startups will raise funds from a group of investors instead of venture capitalists.
Alphalogic Techsys has fixed the issue price at Rs 84 per share and the minimum lot size is 1,600 shares, require a minimum investment of Rs 1, 34,400. Total fundraising is 6.18 crore by allotting 7.36 lakh shares to the investor.
Alphalogic Techsys Ltd is a Software Consulting Firm. It is engaged in offering end-to-end technology solutions, technology consulting services, and support.
Alphalogic Techsys has over 100 clients and each client has multiple technical verticals. The list included one of the world’s largest shipping company based in Denmark, a healthcare giant from the US and firms such as 10XHealth, Venture Harbour, AP Moller Maersk, Artfire.com, Forbes Marshall, American Homeowner Preservation, Haplo, Cloud lending.Inc, Access Truth and Fair health, among others.