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Module 4 · Funding & Equity

The Funding Landscape

10 min5 sections

Lesson content

Scroll through numbered sections or jump via the outline.

What you'll take away

  • Data room: COI, MOA/AOA, GST certs, 12-month bank statements, contracts, cap table.
  • Clarify IP assignment from founders.
  • Know your 18-month use of funds in INR.
  • Identify 30 target investors by thesis, not spray 300 emails.

Stages and who writes cheques

Pre-seed: angels, friends & family, micro-VCs — idea + team, ₹25L–₹2Cr typical.

Seed: angels + seed funds — early traction, ₹2–8Cr.

Series A: institutional VCs — repeatable revenue, ₹10Cr+.

India has active hubs: Bengaluru, Mumbai, Delhi-NCR, plus growing Chennai, Hyderabad, Kochi networks.

Instruments you'll hear

Equity: priced round with valuation and share allotment.

SAFE / convertible note: converts later with cap and discount (less common in India than US, growing).

CCPS: Compulsorily Convertible Preference Shares — popular for VC flexibility.

Understand what you sign — instrument matters as much as valuation.

What Indian investors evaluate

Team and founder-market fit.

TAM in India context — not US deck copy-paste.

Unit economics and retention, not only GMV.

Regulatory path (fintech, health, edtech have extra scrutiny).

Cap table cleanliness and DPIIT/tax posture.

Preparation before outreach

  • Data room: COI, MOA/AOA, GST certs, 12-month bank statements, contracts, cap table.
  • Clarify IP assignment from founders.
  • Know your 18-month use of funds in INR.
  • Identify 30 target investors by thesis, not spray 300 emails.

Alternatives to equity

Revenue-based financing, venture debt post-revenue, government grants (Startup India, state schemes), and bank CGTMSE-backed loans for MSMEs — dilution is not the only fuel.

Questions about this lesson?

Talk to a Pelago advisor — we'll map the right structure and compliance for your stage.