Pre-Series A Capital


The startup ecosystem has given rise to some interesting terminology. Unicorns used to be mythical creatures, now they are young companies who are valued at over a billion dollars. Pre-Series A (Coined in 2013 in US, Indian entrepreneurs adopted it in 2015) is typically defined by entrepreneurs as a mid-round between seed and Series A.

Pre-Series A is crucial for startups in the Indian context as the bar set for Series A is at an all-time high.

Multiple startups in the same vertical raise angel round but only few (approx 10 per cent) will have metrics to drive Series A. Such startups often raise bridge round with existing or new angels and term it ‘pre-Series A’.

How Funding Works

  • Before exploring how a round of funding works, it’s necessary to identify the different participants.
  • First, there are the individuals hoping to gain funding for their company. As the business becomes increasingly mature, it tends to advance through the funding rounds; it’s common for a company to begin with a seed round and continue with Pre-Series A round (if unable to raise Series-A round).
  • On the other side are potential investors. While investors wish for businesses to succeed because they support entrepreneurship and believe in the aims and causes of those businesses, they also hope to gain something back from their investment.
  • For this reason, nearly all investments made during one or another stage of developmental funding is arranged such that the investor or investing company retains partial ownership of the company.
  • If the company grows and earns a profit, the investor will be rewarded commensurate with the investment made.
  • Before any round of funding begins, analysts undertake a valuationof the company in question.
  • Valuations are derived from many different factors, including management, proven track record, market size and risk.
  • One of the key distinctions between funding rounds has to do with the valuation of the business, as well as its maturity level and growth prospects. In turn, these factors impact the types of investors likely to get involved and the reasons why the company may be seeking new capital.

How Finlender helps you?

We’ve been there

Having worked with many Investment companies, we provide resources and solutions to support initiatives across the entire finance function. We provide objective and unbiased advice on growth capital, capital restructuring, buyouts and any other situation-specific requirements to our clients.

We’re problem solvers

We work shoulder-to-shoulder with Portfolio Company CFOs and their teams to deliver long-term, scalable solutions that improve business operations and maximize investment value. We assist the clients in raising funds or in selling their equities to a financial or strategic investor. We are one of the best Venture Capital investor in India who deliver end to end solutions that take care of all ‘pre’ to ‘post’ sanction needs of clients.

We’re flexible

We have a well-rounded perception of what’s at stake for investors and their operating partners. Finlender brainstorm with management, manage multiple investors and coordinate with service providers for Due Diligence process. We are focused on helping our clients to realize value from each transaction, and tailor our approach to their individual needs.

We’re a trusted partner

We value long-term client relationships and think of ourselves as a trusted advisor. We bring a client-first approach to each engagement and supply services that add value throughout the transaction and investment life cycle.

Investment solutions offered

FinLender India has the know-how to make and implement customized solutions for your corporate financing needs.

Do speak with our Financial Advisor to know more about Pre-series A Investment in India or Pre-series A Investors in India or Pre-series A round funding in India.

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