The companies at 100 billion dollar values, today were once just 2 people teams with an idea and a prototype.
Or better still, the transition from a from a flawless MVP to a million user worthy project is what can happen here*.
Mention your funding requirements, projected disbursement of funds, expected post money valuation and
Slide Deck. A detail document describing the founders and the story of your startup.
If you are seeking an investment of less than Rs. 12 Lakhs, we have a very clear term, we take 1% equity for every Rs. 1,00,000/- we invest in you.
Send an email to email@example.com if you fit TSF so far.
*This means that if the teams working on various startups in TSF have built the proposed solution/MVP just about good enough, tested by their early adopters and finally well packaged for marketing. Good enough - what is good enough? Good enough means that the MVP should be used well by the early users, not necessarily perfect or beautiful. Does that mean every startup that is yet not beautiful will also get listed here? Yes. The project must be working well with its small number of early adopters. The marketers and sales vendors of Preseed will join hands with them to bring early adopters/customer traction to these flawless MVPs. Basically this is also where your products can be scaled up out of proportion.
If you wish to invest some of your money into our fund please email at firstname.lastname@example.org
If you don’t hear from us, it means
we are not keen on making an investment in you. We are not in the business of stating reasons,
for the reason may have more to do with us, then you. Anyway, this can be your lifeline from us, in case we decide not to participate with you:
It will be a serious breach of trust if there is lack of confidentiality in any words I share with
you, in person, digitally or otherwise . Allow me to Proceed only if you commit to me that all words
exchanged between you and I will remain between just you I and the directors of our respective
companies; and no one else please.
Through Dealflow we broker deals to earn cash commissions and equity, for opening our network to your startup.
Dealflow network is made up of people we have earned during our journey expressed throughout our web pages and blogs. The people we know are the people your business may need, to capitalise and capitalise big.
Dealflow is your team, you train to work on your investment facilitation, over your lifetime of such fund raises. So simply that they bring to you the right man/men/woman/women with money. Then it is upto to you to convert for they want to just talk to the horse, from his own mouth. During this process we keep hustling from your side of the table to help you receive investment to the point of money reaching your bank account. Only after this do we consider our job done.
The startups should think they are doing incredible hand shakes and giving equities for these handshakes instead. Period. This is the best way of building a business when all handshakes are impactful and aligned. While in the process the founders get money perhaps worth exactly equal to the amount they were originally seeking from us, to extend their own sustenance run way in exchange for equity to those that helped them in getting that money, including us.
“Investors, as long as the startups have enough money from you for their day to day life at ease for 1 year, they will make their dream happen. We look for this quality/ingredient in the founder’s specifically”.
As a matter of policy Preseed values a startup at a post Preseed handshake stage, at a minimum of 1 crore before it brings it forward for investment to the potential investor.
The investors are requested to also bet on the fact that what Preseed is brining to them as a dealflow, once was a mere set of humans with no startup in hand worthy enough, and it was at this time that Preseed held their hand to add its own input into that startup for years, from when founders were early 20 year old kids to now — when they are sitting in front of you.
To say the least, anything lower in valuation is exploitation of Preseed/Nishchal, their network, their do good hippie spirit and their modern collective. Startup assets which Preseed develops relationships with over years are very very valuable, “because my people are rare and their entrepreneurial foundations are strong and deep, a big part of the reason the startup will be successful is that it has us with them over a deal in good faith and words a couple of years ago and the startup decided to keep their word to us forever.
Anything I bring to you, no matter what you can do to it, never value it at less than 1 crore. I will not be interested in bringing anything to you if that be the case. It’s a matter of policy at Preseed and generally in all startup friendly logics in the world, that we accept a valuation of at least 1 crore. Anything of less value is not worth anyone of ours time. You need to on the side agree with me that cafe de Math is worth 1 crore. If yes, then you are genuine in your valuations. If we don’t get this right among you and I, a lot between us may be missed.
No small talks of collateral, security, safety etc. please. If you are looking for that, you are at the wrong place. This is about status quo changing possibilities that go to values of billions someday. Our investor friend has simply gotta be prepared to bear the cost of owning the proposed equity. Simple business math - they pay a cost to own some asset, in this case, not a piece of land, but a piece of a large possibility. High risk, sky high rewards.
Think of the deal with our portfolio startup, like this:
Value any startup I bring such that, if you were to own all of it, you were willing to pay 1 crore of upfront cost for 100% of it. Because the value of what I am bringing to you is greater than the possession of a 1 crore plot.
You are buying a piece of a larger piece of a real estate plot, so that it gives you gains in the future. This piece of land would at least be worth Rs. 1 crore. How do you buy a piece of plot less than that in a prime market of your city? You don't. So is the reason that you can't buy the startup we will be bringing to you at less than that value.
If you don't value the asset we bring to you at atleast that price in spite of the fact that Preseed is a partner in that asset, then you are undervaluing Preseed.
This minimum value of 1 crore per asset as MVP and founding team is the premise of our relationship.
Questions like, what happens if your money drowns, must be avoided please.
Matches made in heaven - If the deal goes through, we take a minimum upto 10% commission and some equity. Why ? Because we make matches between investors and startups that add value in each other far beyond money. However, most importantly, we are getting you the most important immediate resource your business needs. Money. When Preseed introduces you, it matters. We have worked very hard to have now built an extraordinary network of those with money and will to aid an early stage startup. We have prepared most in our network to have that will, to support you with their time and money. We are charging you for that hard work of ours if it brings investment to you.
Before you proceed to dialogue with those we introduce you to, accept words written in contract with the precise equity and commission amounts.
Equity offer and service - If the equity you offer us is 15% or more in advance, you get entitled to receive the service mentioned on Preseed Yoga (mentioned on nishchal.preseed.in, for a lifetime. Anyway, the more equity and wealth we foresee we can earn from/thorugh you or your cooperation, will be directly proportional to how much of an effort we put into helping you raise money. The choice is yours. We are expensive, because, we recognise what we are bringing to your table — money, is key to your growth here on.
Our commissions rates are fixed on actual investment achieved every single time you receive investment from anyone we introduce you to or if you receive investments from any of the associates of whoever we introduced you to, Received now or/and later. Whenever, The final valuations agreed upon will be determined between you and the investor. We will merely facilitate that conversation.
The more equity you offer us, the better we are able to use our advisor network to extend our advisory to you.
Note - our equity gets bought too on a pro rata basis at the time of the deal with the investor.
The more we are able to gain out of this fee, the stronger we serve our portfolio startup. It is in the startup’s interest that we make good money in this process so we serve the startups with all our intentions and sweat, out of bounds. Sometimes we charge commission from the investor too. Be clear please that Preseed negotiates the deal to bring investor the agreed upon % at the instance of his first payment to Preseed as consulting fee. If Preseed makes any gain on it, it belongs to Preseed, it should not be a matter of concern to either the startup or the investor. For both startup and the investor got what they wanted.
The founder should care about just one thing, that they may get money to live 1 more year at ease or so, one day, and it is for that ease that they are sharing equity with someone Preseed is bringing on board.
The bottom line is, the founder gets the money he seeked personally, as if his own shares got bought.
My journey so far and our Google ranking has brought me to a place where a lot of early stage very good startup deals get known to me before they get known to anyone else.
At this stage that startup is generally a good looking opportunity either because:
1. The startup founder of it is really really smart.
2. The product looks like it could one day be with millions of users.
3. In some cases the customer metrics are already solid.
Normally the startups and entrepreneurs within the scope of Dealflow are going to be early stage startups looking to raise anywhere between 5 Lakhs to 5 crores.
Our revenue would be -:
1. Commission from startups.
2. Annual fees from funds/investors.
3. Equity from startups.
I want to build Dealflow and observe the trend, get into deal flows and learn in the process more and more about early stage startup investments and good opportunites, to build an early stage startup research company that researches on investment performance of early stage startups to get trends and experiences.
We will, eventually, over a 3 year period, want to make it into a company that investors go to for getting esrliest deal flow and advisory all at the same time, in context to early stage investments. Because of us, investors should be able to put their money at a better and more calculated opportunity.
*So far TSF is a nearly plausible concept.
Startups are choosing us because of everything stated in this article
We are doing more for the cause of entrepreneurship than we have put in words here for we wish to have you know what we are doing by the result of all that we are doing, not by words alone.
We are a culture of liberal minds trying to do our thing in harmony with another. Let’s just say, Preseed, as an organization, is designed such that we find harmony in each other by way of who we are anyway. Preseed brings the extraordinary minds and hence, the extraordinary creativity and hustle to the table on anything it touches upon.