Seed Funding or seed capital refers to an investor investing capital in a new company and is in return offered an equity stake in that company. This type of funding originated in the United States where rich tech billionaires invested small sums of money in promising startups. The term “seed” refers to the early stage of investment that is made. Bangalore which is the startup capital of India is also home to some of the best incubators and accelerators who not only help you build your product but also connect you to investors. Now this long list has a new entrant – Kstart !
Kalaari Capital, a leading VC firm announced last week the launch of it’s unique seed program called K-start. K-start will nurture the next generation of startups who will re-create web 3.0. Ratan Tata was present to inaugurate the hub at a glitzy ceremony held in Whitefield, Bangalore.
India is a fast growing economy, startups are sprouting up across the length and breadth of this country. The government too is now looking at startups to create solutions and provide employment to the growing workforce in this country. However statistics reveal that that only 1 out of 10 startups succeed while the remaining 9 fail to transform into successful companies.
Transforming young startups into successful global conglomerates requires capital, strategic planning, community support and access to resources. Kstart seeks to enable companies to access all of these.
KStart has been conceptualized on the basis of the following 5 pillars :-
- Fair Capital – Venture Capitalists have a unenviable reputation among some entrepreneurs, they are often referred to as Vulture Capitalists. Kaalari Capital seeks to change that by helping startups raise capital at a fair price. Founders of early stage startups are vulnerable to large equity dilutions and can lose control over their companies, to prevent this K-start offers capital to founders (Upto US$ 500k or Rs 3.3 Crore) via a convertible equity instrument.
- Catalysts – Founders of startups lack experience and access to professional networks, who can give them advice on steering their business. Kstart hopes to change that by connecting founders to established mentors under the Kstart Catalysts program. Many Kstart Catalysts will also be co-investors in their companies.
- Partners – Kalaari Capital intends to tie up with various service providers who will provide startups access to their platforms, tech and know-how.
- Kstart Institute – Startups have an unlimited need for new talent and skills. Today there is a high demand for niche technical skills like UI design and UX design. Kstart institute will help portfolio companies generate a culture of continuous learning among their employees by offering new courses. A new curriculum is already under development at the Kstart Institute.
- Respace – Is a dynamic space that helps foster creativity. It is located at the International Technology Park off Whitefield. The artistic space has been created by more than 15 artists from around the globe and has pushed the limits of a traditional corporate space. A few images of Respace are given below :
Companies interested in getting seed funding from Kalaari Capital can submit their completed applications at http://kstart.in
Are you a company that has received investment from Kaalari Capital ? If so please let us know how your experience was in the comments section below .