Fundraising in India: What Has Changed in 2026
The Indian startup ecosystem has matured significantly. With over 100 unicorns and thousands of active VCs and angel investors, raising funding is more structured than ever. But so are investor expectations.
This guide provides a comprehensive, step-by-step checklist to ensure you are fully prepared before approaching investors.
Phase 1: Pre-Fundraising Preparation (4-6 Weeks Before)
Company Structure and Legal
- Company is registered as a Pvt Ltd (required for equity investment)
- All founder shares are properly allocated and documented
- Shareholder agreement is in place
- Board resolutions for fundraising are authorized
- All statutory filings are current (ROC, income tax, GST)
- No pending legal disputes or compliance issues
- IP assignments from founders to company are executed
Financial Documentation
- Audited financial statements (last 2-3 years or since inception)
- Monthly P&L statements
- Cash flow statements
- Balance sheet
- Bank statements (last 12 months)
- GST returns (if applicable)
- Tax returns filed and up to date
Business Metrics Dashboard
- Revenue data (monthly breakdown)
- User/customer metrics (acquisition, retention, churn)
- Unit economics (CAC, LTV, margins)
- Key operational metrics specific to your industry
- Growth rates (MoM and YoY)
- Cohort analysis (if applicable)
Phase 2: Fundraising Materials (2-4 Weeks Before)
Pitch Deck (The Most Critical Document)
- 12-15 slide investor pitch deck
- Clear problem-solution narrative
- Market sizing with credible sources
- Business model with unit economics
- Traction slide with real data
- Competitive landscape analysis
- Team credentials
- Financial projections (3-5 years)
- Specific funding ask and use of funds
- Professional design consistent with brand
Pro Tip: Get your pitch deck professionally designed. Setup India's packages start at Rs.9,999 and include CA-backed financial projections, market research, and custom design.
Supporting Documents
- One-pager / Executive Summary
- Detailed financial model (Excel/Google Sheets)
- Product demo or walkthrough video
- Customer testimonials or case studies
- Market research report
- Technical architecture overview (for tech startups)
- Regulatory compliance documentation (for regulated industries)
Data Room Setup
- Create organized virtual data room (Google Drive, Notion, or dedicated platform)
- Company incorporation documents
- Articles of Association / MOA
- Board resolutions
- Founder employment agreements
- Key customer contracts
- IP documentation
- Employee stock option plan (ESOP) documents
- Previous term sheets (if any)
Phase 3: Investor Targeting (1-2 Weeks Before)
Building Your Investor List
- Research 50-100 relevant investors
- Filter by: stage focus, sector focus, ticket size, portfolio companies
- Check for portfolio conflicts (competing investments)
- Identify warm introduction paths (LinkedIn, events, mutual connections)
- Prioritize based on fit and likelihood
Types of Investors in India
| Investor Type | Typical Ticket | Best For | Examples |
|---|---|---|---|
| Angel Investors | Rs.5L-50L | Pre-seed, Seed | Indian Angel Network, Mumbai Angels |
| Angel Networks | Rs.25L-2Cr | Seed | LetsVenture, AngelList India |
| Micro VCs | Rs.50L-5Cr | Seed, Pre-Series A | Titan Capital, Better Capital |
| Early-Stage VCs | Rs.2Cr-25Cr | Series A | Blume, India Quotient, Kalaari |
| Growth VCs | Rs.25Cr-100Cr | Series B+ | Sequoia, Accel, Matrix |
| Corporate VCs | Varies | Strategic | Google Ventures, Flipkart Ventures |
Outreach Strategy
- Craft personalized email templates (not mass emails)
- Prepare a 2-line WhatsApp pitch (investors in India communicate via WhatsApp)
- Update your LinkedIn profile with clear founder positioning
- Schedule intros through mutual connections where possible
- Plan conference/event attendance for networking
Phase 4: The Fundraising Process
Investor Meeting Preparation
- Practice your 15-minute pitch (time yourself)
- Prepare answers for top 30 investor questions
- Know your numbers cold (revenue, growth, unit economics)
- Research each investor's portfolio and interests
- Prepare 3-5 questions to ask the investor
Common Investor Questions to Prepare For
- Why now? Why is this the right time for this business?
- What is your unfair advantage?
- How do you acquire customers? What does CAC look like?
- Why will you win against competitors?
- What are the biggest risks and how are you mitigating them?
- What are you looking for in an investor beyond capital?
- What happens if you do not raise this round?
- Walk me through your financial model assumptions
- What is your burn rate and current runway?
- Tell me about a time things went wrong and how you handled it
Post-Meeting Follow-Up
- Send thank you email within 24 hours
- Provide any additional information requested
- Share relevant news/updates monthly
- Track investor pipeline in a CRM or spreadsheet
- Follow up at appropriate intervals (every 2-3 weeks)
Phase 5: Term Sheet and Closing
Understanding Term Sheets
- Valuation (pre-money and post-money)
- Investment amount and instrument type
- Liquidation preferences
- Anti-dilution provisions
- Board composition
- Drag-along and tag-along rights
- Founder vesting schedule
- Information rights
- Protective provisions
Due Diligence Preparation
- All legal documents organized and accessible
- Customer references ready
- Technology audit preparation (for tech startups)
- Financial audit completion
- Background checks on founders cleared
- IP ownership verified
Cost of Fundraising Preparation
| Item | Cost Range | Setup India Price |
|---|---|---|
| Pitch Deck Design | Rs.5,000-1,00,000 | Rs.9,999-11,999 |
| Financial Model | Rs.10,000-50,000 | Included in packages |
| Legal (Company cleanup) | Rs.15,000-50,000 | Contact us |
| Data Room Setup | Rs.5,000-20,000 | Included in Premium |
| Total Preparation | Rs.35,000-2,20,000 | Rs.9,999-11,999 |
Conclusion
Fundraising is a structured process, and preparation is 80% of the battle. By following this checklist and investing in professional materials, you dramatically increase your chances of raising a successful round.
Setup India helps founders at every step - from pitch deck design to financial modeling to investor preparation. Our packages start at just Rs.9,999.
Start your fundraising preparation | Book a free consultation