Innovation Financing Options

Corporate Venture Capital and Unicorn Investing GV (Google Ventures) leads with an impressive 90 unicorn investments, followed by Salesforce Ventures (42) and Intel Capital (40). CVCs, if they are well designed and well run, can offer startups value-add in addition to traditional VCs, such as built-in infrastructure for scaling and access to their supply chain and partners. CVCs can also help with distribution channels & market access. For example, Salesforce Ventures doesn't just invest – they provide access to Salesforce's massive customer base through their AppExchange marketplace. The high unicorn count from these CVCs isn't just about capital – it's about being able to provide infrastructure that accelerates scaling. But having a lot of unicorn investments does not guarantee longevity of the CVC unit. Some CVCs on our list have been disbanded or their investment activity has been curtailed. In some cases, CVCs may not provide high enough strategic value. In other cases, parent companies need to acquire the venture mindset and design the CVC unit more effectively.

🏛️ The EU just launched a game-changer for nature-positive innovation: Nature Credits. The new Roadmap towards Nature Credits sets the stage for a high-integrity, science-based market that rewards biodiversity restoration and ecosystem services, beyond carbon! 🚀 Why this matters for early-stage ventures: 📜 New revenue streams: Monetize biodiversity outcomes through certified credits. 💸 De-risking innovation: Public seed funding and blended finance to support early movers. 🧺 Market validation: Certification frameworks build trust with investors and buyers. 🤑 Why this matters for investors: 🌳 First-mover advantage in a new asset class beyond carbon. 🚰 Co-benefits like climate resilience, water security, and social impact. ⚖️ Policy tailwinds from CSRD, EU Taxonomy, and the Nature Restoration Regulation. “We have to put nature on the balance sheet.” - Ursula von der Leyen, President of the European Commission, July 2025 The EU is inviting stakeholders to co-create this market: a rare opportunity to shape the future of biodiversity finance. 📘 Read the full roadmap: https://lnkd.in/eb_4SW-8 📢 Let us know what this means for your venture or investments! #NatureCredits #BiodiversityFinance #ImpactInvesting #GreenEconomy #NaturePositive #EUCommission #ClimateFinance #Sustainability #ESG #RegenerativeEconomy Photo Credits: https://lnkd.in/ecFsCSTJ

USAID was involved in supporting Kenyan startups through various funding initiatives. Notable examples include: BasiGo: Received a $1.5 million grant to pilot and scale electric buses in Rwanda. Maisha Meds: Secured $5.25 million in scale-up stage 3 funding from USAID's Development Innovation Ventures (DIV). Kentaste Products Limited: Launched a $100 million investment to enhance Kenya's coconut industry through processing and value addition. SOLARGEN TECHNOLOGIES LTD. Technologies: Obtained $2.5 million in quasi-equity financing from the USAID Impact for Northern Kenya Fund to implement innovative solutions like solar-powered water purification systems. PULA: Granted $1.5 million to deliver innovative agricultural insurance through technology. Additionally, the U.S. International Development Finance Corporation (DFC) has provided loans to Kenyan companies: Ilara Health: Received a $1 million loan. M-KOPA: Provided with $51 million in debt financing. Twiga Foods: Disbursed a $5 million loan. The current ongoings at USAID underscores the necessity for Kenyan capital stakeholders to explore diverse funding avenues to sustain and grow the country's entrepreneurial ecosystem. There is a video of Jeff Bezos discussing that one of the main reasons for the U.S.'s entrepreneurial success is its exceptional access to risk capital. This got me to reflect on the current mechanisms of capital in Kenya and the need for innovation in the industry to meet the demands of a clearly lucrative market. For instance, the Kenya Bankers Association had the Sustainable Finance Initiative back in 2015. The aim was to equip the financial services sector with the tools necessary to balance business goals with economic development priorities and socio-environmental concerns. Building upon such initiatives, Kenyan banks could collaborate to form a local version of Silicon Valley Bank, distributing risk among themselves while fostering innovation. NSE could develop instruments to attract public investment in startups. By partnering with early-stage investor firms such as Antler, Baobab, and Endeavor, the NSE can identify companies seeking Series A or Series B funding. VCs often rely on private equity sourced from institutional investors like pension funds or insurance firms, which ultimately represent the public's money. Therefore, directly engaging the public to invest in a portfolio of high-risk, high-reward ventures could be a viable strategy, allowing individuals to make decisions aligned with their risk appetite. Additionally, pooling resources from multilateral development finance institutions like AfDB or Afreximbank could provide substantial funding for high-risk, high-return investments. Ultimately, we need to develop mechanisms that enable investment in local enterprises—be they zebras, camels, or giraffes. Through such efforts, Kenya can discover and define its own 'mythical unicorns,' to create a self-sustaining startup ecosystem.

One of the toughest challenges for founders is raising capital without giving up too much of what matters most: equity and control. Anthropic, a leader in the AI space, has shown us how to strike that balance with precision. By leveraging convertible debt financing—including Google's $2 billion and Amazon's up to $4 billion—Anthropic deferred equity dilution until a future round when the company’s value is likely to be much higher. Even more strategic, these notes convert into non-voting shares, ensuring the founding team retains the decision-making control needed to stay true to their vision. This isn’t just about raising money, it’s about raising money the right way. It's a great reminder of how smart, founder-friendly financing options—like venture debt—can help startups scale while preserving equity and control. 

₹77,080 Crores allocated by the Government of India for startups and manufacturing in 2025. Yet most founders are still chasing VC money. I work with startups daily, and it surprises me how many don't even know these schemes exist. Here's what's available right now The Big Picture: → Deep Tech & Startup Fund: ₹30,000 Cr → MSME Budget Outlay: ₹23,168 Cr → Startup India Fund of Funds: ₹10,000 Cr → PLI Electronics & IT: ₹9,000 Cr → PLI Auto Components: ₹2,819 Cr → PLI Textiles: ₹1,148 Cr → Startup India Seed Fund: ₹945 Cr This is just the major allocations - there's more buried in smaller schemes. Let me break down what you can actually access based on your stage [1] For Early Stage Startups: 👉🏼 Startup India Seed Fund: Up to ₹50L per startup 👉🏼 SAMRIDH Scheme: Up to ₹40L grants 👉🏼 Atal Innovation Mission: Up to ₹15L for prototypes Most founders think these are too small. But remember, this is non-dilutive capital that can get you to revenue stage. [2] For Revenue Stage Companies: 👉🏼 CGTMSE: Up to ₹2 Cr collateral-free loans 👉🏼 Stand-Up India: ₹10L to ₹1 Cr for SC/ST/Women entrepreneurs 👉🏼 Multiplier Grants: Up to ₹10 Cr for R&D projects This is where it gets interesting. Revenue-stage companies have the best shot at accessing larger amounts. [3] For Manufacturing: 👉🏼 PLI schemes across 14+ sectors 👉🏼 Significant incentives for domestic production 👉🏼 Focus on electronics, auto, textiles If you're in manufacturing, you're literally sitting on a goldmine of incentives. The challenge? Most founders don't know how to navigate the application process. Here's where to start: - Startup India Portal [https://lnkd.in/gBdAH52D] - myScheme Portal [myscheme.gov.in] - SIDBI Portal [sidbi.in] - AIM Portal [aim.gov.in] - MeitY Startup Hub [msh.meity.gov.in] What you actually need: ✓ DPIIT registration for startups ✓ Proper documentation ✓ Clear business plan ✓ Compliance records ✓ Incubator partnerships (for some schemes) I've seen founders spend months preparing pitch decks for VCs, but won't spend a week getting their documentation ready for government schemes. The reality is Government funding is often cheaper, comes with less dilution, and has better terms than VC money. But it requires patience and proper documentation. #startupfunding #manufacturing #debtfunding

₹50 LAKHS GRANT FOR STARTUPS - YET 99% ENTREPRENEURS MISS IT As someone who has built businesses both from scratch and with institutional support, I can tell you one thing: knowing how to raise funds is just as important as having a strong idea. Right now, the Indian government is offering up to ₹50 lakhs to early-stage startups under the Startup India Seed Fund Scheme (SISFS). This is not a loan. This is not equity. This is a pure grant. Yet, most startup founders I meet are either unaware of this or believe it’s too complicated to apply for. Here’s what every serious founder needs to know: 🔹 You don’t need a market-ready product. You can apply even if you're at the idea or MVP stage. 🔹 You must be an Indian citizen with a startup registered in India, under 10 years old, and working on a tech-first or innovation-first model. 🔹 You must not have received prior government funding under any other central scheme. 🔹 To apply, your startup needs DPIIT recognition (which is free and easy to get at startupindia.gov.in) 🔹 Once recognised, go to https://lnkd.in/g66vuPaf, choose three incubators, upload your pitch deck and necessary documents, and submit your application. As an entrepreneur, I’ve often seen amazing ideas collapse due to a lack of funds and access. What I’ve also seen is that those who invest time in understanding government systems and startup policies go a lot further than those who wait for VCs to knock on their door. If you're working on an idea that solves a real problem, don’t let the lack of capital hold you back. 🔹 Pitch clearly. 🔹 Show why your idea is innovative. 🔹 Prove that your team can build it. 🔹 Keep your documents and vision sorted. India has never been more startup-friendly than it is today. But this window will only benefit those who are proactive and informed. If you’re building, I strongly recommend exploring this scheme. Every founder should know this. Every startup should at least try. A good pitch can open a ₹50 lakh door. Sometimes, that’s all you need to go from idea to execution. Watch this space for more such insights. And if you're someone working on a strong idea, now is the time to build. #startupindia #founders #entrepreneurship #startupfunding #SISFS #governmentgrants #businessstrategy

What's the difference between a venture studio, venture incubator, venture accelerator, and venture fund? Here’s a breakdown with examples: 𝟏) 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐒𝐭𝐮𝐝𝐢𝐨: Studios create startups from the ground up. They develop ideas in-house, then pair them with founders to build companies. Studios provide deep operational support and a strong network to help the startup scale. They also take significant equity in the business. Examples: Atomic, Human Ventures, High Alpha, betaworks, Science 𝟐) 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐈𝐧𝐜𝐮𝐛𝐚𝐭𝐨𝐫: Incubators focus on helping very early-stage startups develop their ideas (they do not usually provide the ideas like a studio). They provide resources like office workspace, mentorship, and community. These are usually longer, less structured programs. Examples: Idealab, StartX at Stanford 𝟑) 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐨𝐫: Accelerators work with early-stage startups over a fixed-term program to accelerate growth. They provide mentorship, small amounts of capital, and access to investors in exchange for equity. Accelerators are more structured than incubators and outline specific tracks to turn a startup into a scalable business. Examples: Y Combinator, Techstars, 500 Global 𝟒) 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐅𝐮𝐧𝐝: Venture capital funds provide financial backing to startups at different stages in exchange for equity. While they invest, they don’t typically provide the hands-on support that studios, incubators, or accelerators do. Examples: Sequoia Capital, Andreessen Horowitz, Bessemer Venture Partners Key takeaways (bc Nicole I didn’t read all that): - Venture Studio: Builds startups from scratch, offering operational support - Venture Incubator: Provides resources and mentorship to help early-stage startups grow - Venture Accelerator: Helps startups scale quickly in exchange for equity, typically in a fixed-term program - Venture Fund: Focuses on providing financial capital in exchange for equity, with less operational involvement 𝑰𝒇 𝒚𝒐𝒖'𝒓𝒆 𝒍𝒐𝒐𝒌𝒊𝒏𝒈 𝒇𝒐𝒓 𝒄𝒂𝒑 𝒕𝒂𝒃𝒍𝒆 𝒉𝒆𝒍𝒑 𝒂𝒏𝒅 𝑽𝑪 𝒆𝒙𝒊𝒕 𝒎𝒐𝒅𝒆𝒍 𝒊𝒏𝒔𝒊𝒈𝒉𝒕, 𝒄𝒉𝒆𝒄𝒌 𝒐𝒖𝒕 𝒕𝒉𝒆 𝒃𝒆𝒍𝒐𝒘🪄 𝑽𝑪 𝒕𝒆𝒓𝒎 𝒔𝒉𝒆𝒆𝒕 𝒑𝒓𝒐𝒗𝒊𝒔𝒊𝒐𝒏𝒔 𝒘𝒐𝒓𝒕𝒉 𝒏𝒆𝒈𝒐𝒕𝒊𝒂𝒕𝒊𝒏𝒈: https://lnkd.in/g_wQQYfV 𝑻𝒉𝒆 𝒄𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝒄𝒐𝒎𝒑𝒐𝒏𝒆𝒏𝒕𝒔 𝒐𝒇 𝒂 𝑽𝑪 𝒆𝒙𝒊𝒕 𝒎𝒐𝒅𝒆𝒍: https://lnkd.in/gjhyd7fw #venturecapital #startup #founder

This is the exact framework that helped many founders grow companies and exit with more than 50% ownership 95% of startups raise money at the wrong time. They either raise too early and dilute unnecessarily, or wait too long and run out of cash. After working with 100’s of founders, here's the exact roadmap that separates winners from casualties Stage 1: Bootstrap Phase (₹0 - ₹50L Revenue) ⤷ Focus entirely on product-market fit ⤷ Keep burn rate under ₹2L monthly ⤷ Validate unit economics with first 50 customers ⤷ Don't even think about external funding yet ⤷ Use personal savings, family money, or revenue to grow ⤷ Hire only essential team members (2-5 people max) Stage 2: Revenue-Based Debt (₹50L - ₹2Cr Revenue) ⤷ You have proven PMF and positive unit economics ⤷ Monthly revenue growth of 15%+ for 6 consecutive months ⤷ CAC payback period under 12 months ⤷ Customer retention above 85% ⤷ This is where debt financing makes perfect sense ⤷ Raise 6-12 months of runway to accelerate growth ⤷ Use funds for marketing, not team expansion Stage 3: Growth Equity (₹2Cr - ₹10Cr Revenue) ⤷ Strong unit economics with LTV/CAC ratio of 3:1 or better ⤷ Clear path to ₹50Cr+ revenue within 3 years ⤷ Market size of ₹1000Cr+ that you can capture ⤷ Need significant capital for market expansion or R&D ⤷ Team of 25+ people with proven leadership ⤷ Only raise if you can 3x revenue within 18 months Stage 4: Scale Funding (₹10Cr+ Revenue) ⤷ Approaching or at profitability ⤷ International expansion opportunities ⤷ Acquisitions or new product lines ⤷ Series B/C rounds make sense here ⤷ You're competing for market leadership When NOT to Raise Money ⤷ You haven't proven product-market fit ⤷ Burn rate exceeds 50% of monthly revenue ⤷ Customer acquisition is broken ⤷ You're raising to extend runway without growth plan ⤷ Market size is unclear or too small ⤷ You can achieve next milestone with existing cash + revenue The Hard Truths ⤷ 80% of companies never need equity funding ⤷ Most successful companies are profitable by ₹5Cr revenue ⤷ Raising too early kills more startups than not raising at all ⤷ Debt is almost always better than equity if you qualify ⤷ Every funding round should 5x your valuation within 2 years Note: These figures are based on my experience and may vary across industries and markets. Use this as a framework, not absolute rules. Decision Framework Bootstrap → Build until ₹50L revenue with strong unit economics Debt → Scale from ₹50L to ₹2Cr while maintaining profitability path Equity → Only when you need ₹5Cr+ for rapid market capture The companies that follow this roadmap keep 60-80% ownership at exit. The ones that raise too early end up with 10-15%. Which path are you on? #startups #funding #bootstrap #debtfinancing #growth

If you’ve ever thought angel investing is only for rich people in closed-door circles, you’re not wrong! The first time I invested, it wasn’t through a syndicate or formal program. It was through friends, people I trusted who were building something meaningful and needed early believers, not big checks. That’s when it clicked: you don’t need millions to be an angel investor. You need conviction, curiosity, and the willingness to learn. Later, I joined Angel Squad by Hustle Fund, and that helped me formalize my approach, giving me access to vetted deals, shared evaluations, and a network of other investors. Here’s the 5-step roadmap that helped me start, and can help you too: 1. Start with what (and who) you know My first few investments were into startups founded by people I knew personally. They weren’t raising huge rounds, just looking for people who understood their vision. → Even a $1K–$2.5K check counts → What matters is: do you believe in the founder, and can you add value? 2. Invest in what you understand At the early stage, things change, products pivot, markets shift. → Focus on sectors where you understand the problem deeply → Ask: do I believe this founder can adapt when things get hard? In the beginning, don’t chase hype, bet on founders who are resilient and sharp. 3. Learn the basics of angel investing You don’t need an MBA, but you do need to understand: → SAFE vs Convertible Notes → Cap tables and dilution → Pre-money vs Post-money valuation → Pro-rata rights and exit paths Great resources: → Angel Investing School → YC’s SAFE Docs → AngelList Glossary → YC’s Startup School 4. Join a community and learn with others Joining Angel Squad helped me learn how experienced angels evaluate deals. You don’t have to do this alone, great communities include: → Angel Squad → On Deck Angels → AngelList Syndicates → VC Starter Kit These networks help you learn faster and access stronger deal flow. 5. Start small, stay curious, and add value You don’t need deep pockets, just thoughtful conviction. → Start with small checks you’re comfortable with → Track your decisions and ask for updates → If you can, offer your domain knowledge, advising shows you’re invested beyond capital And one final note, angel investing is a long-term game. If you’re expecting quick returns, this probably isn’t for you. These are illiquid, high-risk bets that take years to play out. But if you believe in the builders, and you’re excited to help shape early-stage ideas, there’s real joy in that. Always happy to chat or share resources if you’re exploring this path.

Venture Capital seems to be the defacto thought when it comes to fundraising but less than 1% of founders do so successfully. For those that don’t fit the VC outlook there are other options to give your businesses the stable footing that it needs. Crowdfunding is often seen as a simple capital-raising tool, but for many founders now see it as a strategic choice rooted in a clear vision for how they want to build and grow their company. Building for a community first vs building then finding a community second. For many companies, the decision to crowdfund was a conscious effort to stay close to their core customers and avoid the influence of professional investors. As one founder put it, crowdfunding allows you to raise money without having to "convince a handful of big investors to believe in you." Instead, you are building a community of people who already do. This approach offers key advantages: Values Alignment: It attracts investors who genuinely want to see the business succeed for the right reasons, particularly for mission-driven brands. Brand Ambassadors: The investors who love your product become your most powerful brand advocates, helping to build momentum far beyond the initial capital raise. Direct Control: Founders maintain more control over their company's direction and avoid potential values misalignment with professional investors who may prioritize different outcomes. While crowdfunding is a brave and public process, it offers a way to build a company on a foundation of shared vision and community ownership. It proves that you can scale a business by bringing your fans along for the journey, and that the best investors are often the people who believe in your mission from day one. If you are building a more open investment landscape, where community, access and strong brand stories drive momentum, you can subscribe to my newsletter here on LinkedIn. It is where I share what we are learning as more people get the chance to back the businesses they believe in.