‘Funding vial for rapid scaling up’

Though bootstrapping is necessary in the initial phase for a start-up, seed funding is important for scaling up at a rapid pace, said Rajesh Nahar of Cbazaar.com.

Speaking at a start-up event organised by The Indus Entrepreneurs, Nahar, co-founder and CEO of Cbazaar.com, said the with a slew of start-ups emerging, rapid scaling up is necessary as it is easy to replicate the idea and come up with a better model.

“Investment in technology is also a key factor for growth and funding makes it possible for an entrepreneur to access the latest technologies, which are expensive,” Nahar said. Choice of investors is equally important as it helps entrepreneurs focus and generate better results.

Sriram Manoharan, founder and Managing Director, Contus, an information technology and services company, said many companies start looking for funding right from initial stages and do not generate profit. “Keep cash flows coming in through your idea before getting validated by venture capitalists,” he added.

Chandu Nair, an angel investor associated with Fulcrum, a healthcare focussed funding agency, said before going for expansion, the companies must have a solid business model, which is scalable and profit making.

“There are many investors who are willing to fund but there is dearth in the quality of entrepreneurs and sustainable ideas,” he said.

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