One of the major question that troubles Nepalese entrepreneurs is How can I get investment for my startup. The belief that there is a of lack of funds available to startups has also discouraged several young aspiring entrepreneurs to take a different career route. However, the reality is not so bad, trust me. On this matter, I had the opportunity to get insights from Mr. Sixit Bhatta, CEO and Co-founder, Tootle.
Upon being asked the question, “How tough is it for a startup to get investment in Nepal?” he simply said that it totally depends on the idea and the team. There is no shortage of investors but they do require a strong convincing of the idea, the market potential and the skills of the team to turn it into a successful venture. He also added that the seed funding to convert the idea into a prototype or MVP and to kickstart the venture is readily available.
You will find small angel investors easily willing to put in the initial seed funding however a few years down the line, the investment required to grow or expand your startup to a larger scale is relatively difficult to get unless you have had massive success in your early stage. The appetite for growth and risk is very low among big investors however there are companies that have managed to do so and are doing great in the market.
Upon being asked the question, “How tough is it for a startup to get investment in Nepal?” he simply said that it totally depends on the idea and the team. There is no shortage of investors but they do require a strong convincing of the idea, the market potential and the skills of the team to turn it into a successful venture. He also added that the seed funding to convert the idea into a prototype or MVP and to kickstart the venture is readily available.
You will find small angel investors easily willing to put in the initial seed funding however a few years down the line, the investment required to grow or expand your startup to a larger scale is relatively difficult to get unless you have had massive success in your early stage. The appetite for growth and risk is very low among big investors however there are companies that have managed to do so and are doing great in the market.
We also discussed on how FDI regulations have further curbed the inflow of investment of funds for startups. I asked him if he had troubles raising funds for Tootle. He laughed and said that he too had his fair share of troubles. We are not in the Sillicon valley or even in India or China for that matter.
In this blog, I have listed the best ways you can access the investment opportunities for startups in Nepal and what are the prerequisites for applying to them. However, It is ideal to bootstrap(put in your personal funds) at the early stage.
There are even portals like the Facebook group of Entrepreneurs For Nepal where you will always find people eager to invest in promising businesses. Also, before moving forward with your idea and trying to procure funds, make sure you have validated your idea well to avoid massive failures.
1.Idea Studio Nepal – Idea Studio is a platform that provides support to early age startups in a 360-degree approach. The process starts when the applications for business ideas of social innovation are called nationwide. Upon several shortlisting, mentoring, and pitching rounds, the top 5 winning teams secure the investment and incubation opportunity. Follow the link to know more about them.
2. Udhyami Seed Camp – While most investors require a working model or an already established company for investment, Udhyami Seed Camp aims to identify some of the best idea phase startups and provide them with the necessary resources to help them refine their business idea and kick-start their entrepreneurial journey. Read here.
3. Nepal Entrepreneurs Society – With an aim to help 10,000 startups within 10 years in Nepal, Nepal Entrepreneurs Society has been providing training, incubation, and investment opportunities to startups. In 2019, 5 startups received investment pledges with their help at Nepal Startups meet. Read here.
4. Biruwa Advisors – Biruwa Advisors is a business and management consulting company. They will not only help in investment but also in market research, mentoring, networking, consulting, and various other advisory and legal services you might need. Read about their Investment Facilitation here.
5. Nepal Communitere – The I-cube program of Nepal Communitere provides Nepalese entrepreneurs and businesses one-on-one business coaching and mentoring, leadership development, and direct access to financial and business networks. It is a one-year holistic business incubation program. Safal Seed is the platform that takes care of the seed funding part of Nepal Communitere.
6. Business Oxygen – Business Oxygen(BO2) is a private equity fund that has helped hundreds of SME entrepreneurs to scale up their operations by injecting equity and providing technical assistance. Certain criteria need to be met before trying to get investment from them. To know more about what they do and the criteria to be met, click here
7. Antarprerena- They directly invest or co-invest to the companies that undergo through their incubation and mentorship program. Anterprerana has a pool of angel investors who not only provide investment but also the required mentorship and support leveraging the huge networking opportunities brought in by their heavy portfolio of 130 entrepreneurs with 27 investors on their platform currently.
There are many other institutions and investment companies like Kathmandu Capital Limited and Nepal Entrepreneurship Hub that it is difficult to mention all of them. Several banks provide loans to SMEs although they do demand a working of 1-2 years or more. A lot of government funds are also allocated to promote the growth of SMEs. Keep your ears peeled on government portals and news to know about these funds timely.
I told you things are not that bad! Do not let the fear of not getting enough investment stop you from launching your startup. Reach out for help, talk to the right people, just browse the internet and you will find investors willing to invest in legit startups they see potential in.
Next Up
Prospects for Travel Startups in Nepal
Tourism Sector of Nepal as we know carries great potential however we have not been able to capitalize on this opportunity well. After COVID-19, what is going to be the situation of tourism in Nepal?
What are the entrepreneurial opportunities and challenges? In talks with Kanchan Rai, Founder, Ghumante.