Self Funding vs External Funding

Todays alchemy session was truly an insightful and exuberant debate by our esteemed panellists , and the very supportive as well as responsive audience. On the debate of self funding vs external funding we had the pleasure of gaining knowledge from the stalwarts who face this dilemma on a regular basis, yet have found their ways around most often than not making the sound decision.

Our panellist Mr.Rajat Jain further added the emphasis of 'skin in the game', which he said is an imperative parameter for anyone who externally might take the decision to fund a venture. In response Mr. Sohrab Sitaram an experienced entrepreneur advised about the art of negotiation and urged entrepreneurs to push beyond the boundaries of 'company policies' and not get rattled out to counter offers. He also went on to talk about the synergy between the entrepreneur and investor that requires to be aligned in order to set the vision and work towards the same goal being aligned.

With immense experience in investing and mentoring, Mr.Neeraj Jain provided pointers to those looking to seek external funding, and how one can self asses the dilemma of the funding required. He advised that its wiser to go in for funding post the launch of the product or service as 'disinvestment is considerably lesser and more input may be generated. Mr.Sameer Mathur's views on external funding were

-External funding should be considered post launch of the business rationalising that achieving Proof of concept and getting customers, validate your product/ service & idea
-Raising money through friends and family - type of self funding deters the true validation
-He stressed on the credibility of the founder & his team being a key factor.

We at reciprocity would like to extend our best wishes & gratitude towards our prestigious panel and to everyone who made this session a success.