Seed Funding Readiness Score for Indian Startups
Get an honest score across team, product, traction, market, legal, and financials — calibrated to what Indian seed investors actually look for.
Scoring rubric based on what early-stage VCs and angel networks in India typically evaluate. Not a guarantee of investment. Results are self-reported and indicative.
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Frequently asked questions
What do Indian seed investors look for in a startup before writing a cheque?
Indian seed investors typically look for: a strong founding team (2+ co-founders with complementary skills, full-time), a working MVP (not just slides), early traction (even 10 paying customers or 100 users), a large market opportunity (₹500+ crore TAM in India), clean legal structure (Pvt Ltd, clean cap table), and at least 6 months of runway or a clear plan for it.
How much traction do I need to raise a seed round in India?
There is no fixed bar, but Indian seed investors typically want to see: at least some paying customers (even 5-10 is enough for early stage), evidence of product-market fit (customers using the product repeatedly), and a month-on-month growth trend. Pre-revenue companies can still raise if they have strong team credentials, a clear problem-solution fit, and a demo-able product.
What legal and compliance requirements do investors check before funding?
Investors will verify: incorporation certificate (Pvt Ltd is preferred), clean cap table with no disputes, all MCA/ROC annual filings current, no pending legal disputes, ESOP pool documented (if applicable), and founders on full-time basis. DPIIT recognition is a positive signal. Some investors also check GST and income tax filing compliance.
Is DPIIT recognition required to raise seed funding in India?
No, DPIIT recognition is not required to raise seed funding. However, it is a positive signal to investors as it demonstrates government validation and unlocks investor-friendly benefits. Many SEBI-registered AIFs and angel networks prefer investing in DPIIT-recognised startups due to the cleaner regulatory framework.
How much runway should a startup have before approaching seed investors?
Most seed investors want to see at least 6 months of runway remaining at the time of investment (so you have time to deploy the capital). Approaching investors when you have less than 3 months of runway puts you in a weak negotiating position. Ideally, start fundraising when you have 9-12 months of runway — it gives you time to be selective.