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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.

Team0/20 pts
At least 2 co-founders with complementary skills (tech + business)?

💡 Solo founders raise less capital. Investors want at least one technical co-founder for tech startups.

At least one founder has deep domain expertise in the problem area?

💡 Domain expertise signals you understand customer pain better than a generalist.

Founding team has prior startup or operator experience?

💡 Prior startup experience — even a failed one — significantly increases investor confidence.

Product0/20 pts
Working MVP or prototype that customers have used?

💡 Even a rudimentary working product shows execution ability. Pre-product rounds are very rare at seed.

Clear and differentiated value proposition vs existing alternatives?

💡 Investors ask "why now, why you, why this?" — have crisp answers ready.

Tech stack is defensible or proprietary (not purely off-the-shelf SaaS)?

💡 Proprietary data, model, or integration creates moat.

Traction0/20 pts
At least 10 paying customers or 500 active free users?

💡 The single biggest de-risker at seed. Even 5 paying design partners beat slides.

Month-over-month revenue or user growth of 10%+ for 3+ months?

💡 Consistent growth rate matters more than absolute numbers at early stage.

Strong customer testimonials or letters of intent from target customers?

💡 LOIs and NPS > 50 are powerful proof points even without revenue.

Market0/15 pts
Addressing a market with ₹500Cr+ annual revenue potential in India alone?

💡 Seed investors need to see a path to a VC-backable outcome. Small market = small return.

Market growing at 15%+ per year?

💡 Rising tide matters. Declining or stagnant markets are harder to raise in.

Legal & Structure0/15 pts
Incorporated as a Private Limited company (not LLP or proprietorship)?

💡 Institutional investors rarely invest in LLPs. Convert before approaching VCs.

IP (code, brand, patents) formally assigned to the company — not individuals?

💡 IP owned by founders personally is a common diligence red flag. Get assignment agreements signed.

Clean cap table with no unusual side agreements or prior investor disputes?

💡 A messy cap table slows diligence and can kill deals. Resolve issues before fundraising.

Financial Readiness0/10 pts
Have a 12-month financial model with monthly burn and runway assumptions?

💡 Investors will ask "how long will this round last?" — have a credible answer.

Unit economics calculated (CAC, LTV, payback period or gross margin)?

💡 Even rough unit economics show you understand the business model. Avoid "we'll figure it out after funding."

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.

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