Pre-seed funding, also known as pre-seed capital or pre-seed money, is the small investment you need to get your business started. This money can come from friends, family or investors. Sometimes the people who invest money get a stake in your company in exchange. There are several interesting pre-seeding platforms. Another pre-seed funding option is crowdfunding.
Are you looking for a small investment? There are many companies and entrepreneurs willing to invest in startups and help you to gain market access. Try these pre-seeding funding platforms to start:
1. Daffodil International University:
- EDF: Entrepreneurship Development Fund (EDF) is only intended to be used for the development of all the students of Daffodil International University. It will be allocated as a loan (without Interest) for the business development/ initiation purposes.. It will be considered as the R&D for student’s projects. (Only for DIU running Students)
- Research Fund: Research Fund is the navigator for both startups and businesses that want to accelerate and grow.
- Startup Idea For Fund: Startup Idea for Fund is a platform to support innovative ideas where students are facilitated by mentoring, grooming, assessment of their ideas, sufficient funding, incubation, office space, relevant networking, and legal support, etc.
- Hult Price DIU: Hult Prize unlocks the desire of young people to change the world through business. They challenge young people to solve the world’s toughest issues by empowering them to make money, do good and make life better for millions of people through the creation of for-good for-profit businesses.
- Get in the Ring (GITR): Get in the Ring is a global startup competition active in over 200 cities. They give opportunities to unconventional solutions in all corners of the world, to prove their solutions and solve 21st century challenges. Working alongside industry leading partners, they support the scale and impact that startups make across the globe.
- Are You the Next Startup?: “Are You the Next Startup?” is a national level talent hunt program introduced to find out potential startups and entrepreneurs of Bangladesh. It will hunt, groom, design, organize, and manage new enterprises or business ideas till the ultimate success of each winner.
Small amounts of money from friends, family or strangers who believe in your business can make a lot of difference. Crowdfunding is a popular seed funding option for startups. Present your idea on one of the many crowdfunding platforms and once the first backing is in you will see the great potential of crowdfunding. Check the following platforms:
3. Early Stage Accelerators
There are several impact accelerator programs in The Bangladesh. Gain access to their investments, training facilities and network of experts when you are starting a business in Bangladesh. Take a look at:
Grameenphone Accelerator: The GP Accelerator is an incubator that accelerates 5 startups every year.
35 teams are called in to participate in a two-day long boot camp, from which 15 startups were selected for further rounds of assessment, face-to-face interviews and pitch presentations. Finally, after fierce competition, five companies are selected. This way, from over a thousand applications, 5 standout companies are selected on the basis of the team’s ability to execute and the strength of the business.
GPA provides a 4-month bootcamp at GPhouse. Office space, structured curricula, investor access and mentorship are offered to the top 5 teams in this program.
Teams get the opportunity to learn from local and foreign mentors, industry experts and professionals on critical development elements like term sheet, valuation, financial modeling, branding, etc. Starting from 2014, 5 batches of startups have graduated from this program. Winners receive seed funding of 12+ lakh taka and Grameenphone may take up to 8-10% equity. Some of the notable alumni include Sheba, CMED, Doctorkoi etc.
Toru Impactors: The Toru Institute of Inclusive Innovation has launched the ‘Impactor’ program for early stage startups. Saif Kamal, founder of Toru said in an interview, “We have always had accelerator programs or competitions, but ideas need extensive and long-term support in order to become impactful enterprises.” Impactor program is a 8-month long business incubation program for entrepreneurs who want to transform their idea, early form of a product or an early stage business into a successful business enterprise with a social impact.
30 Impactors learn through a series of workshops. From that cohort, 15 Impactors are selected to continue their engagement, building a business model canvas and growth strategy. The top 10 Impactors embark on a 6-month long journey of business incubation, taking their venture to grow and be investment ready. These Impactors are matched with experts from their respective sectors, receiving individually tailored support. The final 3 Impactors receive up to 10 lakh taka seed funding, and workspace from Startup Bangladesh.
Startups who have worked with Toru include Sheba.xyz, iFarmer, ShopUp and 10MS.
Urban Innovation Challenge: Our cities, our solutions”- with this motto, UIC embarked on the journey to find urban entrepreneurs to reshape our cities with a smart solution. UIC throws 5 challenges which are healthcare, wash, renewable energy, climate change and low-cost urban housing. 5 teams are selected for incubation and each of them receive 5+ lakh taka seed funding. Hands-on training, access to partnerships. further funding opportunities- UIC has it all. The best thing about UIC is that it empowers startups to make our urban lives better. Besides commercial success, startups should also demonstrate societal impact, which UIC strives to achieve. UIC is powered by BRAC.
Tiger Cage: Are you one of those people who binge ‘Shark Tank’ and wishfully think of a Bangladeshi reality show about seed funding? If yes, you’ve got it. ‘Tiger Cage’-an incubator in the form of a reality show where real investors meet real entrepreneurs. Startups with demonstrable prototypes pitch their idea to angel investors. The judges of this show are the ‘Tigers’; when they are convinced, they can choose to invest in the businesses. Participants can get funding of as much as 2 crore taka.
Intelligence Machines Limited, the first startup featured on the pilot episode, have raised 2 crore taka of funding in exchange for 45% of ownership. Sounds cool, huh? Tiger Cage is an initiative of Startup Dhaka.
iDEA Accelerator: iDEA Accelerator was founded by ICT ministry of Bangladesh to foster the culture of entrepreneurship among innovators. Startups that are in both ideation or seed stage are eligible to apply for enlistment. A big cohort of early tech companies have received funding from this platform. It is commendable to see that our govt. is taking part in the revolution of the startup era.
ygap accelerator: ygap accelerator programs aim to back impact entrepreneurs – or as we like to call them ‘local leaders’ –who have solutions to local problems in some of the world’s toughest communities.
Rather than imposing our perceived solutions on a foreign community, we support these local leaders who live there and have developed their own. Meaning our role is simply to help refine and scale their solutions.
Banglalink IT Incubator: Banglalink IT Incubator is a joint initiative of ICT Ministry, BHTPA, and Banglalink. The program supports startups by providing them with mentorship, a free workplace, partnerships with larger companies, and networking opportunities.
Program Length: 4 months
Bangladesh Youth Leadership Center: Bangladesh Youth Leadership Center looks to build connections among youth from diverse backgrounds and equip them with leadership skills. The organization provides a residential entrepreneurship boot camp, funding, and mentorship to admitted companies.
Program Length: 2.5 months.
Before Apply for the fund:
- A Unique /Innovative Idea
- A Rock-Solid Business Plan
- Market Research
- Product Prototype
- Initial Investment
- A Strong Narrative
- Business Readiness
- Clear Knowledge on :What You Need, Where It Will Go, And When They’ll Get It Back
- A Clear Investment Structure