नेपाली सन्देश डट कम | १७ चैत्र २०८१, आईतवार १६:०२ 
Ah, have you figured out a profit generating business module or a new market and customer segment or problem area that solve customer’s pain points or feasible market gaps? Let me tell you, the journey of building a successful business begins with a single step and with this you are set to embark your own Entrepreneurial journey and getting initial funding for your company helps a lot.
KNOW THIS, Your investor categories your company from the lenses of business lifecycle.
The first stage of your business Lifecycle is SEED STAGE, is often referred to as the startup stage. This phase is both exciting and challenging. It’s the foundation upon which the future of your company is envisioned and built.
What is the Seed Stage?
The seed stage is the initial phase of a startup’s lifecycle, where the focus is on transforming a well-researched idea into a tangible product or service. At this stage, business is often in its infancy, operating for a short period—typically between 6 months to 2 years, depending on the nature of the business.
For investors, this phase is characterized by high risk with medium to low survival rate, as many startups struggle to transition from idea to sustainable execution. However, for those who succeed, the seed stage lays the groundwork for future growth and scalability.
How do you know if your business is in the seed stage? Here are some key indicators:
1. You Have a Well-Researched Business Idea
Seed-stage companies are built on a solid, well-researched idea. You’ve identified a problem in the market and have a clear vision of how your product or service can solve it and you know the factual market size for your product.
2. You’ve been Operating for a Short Time
Most seed-stage companies have been functioning for a short period, typically between 6 months to 2 years. During this time, the focus is on developing the product, building a team, and gaining initial grip on market.
3. You’re focused on Building a Team
At this stage, assembling a core team is a top priority. You need talented individuals who share your vision and can help bring your idea to life.
4. You’re working to Deliver Your Product and Earn Revenue
Seed-stage companies are often in the process of developing and delivering their product or service to the market. The goal is to start generating revenue and proving the business model.
5. You’re Aiming to Increase Customer Base and Market Share
Another key focus is acquiring early customers and building a market presence. This involves marketing, customer outreach, and refining your offering based on feedback.
Despite having a strong idea and a clear vision, seed-stage companies often face significant gaps that can hinder their progress. These include:
a. Lack of Basic Accounting and Operational Guidance
As initial stage requires you to be a jack of all trades, many startups ignore or lack fundamentals such as record keeping and accounting system as per standards and could not streamline operational processes. Let’s not do that, they are critical for you to get funding and long-term success.
b. Limited Legal Guidance
Navigating legal requirements, such as business registration, intellectual property right protection, and other compliance, can be challenging without expert advice.
Why Venture Capital is Crucial for Seed-Stage Companies?
Seed-stage companies often face unique challenges that make traditional funding sources, like bank loans, difficult to access. Here’s why Venture Capital (VC) is a game-changer for startups in this phase:
i. Access to Credit
Due to their early-stage nature and lack of proven revenue, seed-stage companies often struggle to secure bank credits. Venture capital provides the necessary funds to bridge this gap.
ii. Building a Robust Foundation
VCs don’t just provide funding—they also offer guidance and mentorship. For seed-stage companies, this support is invaluable in building a solid foundation for growth.
iii. Strategic Guidance
Venture capitalists bring industry expertise, networks, and strategic insights that can help startups navigate challenges and scale effectively.
The seed stage is a make-or-break phase for any startup. It’s a time of high risk, but also immense opportunity. If your company has a well-researched idea, a short operating history, and a focus on building a team and delivering a product, you’re likely in the seed stage.
To succeed, it’s essential to address key gaps in accounting, operations, and legal guidance, while also securing the right funding and support. Venture capital can play a pivotal role in providing not just financial resources, but also the strategic guidance needed to build a strong foundation for future growth.
If your company is in the seed stage, now is the time to take bold steps, leverage the right resources, and set the stage for long-term success. The journey may be challenging, but with the right approach, the rewards can be extraordinary.
Thus, we are planning to start a Venture Capital and Private Equity Fund to further facilitate startups and industries in Nepal.
Let us connect at shekharbastakoti362@gmail.com, Pratiksha199619@gmail.com to discuss your venture initiative. Also, feedback, opinions and ideas are also highly encouraged.
(To proceed further, kindly read about next stage of the business lifecycle.)
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