Startups use various instruments to raise funds, and the choice often depends on the stage of the company, its business model, and the specific needs of the founders. Here are some common instruments for fundraising in startups:

• Bootstrapping:

  Bootstrapping involves self-funding the startup using personal savings or revenue generated by the business. While it doesn’t involve external investors, it allows founders to maintain control and ownership.

• Friends and Family Funding:

  Some startups raise initial capital from friends and family members who believe in the business idea. This informal source of funding can be a quick way to get started.

• Angel Investors:

  Angel investors are affluent individuals who provide capital to startups in exchange for ownership equity or convertible debt. They often invest in the early stages of a company and provide mentorship and expertise.

• Venture Capital (VC):

  Venture capital firms invest larger amounts of capital in exchange for equity. VCs typically focus on startups with high growth potential. Funding rounds, such as Seed, Series A, B, etc., are common in venture capital financing.

• Crowdfunding:

  Platforms like Kickstarter or Indiegogo allow startups to raise funds from a large number of individuals. Contributors receive rewards, early access, or equity in return for their support.

• Convertible Notes:

  Convertible notes are a form of debt that can convert into equity at a later stage, usually during a funding round. This instrument is often used in early-stage financing.

• Equity Crowdfunding:

  Similar to traditional crowdfunding, equity crowdfunding allows investors to buy shares in a startup. Platforms like SeedInvest or Crowdcube facilitate these investments.

• Initial Coin Offerings (ICOs) and Token Sales:
  

  In the blockchain and cryptocurrency space, startups may conduct ICOs or token sales to raise funds by issuing digital tokens. These tokens can represent ownership, utility, or access rights.

• Corporate Investments:

  Some startups receive funding from established corporations seeking strategic partnerships or access to innovative technologies. Corporate venture capital (CVC) is a common form of such investments.

• Debt Financing:

  Startups can also raise funds through loans or lines of credit. This involves borrowing money with the commitment to repay it over time with interest.

ShreeG is providing the Preference shares to limited investors for expansion of the projects and executions.Company has completed all processes of issuing shares and raising the capital in the company.All shareholders will complete the agreement process and understand the risk & rewards the holdings.Company are not offering as an guaranteed scheme of fixed growth.The growth and returns are depends on the valuations and growth of the company.

Preference shares, also known as preferred shares, are a type of equity security that combines features of both equity and debt. Companies issue preference shares to raise capital, and investors who hold these shares receive preferential treatment in terms of dividends and liquidation proceeds compared to common shareholders.

Key features of preference shares include:

• Dividends:

  Preference shareholders have a priority claim on dividends. The company pays dividends to preference shareholders before distributing them to common shareholders. The dividend rate is usually fixed, providing a stable income for preference shareholders.

• Liquidation Preference:

  In the event of the company liquidating its assets, preference shareholders are entitled to receive their initial investment back before common shareholders. This gives them a higher claim on the company’s assets during liquidation.

• No Voting Rights:

  In many cases, preference shareholders do not have voting rights or have limited voting rights compared to common shareholders. They might not be involved in major decision-making processes of the company.

• Convertible or Non-Convertible:

  Some preference shares come with an option to convert them into common shares after a specified period. These are called convertible preference shares. Non-convertible preference shares do not offer this option.

• Cumulative or Non-Cumulative:

  Cumulative preference shares entitle the shareholder to receive any unpaid dividends in the future, even if the company didn’t pay dividends in previous years. Non-cumulative preference shares do not accumulate unpaid dividends.

• Redeemable or Irredeemable:

  Redeemable preference shares can be bought back by the company after a specified period. Irredeemable preference shares cannot be bought back by the company.

• Equity Crowdfunding:

  Similar to traditional crowdfunding, equity crowdfunding allows investors to buy shares in a startup. Platforms like SeedInvest or Crowdcube facilitate these investments.

• Initial Coin Offerings (ICOs) and Token Sales:
  

  In the blockchain and cryptocurrency space, startups may conduct ICOs or token sales to raise funds by issuing digital tokens. These tokens can represent ownership, utility, or access rights.

• Corporate Investments:

  Some startups receive funding from established corporations seeking strategic partnerships or access to innovative technologies. Corporate venture capital (CVC) is a common form of such investments.

• Debt Financing:

  Startups can also raise funds through loans or lines of credit. This involves borrowing money with the commitment to repay it over time with interest.

Every investor should be aware that an investment in any company or holding shares of a company investing in any investee company (each, a “Startup”) involves a minimum degree of risk, regardless of whether such investment is made directly or through a reference.

Startup investments carry a minimum level of risk. Startups face enormous operational risks. While targeted returns in any investment situation should represent the perceived level of risk, such returns may never be realized and/or may not be sufficient to recompense an Investor or a Fund for risks taken. It is not possible and likely that an investor’s entire money will be lost. Furthermore, any return on investment is exceedingly unclear in terms of timing.

• Dividend Yield:

  The dividend yield is a measure of the annual dividend income an investor can expect relative to the current market price of the stock. It is calculated by dividing the annual dividend per share by the stock’s current market price.

• Payment Frequency:

  Dividends can be paid on various schedules, such as quarterly, semi-annually, or annually. Some companies pay special dividends outside of their regular schedule.

• Dividend Reinvestment Plans (DRIPs):

  Some companies offer DRIPs, allowing shareholders to reinvest their dividends to purchase additional shares of the company’s stock.

• Taxation:

  Dividends are usually taxable income for the shareholders. The tax treatment of dividends can vary based on the investor’s jurisdiction and the type of dividend.

• Dividend Policy:

  A company’s dividend policy outlines how it intends to distribute profits to shareholders. Some companies prioritize regular dividend payments, while others may reinvest profits for growth.

Company decided to deliver the minimum dividend yield to the shareholder for a limited period as terms and after the capital will convert as equity with sharing based.

Your investment is solely based on your own judgment, knowing the risks involved in this dynamic marketplace. We do not guarantee a capital gain value or share price on maturity because it is dependent on market conditions and start-up execution.
But as a rule of thumb, Angels all over the globe say that a 5x return over three years is respectable, but a 10x-20x return over three to seven years is a Joke.

An investor may sell their holding (i.e. shares of the company) to anyone they may know, such as friends or family. The company can also facilitate this sale through the secondary transfer of the shares held by the selling investor to an incoming investor (identified by the selling investor).

The value of shares in a company can increase through various factors that influence the market perception and financial performance of the company. Here are some key factors that contribute to an increase in share value:

• Earnings Growth:One of the most significant factors influencing share value is the company’s earnings performance. If a company consistently reports strong financial results and demonstrates growth in earnings, investors are likely to view the stock more favorably.
• Revenue Growth:Increasing revenue is a positive indicator of a company’s business health. Companies that experience consistent revenue growth are often rewarded with higher stock valuations.
• Profit Margins:Improving profit margins, which indicate the efficiency of operations, can lead to higher earnings. Companies with expanding profit margins are often viewed more positively by investors.
• Dividend Payments:Companies that pay regular dividends and increase them over time can attract income-seeking investors. This can contribute to a positive perception of the company and drive demand for its shares.
• Strategic Initiatives:Successful implementation of strategic initiatives, such as entering new markets, launching innovative products, or completing successful mergers and acquisitions, can positively impact a company’s valuation.