IT body Nasscom has helped four start-ups raise funding of Rs 40 lakh (Rs 4 million) as part of its programme to help entrepreneurs turn their ideas into successful businesses.
Four start ups - Boutline, Imly, Drawtime and Routo - raised Rs 10 lakh (Rs 1 million) each as part of Nasscom's on-the-spot funding event for pre-revenue companies, Nasscom said in a statement.
Eight pre-revenue companies were shortlisted from the applications received for the 10,000 start-ups programme, which pitched their business ideas to a panel comprising of 10 investors.
Boutline offers event audience engagement app, while Routo has a suite of location sharing apps for business listings and location tracking.
Drawtyme has a mobile video platform for teachers to share interactive videos with students and Imly offers a marketplace of homecooked delicacies.
Under the Smart Capital, Nasscom's 10,000 Start-ups and Microsoft Venture with the support of Mumbai Angels have developed the on-the-spot funding model to help prototypes get the backing of angel investors who invest about Rs 5-10 lakh in them for the same percentage points of equity.
Under the format, very early stage startups pitch for about five minutes to a panel of investors and post the pitch, those who are interested pool together to pitch in Rs 5-10 lakh of funding.
These companies also receive mentoring and connections as well.
"The real value these companies would receive is in form of the mentoring and connections they would get access to through the respective investors," Nasscom 10,000 Start-ups Senior Director Rajat Tandon said in a statement.
This also gives tremendous confidence to those who aspire to startup shortly and that there exists a support structure for them as they take the plunge, he added.
Nasscom had started the 10,000 Start-ups program with the support of Google, Kotak, Microsoft and Verisign.
The programme received 3,000 applications for its phase II and now aims to support the shortlisted companies with funding, acceleration, mentoring and industry connects.
India has a decent mix of seed and venture capital investors but enormous thrust is required on the post prototype stage investments.