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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Arjun's early-stage startup has a viable idea but no product yet, and needs mentoring, office space and networking for a few months, with a small seed investment. Which type of support is best suited to his need?

Admission to a business incubator suits Arjun. Incubators support early-stage ventures with mentoring, shared workspace, networking and sometimes seed funding. Main board listing, public debenture issues and large bank loans require an established track record or cash flows, which a pre-product startup does not have.

  1. AListing on the main board of a stock exchange
  2. BAdmission to a business incubatorCorrect
  3. CIssue of non-convertible debentures to the public
  4. DApplying for a large-scale term loan from a bank

Explanation

Incubators provide mentoring, workspace, networking and sometimes seed funding to early-stage ventures. A main board listing and a public NCD issue need an established track record. A large term loan is unsuitable for a pre-product venture without cash flows, so it is wrong.

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