Flashback Friday: Rolocule Gaming

Rolocule Games is a game development studio creating realistic, casual, and social video games for tablets and smartphones. They design games using emerging technologies such as AR, VR, IoT, and AI. From designing award-winning Rolomotion™ technology for Apple to the recent Eagle Eye, which was an SXSW 2019 Innovation Awards finalist, Rolocule is emerging as amongst the leaders in leveraging cutting-edge technology in game design and experiences.

 

Rolocule created the official Australian open Tennis VR game in association with Australian open and Infosys. Their impeccable business ethic about being nimble and flexible has got them rapidly developing multiple games and pivoting, as industry change has become a case study at the world’s top business schools, Harvard and IIM-B.

 

Founder: Rohit Gupta Total funding raised INR 6 Crores
2020 status: Operational in Pune Number of rounds 4
Co-investors: Blume Ventures, Mumbai Angels, CIIE

 

 

  1. Why did you invest in Rolocule Games?

Other than being intrigued by the gaming sector, Rolocule had a fantastic team. What swung my decision was when they were trying to create a game which would utilize your smartphone as a gaming paddle, similar to how the Wii Remote functions. Their game Super Badminton for the iPhone was a huge hit – big enough that they were invited to Cupertino by Apple in 2013.

 

  1. What were the risks involved with an investment in Rolocule Games?

Like with any gaming company, it’s a zero-one risk; it’s either a success or a failure. Rolocule was going to be a success and a fantastic winner in our portfolio, or they were going to shut down. Creating, publishing, and promoting a game is an expensive proposition, and funding would only give them a few chances to succeed. It was also possible that the games would not be received well, and if there were 2-3 failures in a row, it considerably reduces the chances of following games being a success.

 

  1. Where do you place your investment in Rolocule Games when you see the success of games like FIFA, PokémonGo, etc.?

In my opinion, the two aren’t comparable. Apart from the difference in budgets, games like the FIFA series are licensed brand names from the organizations and backed by AAA game studios like EA Sports. PokémonGo has Nintendo’s name behind it, and Pokémon is a sensation on its own. Just these reasons are enough to set them apart, overlooking the fact that games like FIFA are updated and released annually. Rolocule exists in a different gaming space where they’ve integrated the technology in smartphones to software, allowing players to use it as a racquet or a paddle, like the Wii Remote.

 

  1. What are your learnings from your investment in Rolocule Games?

It taught me to be more realistic about zero-one plays, where you need to know when it’s not working and stop pumping more money into it. Initial success is not a guarantor for long-term success. It also taught me that not everything could be gets written off as simply; Rolocule went from becoming a game developer and publisher to just a developer of games. I’ve also learned that the defensibility of games is lower than usual. Similar to how most movies have a shelf life of 4-6 months, you have to reap everything you can in that window of opportunity.

 

  1. Would you invest in a similar startup today?

Yes, but with some caveats. As an investor, I would want better control. With the experience of backing a zero-one style business, I have a much better understanding of the space, and I would invest in an entrepreneur like Rohit again. Still, in terms of the venture, I would be more careful about the valuation and evaluate success, keeping in mind that initial success is not a guarantor of long-term viability.

 

 

Book Review: Ikigai

In my recent memory, Japan has always held the crown for the longest living humans –  almost 20 years higher than the world average. Therefore, it isn’t a surprise that Japan also has the highest centenarians per capita, i.e., the highest ratio of people that are over 100 years old as a percentage of its population.  

Within Japan, the island of Okinawa (aka The Land of Immortals) has the highest rate of centenarians per capita. Okinawa also holds the global immortality title as it has the highest occurrence of centenarians in the world 

The nutritionally dense but low calorieOkinawa diet is credited to be significant factor behind this phenomenon. However, the legend of Okinawans is more than what they eat, which is what Ikigai: the Japanese secret to a long and happy life delves deeply into.  

The word ikigai translates to “the happiness of always being busy, and it is the reason we get up in the morning. What is ikigai, and how do the Okinawans follow it is the concept that reverberates throughout the book.  

Here are my favorite highlights from the book 

  • Okinawans live by the principle of ichariba chode, a local expression that means “treat everyone like a brother, even if you’ve never met them before.  
  • Eat only until your stomach is 80% full  
  • Most health problems are caused by stress 
  • The mind has tremendous power over the body and how quickly it ages 
  • If you keep moving with your fingers working, 100 years will come to you  
  • The last of human freedoms – to choose one’s attitude in any given set of circumstances, to choose one’s own way 
  • We don’t create the meaning of our life – we discover it  
  • We all have the capacity to do noble or terrible things. The side of the equation we end up on depends on our decisions, not on the condition in which we find ourselves.  
  • Accept your feelings. 
  • If we try to get rid of one wave with another, we end up with an infinite sea   
  • We shouldn’t focus on eliminating symptoms, because recovery will come on its own 
  • We can’t control our emotions, but we can take charge of our actions every day 
  • It is much more important to have a compass pointing to a concrete objective than to have a map 
  • Technology is great if were in control of itIt’s not so great if it takes control of us. 
  • The most important thing is to be disciplined in completing the cycle.  
  • If you are not truly being challenged, we get bored and add a layer of complexity to amuse yourself  
  • The most important thing is to focus on the journey 
  • Humor can break negative cycles and reduce anxiety  
  • A happy man is too satisfied with the present to dwell on the future  
  • The secret is smiling and having a good time  
  • Spending time together and having fun is the only thing that matters  
  • To live a long time you need to do three things: exercise to stay healthy, eat well and spend time with people  
  • Talking each day with the people you love, that’s the secret to a long life 
  • They celebrate all the time, even little things, Music, song, and dance are essential parts of daily life  
  • They ate an average of eighteen different food each day 
  • More than 30 percent of their daily calories come from vegetables  
  • Serving food on many small plates makes it easier to avoid eating too much 
  • An active body leads to a calm mind  
  • They concentrate on the things that they can control and don’t worry about those they cant 
  • To practice negative visualization we have to reflect on negative events but without worrying about them 
  • Worrying about things that are beyond our control accomplishes nothing.  
  • It is not what happens to you but how you react that matters  
  • Only things that are imperfect, incomplete, and ephemeral can truly be beautiful because those things resemble the natural world  
  • This moment exists only now and won’t come again  
  • To build resilience into our lives, we shouldn’t fear adversity  
  • Setback is an opportunity for growth  
  • Each moment will hold so many possibilities that it will seem like almost an eternity  
  • Life is not a problem to be solved  
  • Just remember to have something that keeps you busy doing what you love while being surrounded by the people who love you. 
  • Today is all you have. Make the most of it.  

6 Learnings after 60 days of WFH – for Founders

Yesterday was the 60th day since we shut down our office, but it feels much longer. Partly because of the roller coaster journey I have had with a concept that I could not understand, i.e., working from home. In the last 60 days, I have gone from hating to loving the work from home concept and from working myself to the bone to appreciating the freedom and higher productivity this concept brings to my team and to me.   

There are several posts on how to manage employees that are working from home, but very few focus their attention on the founder that is leading their startup through troubled waters. I had 6 distinct learnings that reshaped the way I thought about working from home: 

 

 

  1. Hyper-productivity has its limitations 

    I was guilty of indulging in this mistake for the first 30 days. Theoretically, I saved 90 minutes of commute time; therefore, I decided that I could take on more tasks and responsibilities. Thus, in addition to my duties as a fund manager, I was reworking budgets with our portfolio companiestook on the chief editor role for Artha’s blogs, and I was conducting multiple team calls a day to keep the team focussed and engaged. 

    It was exciting and new the first couple of weeks, and I enjoyed working myself to the point of exhaustion because it kept all the negativity around the crisis out of my mind. However, hyper-productivity began providing diminishing returns the more I indulged in it. 

    It started with general irritability and slight distractions, but eventually, the focus on work suffered, and the list of tasks pending on me started to pile up. Finally, there was just a general numbness to all the work. The enjoyment of completing one task was quickly replaced by the groan of watching the tasks list continuing to expand

    became aware of the toll my hyper-productive avatar was having on my physical and mental health. Eventually, it started affecting my interpersonal relationships – at work and at home. With some sage advice, I toned down my hyperproductivity ambitions and focussed on quality instead of quantity. I concentrated on completing 5 tasks per day (nothing more or less) and utilizing the extra time to expand my knowledge horizon.

  2. Recognizing and dealing with Zoom fatigue 

    It was fun to be on an endless stream of Zoom calls. The meetings were shorter, I drank fewer calories, and I could do double the number of meetings. Then as Brad Feld put it, I started to experience Zoom Fatigue. I caught myself replying to emails, responding to internal team chats, or editing investor newsletters during these online meetings. I was there, but I was not present

    It did not help that I made my meeting schedule so tightly packed that there was no room for error; therefore, if there was an unscheduled call, it would be a couple of days before I could get back to them. 

    At the start of this month, I reduced the time I allocated for online meetings. Encouraged with the results, I have limited my online meeting schedule to just 3 hours a day from this week. This workaround will give me ample down-time to catch up with my inbox, tasks, and team chat – allowing me to be fully attentive during the online meetings 

  3. Taking a break 

    It is ironic that I would find it challenging to take a break from working while working at home. The opportunity to take a break (my TV) is less than 10 steps away, the bed just another 15 steps. Despite my intense working schedule over my 15year working career, I continued to watch at least 1 new movie a week on averageHowever, in the last 9 weeks, I have watched a grand total of 2 new filmsand I had to split watching each one over 2-3 weeks. 

    The fact that the opportunity to take a break was so close developed a false sense of comfort that I could take a break at any time. That time did not come because there was always something pressing that needed my attention.  

    Although it was late, the benefits of taking breaks finally dawned on me. A couple of weeks back, I took a 3-day weekend (I still ended up working for half a day), caught up with friends, and on my sleep. I had a fresh perspective on projects & a spring in my voice when I resumed work, convincing me that taking a break is an imperative undertaking for any founder.

  4. Setting boundaries 

    When we are done with work, we shut our laptops, stuff them into our bags, we commute back home, switching off all the work-related tabs in our minds and refreshing the tabs for our personal livesWhat happens when that commute is cut down to 90 seconds? 

    In my first month I was taking work calls from 8 am to 10 pm daily, I slept with work and woke up in it. There are several times in a year when VCmust put in those types of hours, especially when we are closing multiple deals. However, this was different.

    I did not have time to work out, I took tons of notes with a mental promise to review them but could not find the time to do it. Many a time, I could not remember what I ate for dinner and in what quantity! These endless hours started to take a toll on the team as well.

    I instituted a pm deadline on myself for all workrelated meetings. Everything that could not get completed by 7 pm would get pushed to the next day. To commit myself to this deadline, I started working out on cure.fit with a partner who would ensure that I did not miss workouts, therefore, ensuring that my work-day had an ending

    Without boundaries, the boon of working from home can quickly turn into a curse. Therefore, it is a good idea to schedule winding up and winding down activities so that there is a psychological boundary between work & home. 

  5. Schedule tasks into your calendar 

    There is a big difference between being busy and being productive. One can be busy all day but have nothing to show for their busyness at nightOn the other hand, productivity demands results, it demands focus.  

    I learned an excellent productivity hack that has worked wonders for me. Instead of having a to-do list or a task list – I get my tasks directly scheduled into my calendar, thereby blocking out time to focusThe scheduled slots are limited to 30-45 minutes chunks, with a 15-mins break at the end for contingencies and to report to the team after the job assigned to me is completed. There is an excellent post on Effective Scheduling for more on this. 

  6. Take a vacation 

    It sounds ironic that I would propose vacation time amid an economic crisis, especially when we are working from home! However, a lot of founders have forgone summer vacations due to the way this crisis creeping upon us. As a founder, we must recognize that vacations are essential with several scientifically known benefits of what breaking routines do for our minds & bodies

    While there are minimal options for us to travel for a vacation, there are other ways to take a break from the world and give the body & mind time to recharge their batteries. The Washington Post provided an excellent resource for vacationing at home, aptly titled, The completely correct guide to vacationing at home.

    Oh! You will find the perfect vacation auto-response in my 18-month-old postPerfecting the vacation auto-response.

My Funding Picks For The Last Week (W21)

Every Monday, I sit with my team to review the funding activity of the previous week. From that list, I pick out 3 companies that I would have loved to invest in or find founders that are doing similar things. Click here to know about my rationale behind this weekly exercise.

 

Another 2 weeks of lockdown (probably more for metro cities) should not dampen the investment spirits. Deal activity continues to temper, but it hasn’t completely stopped. Last week saw 13 startups raise $88 million – 8 of which were in the early-stage space.

After sifting through the news (aggregated from Tracxn, Inc42, and YourStory), I picked out these three as my favorite funding news from last week!

 

Name: Refrens

Amount Raised: Undisclosed from Vijay Shekhar Sharma, Anupam Mittal, others

What does Refrens do?

Edited from Traxcn: Refrens is accounting software for freelancers. The features of the product are expanding customer base by referrals, budget planning, creating GST invoices, reminders, and more. The product is free for freelancers such as software developers, logo and graphic designers, digital marketers, to name a few.

Why do I like Refrens?

The recent economic earthquake and the related job losses will give wings to the gig economy. Several platforms help gig workers promote their wares, but not many that will help them with organizing their back-end operations. The stellar angel investor star cast backing this deal should provide Refrens an edge over the indirect competition.

 

Name: Log9 Materials

Amount Raised: USD 164K from Deepak Ghaisas

What does Log9 do?

Edited from Traxcn: Log9Materials is a startup in the nanotechnology space. It focuses on graphene-based materials. Also, it undertakes custom synthesizing orders. R&D is centered on energy-efficient technologies based on graphene derivatives. As of November 2016, the company is developing graphene quantum dot-based LEDs and foldable displays and graphene composite based water purification systems. They have developed ‘Smoke-Free’- graphene-based cigarette filter and claims to reduce the risk of getting cancer by 90%.

Why do I like Log9?

I had looked at Log9 in the past when they were utilizing graphene-based technologies for fuel cells & filtration. However, their new product, CoronaOven could get serious traction as the importance of disinfecting things before using or consuming them is taken seriously. If the technology works as it is supposed to, there is a massive market for this product.

 

Name: Scribble Data

Amount Raised: Undisclosed from unnamed Angels

What does Scribble Data do?

Edited from Traxcn: Their platform, Enrich, helps prep data at scale (feature engineering) for data science, and our consulting services are aimed at turning every data science team into well-oiled machines.

Why do I like Scribble Data?

ML engineers love challenges. These engineers take on projects that test their skills and will build their reputation. Eventually, the projects get completed, and they venture out to find a new challenge, and the cycle repeats – but there could be a better solution. Scribble Data’s ML engineering as a service could offer exciting projects to keep ML engineers engaged but, at the same time, provide continuity at a more affordable & flexible payroll for the company. I have asked a couple of my portfolio company’s to reach out to Scribble and test out this hypothesis – the proof will be in the pudding.

Summarizing my exit interview with a venture capital intern 

Two interns finished their learning cycle with Artha this week. One of them wanted to speak to me and get my feedback on his performance during his 4month internshipThe schedule short feedback session went on much longer, and at the end of it, we got into an exciting topic – the importance of forming an opinion.  

I believe our discussion applies to anyone who wants to work in the investment business, especially earlystage venture capital. I am sharing a synopsis of that conversation with the permission of the intern.  

 

Intern: What is one piece of advice for me? 

Me: Form an opinion and be vocal about it. It is acceptable to be wrong, completely wrong, and heinously wrong. However, it is cardinal mistake to have the ability to accumulate and analyze data but lack the courage to form a decisive opinion. The best investors have often sought out views from their peers and from people who could provide them with a fresh perspective. In fact, the investors I emulate often seek out contrarian views to their own to test their hypothesis.  

 

Intern: Why is the trait of forming and communicating our opinions so important? 

believe that investing is the ability to predict future outcomes of current decisions, and an investor’s brilliant foresight finds appreciation only in hindsight. That is why I consider investing more of an art than scienceA room full of experienced appreciators of art would almost inevitably have deep-felt disagreements on the value of Van Gogh. They could all be right or be wrong – we would only find out once the money gets transferred into the sellers account 

 

What should an intern do?  

fondly remember eyeopening realizations I have had during discussions (sometimes heated) with interns, associates, principalspartners, coinvestors, and even entrepreneurs over the last 10 years in venture capital. Initially, it was intimidating for me to showcase my opinions in front of the experienced hands of this game. But I realized that I wasnt learning anything by keeping them to myself. I learned more by expressing my incorrect opinions and recognizing the gaps in my understanding, over keeping my opinion to myself for fear of getting called out.  

A newcomer to the investment industry should seek out experiences where they can form these opinions. Join investment clubs, seek out investors who have strong opinions, even if they are contrarians to their own, but learn how to build and present your investment viewpoint. 

 

Don’t be afraid of being wrong; we learn best through the mistakes we make. Expressing your opinion is a win-win situation. You either get called out and learn where you went wrong, or your opinion contributes valuably to the discussion. Most importantly, you grow with each interaction and learn to receive constructive criticism. 

Are gross profits the key to bulletproofing your startup?

6 months ago, I wrote about the real cost of customer acquisition after visiting the offices of a prospective startup that we were evaluating. After writing the blog, I provided the founder with explicit feedback on why I was passing on the investment. I had laid out our rejection feedback mechanism a couple of years ago, and we continue to follow it at Artha even today.

Handling rejection is not easy. I was in sales for many years, and I still consider myself to be in sales as I sell the opportunity of investing in our fund to prospective investors. As a sales manager, I trained, managed, and fired thousands of salespeople for almost a decade. Therefore, I have directly or indirectly dealt with rejection, a lot.

Hence it does not surprise me when I get a range of reactions to our feedback emails from founders. Their responses range from the grateful and gracious to anger fuelled expletive-laden multi-pager emails, giving feedback to our feedback. I do remember that this founder fell into the former group.

I believe that my post is more relevant today than at the time I wrote it. In 2019 (it seems so long ago now), the early-stage investment market roared on the back of a surge in micro-angel investors & a flood of friends & family capital. These uninitiated investors, many of them investing directly into equities outside of mutual funds, for the first time. They were lured in by stories of the 100s of Xs someone they knew had made.

Unfortunately, their ambitions made them blind to runaway gross losses their investee startups were making, i.e., the direct cost of revenue exceeded the actual revenue brought in. In layman terms, it meant that for every ₹1 of income the startup earned, the direct cost of generating that income exceeded ₹1. Not a sound business situation in any market condition!

My team and I met many of these hyper funded startup founders. We tested their penchant for profitability, at least at the unit economic level, but those were different times. The founders commanded and received unbelievable valuations. My team and I sat and gaped on the side-lines as we saw our anti-portfolio list swell faster than the list of startups that were in our portfolio! I wondered if we were facing a new normal, like a valuation black hole where the laws of economics did not function.

Unbeknownst to the world, a novel virus was raising its ugly head some 4348 km away. In the flash of an eye, the funding flow stopped. Many founders were caught unprepared, and unfortunately, their cheap capital fuelled startups died a quick but painful death.

As investors have realized many times in the history of euphoric investing – it is a startup’s dharma to make a profit. One cannot run (or fund) a startup that makes losses, not for too long. A startup can be accused of buying revenues when its direct cost of bringing in the revenue exceeds the revenue brought in. In a cruel twist, a startup making a gross loss assigns a zero or negative value to the operations apparatus that keeps the doors open. It won’t take a valuation expert to tell you that if opening the doors is worth less than zero – it is profitable to shut those doors.

To clarify, I do not endorse a net-profit strategy for startups that want to grow and scale. However, profitability, at the unit economic level, is a must before a founder decides to chase growth. Fast-growing startups must invest in creating long-term assets (tangible or intangible) to manage hypergrowth because minor issues quickly become massive at scale. Therefore, even the best-managed fast-growing startups build capacity before productivity can catch up, leading to net losses.

A part of the cost of growth gets compensated by adding positive unit economics of every transaction, creating gross profits for the startup. The gap (if any) is filled by venture capital or private equity investors that want to capitalize on the startup’s growth potential.

Even in a harsh fundraising environment, a startup with gross profits can survive. The founders can cut non-critical investments & expenses, utilizing the gross profits to grow the business, even if it is slow growth. Only a gross profit-generating founder can choose to sacrifice growth for sustenance.

However, founders that attempt scaling despite unfavorable unit economics do not possess that luxury. They need a perennial source of capital to continue their revenue buying program. If there is any threat to their source of money, their startup will be in trouble, deep, deep trouble. Just how big is their issue, these founders and their investors are beginning to find that out now.

Moral of the story: gross profits are worth their weight in gold. 24-carat gold.

Finding silver linings

The history of sports and wars is replete with moments of inspiration. The odds are stacked up against the underdog. Out of nowhere, there is a moment of inspiration. The narrative gets altered, the game has a new direction, and an inevitable defeat morphs into an unlikely victory. I’ve previously spoken about the similarities between entrepreneurs and athletes; therefore, it is a given that such pivotal stories show-up in the lives of entrepreneurs and venture capitalists too! It happened during this month.

We shut our office on 18th March, i.e., 32 days ago. I was jittery about the future. The world was teetering at the brink of collapse, our fundraising plans got thrown off its rails, and by the time we shut down the office, moved everyone to work-from-home it wasn’t clear if our portfolio (or we) would emerge floating or underwater (pun intended).

The weekend before the shutdown, we had had a riveting offsite that was chill. But as we rapidly shut down, there was an air of discomfort, even a distrust that whether our goodbyes were temporary or final. I could see that my people were in different stages of depression as they slowly trudged out of Artha’s Coruscant. The moroseness over the collapse of the world started making inroads inside the strongly guarded walls of my work universe.

It was serendipity that while my work world started to spin out of control, I was reading a Dale Carnegie’s, How to Stop Worrying and Start Living. In chapter 6, How to crowd worry out of your mind, Dale talks about the importance of replacing worry with activity. He says:

We cannot be prepped up and enthusiastic about doing something exciting and feel dragged down by worry at the same time. One kind of emotion drives out the other.

In my context, the critical part was to discourage my people from dwelling in the bleak future and get them to start acting. I put up a schedule full of activity for the team (and myself), we took on new opportunities, and we began to collaborate multiple times a day on projects. The team initiated new projects – some relevant and some that I knew was irrelevant – but the vital objective was to keep them gainfully productive – so I approved them.

Even with our portfolio founders, we initiated plans to refocus their attention on the most relevant job at hand, i.e., survive! We worked with them to cut growth spending, shrink expenses, prepare new budgets, and focus no-cost growth opportunities. The efforts started to pay off results slowly at first but much quicker as the plans took hold.

Many founders discovered opportunities that were otherwise looked over, and a number of them started new business lines. The founders loved the proactive approach. However, there were a couple of founders that got shocked into inaction, i.e., they did not want to alter their course even if it meant taking their titanic into the glacier at full speed.

Thankfully our early warnings gave them crucial extra minutes to avoid hitting their iceberg at 22 knots, and they were saved from sinking to the bottom. It was a much-required reminder for all of us on the value of proper prior planning.

Needless to say, the first two weeks of working from home was akin to the chaos that precedes a war. I was up at 5 am (on most of the days) and slept at no earlier than midnight. But my mind was switched on 24/7, as keeping the spirits up for everyone around me became a full-time obsession.

I operated from a makeshift home office (that was previously a storeroom), it had a single window and an air conditioner that threw out hot air for the first week.  I itched to get out of the house, to the airport and fly to an unknown destination. I needed a break, but it wasn’t coming – at least any time soon.

In those initial weeks, I compared my situation to Bruce Wayne’s in The Dark Knight Rises. Bruce is thrown to the bottom of the pit with little energy to climb to the top. But Bruce finds the inner strength to conquer the well, and Bane (eventually). Comparing it to my situation, getting my team and portfolio founders moving was akin to climbing up the pit. However, ensuring that my founders and my team thrive in the face of an inevitable washout would be like conquering Bane.

Part one is done, and I am 100% confident that we are on course to overcoming our Bane.

I’ll get back to you on that.

21 Point Action Plan to Corona-Proof Your Startup Dream

Calling the shutdown caused by the Coronavirus pandemic, an economic crisis is a gross understatement. It could be a crisis for the established business ecosystem, but it is the equivalent of a tsar bomba for the early-stage startup ecosystem. If all of us do not act quickly, the entire venture capital ecosystem is staring down at years of effort, getting incinerated in a matter of weeks.

When the Prime Minister, Mr. Narendra Modi, announced the Janta curfew, he talked about blackout drills and wartime curfews to a population where the majority hadn’t witnessed one. It was a reminder of a dark 15-20 period when India went through several wars with Pakistan & China. That ignited a mortal fear in me as well.

I feared that this crisis could destroy the decades of work that it took to provide confidence to young graduates to convert themselves from job seekers to job creators. We had to show years of results to convince Indian & global investors to pour money into startups via venture capital funds, angel networks, superangel syndicates, and venture debt funds. All this effort all this sacrifice, of the tens of thousands of people that make up the entrepreneurial ecosystem viz. over 39,000+ founders, 10,000+ angel investors, 500+ VC funds, several visionary politicians & government officers is on the brink of collapse.

However, real entrepreneurs are problem solvers, optimists, and overachievers. Any challenge, even something that challenges their mortal existence, will help an entrepreneur find another gear within them. As they say, even in adversity, they only see opportunity.

My team and I started to sound out Artha Venture Fund’s founders on the business impact the coronavirus pandemic was about to make a couple of weeks before lockdown. We asked our founders to create new budgets to account for the onset of nuclear winter in the fundraising world, bring their expenses down to the bare minimum, and to show patience along with courage at this time.

It has not been easy to convince the optimist in them to slow down for now and conserve energy to speed up later. Last week we put all our heads together on a zoom call to chart out an action plan for saving their dream – their startup.

I summarized the call in a 21-point action plan to save your startup memo for the founders. My team went a step further to make it into a beautiful & impactful presentation. In the spirit of joining hands during this adversity, I am sharing that presentation with you:

 

It is important to remember the immortal words of General S Patton:

515f6824aebbd71863babe1bd873d702

Together we will win the coronavirus fight in our homes, in our businesses, and our minds. Let’s roll!
Continue reading

My funding picks from last week (w05)

There were 15 deals in week 5 of 2020 that were available on Traxcn, Inc42, and YourStory,
I sat with our funding team, and after some enlighting discussions, I have shortlisted my picks to:

Name: InterviewBit
Amount Raised: $20 million
Investors: Tiger Global Management & Sequoia India
What does InterviewBit do?
Edited from Traxcn: InterviewBit is an online platform for tech interview preparation. The platform offers gamified lessons with video tutorials, primer problems, and guided solutions for programming, scripting, databases, system design, puzzles, etc. The platform also enables the candidates to get connected with the right companies worldwide based on skills and preferences.
Why do I like InterviewBit?
I like focussed vocational plays. Last year I had picked out GreyAtom as a funding pick as it provided an upskilling platform for data science and web development employees. Therefore picking it isn’t a surprise that InterviewBit got selected even though the $20 million round from Tiger & Sequoia is bigger than a typical Series A round in India.
InterviewBit solves an exciting problem of finding, interviewing, and evaluating tech talent, which is the Achilles heel of the best of Indian start-ups. The CAC for such plays is quite high, but considering the 18-35 lakh rupee salary bracket they target, the rewards may outweigh the costs.
Only request – can someone create a platform for finance and accounting employees! 😊

Name: AdonMo
Amount Raised: Rs. 21.4 crores
Investors: Bace Capital, Astarc & Mumbai Angels
What does AdonMo do?
Edited from Traxcn: Adonmo provides an in-transit cab advertising platform for advertisers to reach their target audience. It enables advertisers to place their ads on top of the cab and select the target location and relevant time slots to display advertisements and track their ads in real-time. It uses a proprietary computer vision and hyper-local technology to identify its viewers and advertise.
Why do I like AdonMo?
It was unbelievable that I had created a business plan to provide contextual ads based on geo-location on top of taxis during a 6-7 months stint in Kolkata in 2012 or 2013. I had reached out to taxi-top display manufacturers in China who could provide the hardware required for this service. These plays were very popular for advertisers in Africa as most homes did not have electricity – therefore, taxi-top displays were the primary distributors of advertising. But AdonMo is precisely doing what I could not i.e., EXECUTE on the idea.
I am excited about AdonMo as it disrupts the hold billboard owners have enjoyed for several decades. A moving billboard provides better and deeper reach to advertisers with exhaustive reporting and must work out to be of much better value than a billboard.

Name: YoloBus
Amount Raised: Rs. 4.28 crore
Investors: Undisclosed
What does YoloBus do?
Edited from Traxcn: Yolobus provides an online-based platform for booking intercity tickets. Users can book tickets by giving details like location, date, time, etc. It offers features like real-time tracking, in-cabin Wi-Fi, Toilet, Pantry, CCTV cameras, etc.
Why do I like YoloBus?
There are several intercity bus services. So what is interesting about just another intercity bus service?
There are several intercity bus ticket booking platforms – So what is interesting about just another intercity bus ticket booking platform?
India is home to the world’s largest and fastest-growing middle-class population. India’s growth pulled 271 million people out of poverty between 2006 and 2016. It is only a matter of time before India’s per capita income will cross $4000 with and a majority of the Indians will belong to the middle to upper-middle class i.e., aspirational class.
This vast majority of people will have a very different consumption basket and preferences compared to the sustenance living Indian, and services like YoloBus cater to a growing section of the Indian audience.
While Yolo may get considered a bit ahead of its time, if it can keep its costs of operation and customer acquisition in control and sustain – there is a big market for it to capture!
One question, though – why are the investors undisclosed? The first time for me to see a release in which the amount gets disclosed but not the investors!  

My funding picks from last week (w03)

There were a lot of excellent deals last week for me to choose my picks. After shortlisting 15 deals from Traxcn, Inc42, and YourStory, I sat with our funding team, and after a lot of enlighting discussions, I have shortlisted my picks to:

Name: Numocity Technologies
Amount Raised: undisclosed
Investors: Ideaspring Capital, Rebright Partners, and ABB Technology Ventures

What does Numocity do?
Edited from Traxcn: Numocity Technologies is an early-age tech enterprise focused on providing digital solutions for electric mobility infrastructure. The company offers products for EV fleets like fleet chargers, central management systems, and battery swap programs.
Why do I like Numocity?
EVs are the future. I have a sizeable exposure to mobility tech through Everest Fleet, Rapido, and Oneway Cabs. I want us to grow our portfolio in EV, especially in the charging infrastructure space, which should do exceptionally well in the times to come – especially for large EV fleets like the one Numocity is targeting.

Name: Instoried
Amount Raised: Undisclosed
Investors: SOSV

What does Instoried do?
Edited from Traxcn: Instoried is an AI-based content optimization tool that evaluates writing standards. The platform analyses your written content provides a scorecard and feedback on how you can improve their written communication. The platform aims to monetize this through paid subscriptions.
Why do I like Instoried?
I am a Grammarly power-user, and I will refuse to write an email, blog post, or media article until Grammarly will approve it. Grammary offers a contextual scanner telling me whether my written post is information, official, negative, positive, or casual. What I like about Instoried (from its explainer video) is that it goes one step ahead and points out which words the scanner is getting its context from and how that can be improved. It is an intelligent tool but will have to see if it can be an intelligent company too!
 
Name: GoFloat Technologies
Amount Raised: 9 lakhs
Investors: Jito Angel Network
 
What does GoFloat do?
Edited from Traxcn: Manufactures and exports flotation and other water safety devices for emergency rescue situations. Their tools are compact, portable, and cost-efficient in comparison to life jackets.
Why do I like GoFloat?
Since there isn’t a demo product or video available on their website, the idea could be pre-product, and with the small funding round, I should have kept this deal out of this week’s list. But I can see a market for a GoFloat due to my love for water sports, liveaboards, and cruises as an avid scuba diver.