No one can doubt that the Indian PE/VC ecosystem is going through a golden run. The amount of money flowing into the ecosystem is breaking records –records set just the previous year! If I narrow the PE/VC down to just “start-ups” then Indian start-ups have raised $11.3 billion this year – up from $10.5 billion […]Read More Navigating the Indian Seed Landscape
In the past several weeks, I have been astonished at the size of seed rounds that founders expect to raise in their first round. My jaw hits the table when a founder blindsides me with requests to raise seed rounds of $1 million to as high as $3-4 million!* These are the start-ups that have […]Read More The art of how much to raise
It is easy to figure out when founders have been pitching for investments without any success and for a while. The pitches become nonstop monologues that will end at the allotted time or when abrupted by questions from us. Naturally, the founders overcompensate to avoid failing on another pitch. They try different tactics to avoid […]Read More The failure vortex and how to get out of it
There are very few things that I do not love about venture capital but taking a founder through due diligence is one of them. I have written about the importance of due diligence in the past and a best-case scenario, due diligence should not take more than 30 days to complete. But realistically it takes […]Read More Be prepared for due diligence BEFORE your fundraising!
Many things are important towards the success of a start-up pitch but getting the audience to relate to the problem that is being solved can be the difference between a nod or a nay. For many founders this could mean that they must essentially dumb down their pitch, and I would agree with that approach […]Read More Sell the Sizzle in Your Next Pitch
I sat through a pitch call today that went on for 35 mins (but it seemed much longer). The founder kept going through slide after slide of information which harped on the same point (the business model). To move things along I valiantly attempted to summarize the business model for the founder and indicate that […]Read More Keep the Fundraising PPT, Simple
It is important that founding teams declare if two of the co-founders are married to each other, blood relatives or cousins. The team can choose to reveal that after the pitch, but I prefer if the team takes the bull by the horns and reveals the full extent of the relationship before they start the […]Read More When is the Best Time to Reveal that Your Cofounder is Related to You?
A marked increase in the number of angel investors joining the ecosystem has led to a problem of plenty for many angel networks. Most of them boast of having hundreds if not thousands of investors spread across the globe. The problem of too much capital chasing too few deals led to a drop in the quality of deals that were/are getting […]Read More The Paripassu is Killing Investor Interest
Last Friday, Siddharth and I were in Bangalore talking to a group of entrepreneurs that were being incubated at NSRCEL. During a Q&A session, an entrepreneur inquired, “how long does it take to get money after presenting to an investor?” Siddharth had the perfect answer, “3 months if everything goes to plan but you should […]Read More What Should I do with my Business, while Fundraising?
In a May 2017 post, The math of early-stage venture capital, I had explained the aggressive return expectations for an early stage VC (the “impatient capitalist”). One of the biggest mistakes a founder can make is to raise impatient capital for a business model that requires patient capital. The incorrect choice of capital leads to […]Read More Are you raising the right type of capital for your venture?