A couple of months ago, I found my jaw hitting the floor during a start-up pitch. The founder of an early-stage B2C startup revealed that he had previously raised a family and friends’ round of the princely sum of 5+ crores (~$900k). That capital was exhausted in less than 18 months; the monthly burn was […]Read More Family & Friends – Please Save Your Capital!
A few days ago while rushing into a meeting, I heard someone call out my name. I was in a hurry, but I knew the person, so I politely spoke to him for a few minutes. During the conversation, he reminded me of a venture he had recommended that I almost invested in i.e. I […]Read More I Invest in Risky Assets but I am not a Gambler!
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?
There is a serendipity in deal-making once one summarises the events that lead to its closure. Today, as I announce our investment into Haazri, that is how I feel. My first interaction with Haazri was unbeknownst to me, during the long hours that I spent at Yash’s office ordering numerous cups of the chai that […]Read More Why did we Invest in Haazri?
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
Firstly, I want to thank all the people that have taken the time to reach out with words of encouragement for Artha Venture Fund – I. I have been trying my best to reply to each person individually but if I have missed you out, please do know that your encouragement means a lot to […]Read More KISS for Your Customer
After what seems like a lifetime, I am happy to announce that Artha Venture Fund-I (AVF-I) is officially an Alternative Investment Fund (AIF) after SEBI’s grant of the approval. Our team is ecstatic about receiving this news and we are currently working on the final leg of processes, i.e. signing up Limited Partners (LPs) that […]Read More It’s Official, AVF-I is Finally Here!!
If all things are equal between two candidates that want me to be their mentor, what would be the difference, that would make all the difference? No, it’s not how equity you will give me or how much respect you have for me… The correct answer is – desperation. I am not referring to the […]Read More Desperation is the Name of the Game
An interesting phenomenon has been noticed in startup presentations over the past few weeks. Founders have come up with innovative ways of showing large numbers that have nothing to do with what counts as revenues to the startup. Let me share a few examples with the explanations as provided. Gross Transactional Value: this the value […]Read More Fluff Metrics
In the past few weeks, I have met several founders whose DCF valuations for their early start-ups were made by “independent” third parties. These so-called “independent” 3rd parties are chartered accounts (CAs), chartered financial analysts (CFAs) and the like. Their independence went out of the window the minute they took a financial obligation from the […]Read More WACCy Founders, “Wayoff” Valuations