Thread by @kumarmanish9

Had an opportunity to listen to MD of one of the organization regarded as pioneer of #VentureCapital in India.

Here are some of the insights from our interactions on #startups & investment

Two things are most critical for startups to succeed
- right talent
- funds

“Investing in startup is not an easy thing. There is FOMO to become angle investor these days.
If as an investor you don’t have skin in the game, it it neither beneficial for startup not for the investor.”

“Startup investors should bring more on the table than just MONEY on the table. More and more startups are looking for right kind of expertise & mentorship along with funding. Investors can bring their knowledge ( HR, Sales, Marketing, Product & Others) to startups.”

“There are around 80K-1 lakh angle investors in 1.4 billion strong India. There is this new fashion to become angle investor for high return expectations in short term.”

“Startups are uncertain as they don’t have any past history of performance in comparison to listed companies where generally people invest through different available options in market. In startup, you look for idea & team behind it.”

“Entry is easy in Startup funding but exit can be long and arduous journey. It is a time taking exercise.

In #startups, Risk is High, Return can be very high or it can be zero too if one don’t exit at the “right” time.”

“As an investor, you have remember that not all investment in #startups are going to give you return and that’s why one should diversify their investments in startups as much as possible.”

“#Startups these days are working more for Valuation than Value generation.

In the long run, it is the value that will matter startup for its success.

Focus should be on sustainable business models than valuation alone.”

“For any aspiring #angleinvestor
- know the people behind the startup
- know the team
- know the industry you are investing in
- understand the business model

#startups

@UnrollHelper