Investment Thesis: Ramneek Gupta (Part 2)

SM: What are your key investments and the rationale behind making those investments. This will help entrepreneurs understand how you process deals. Do you fund capital-intensive deals?
RG: Only if they can demonstrate a good ROI.

SM:Do you fund built-to-flip deals?
RG: Build to flip is usually not a type we focus on.

SM: Do you fund “hits” businesses?
RG: We do fund “hits” (defined as a company whose success depends on irrational consumer preferences) selectively based on the proven ability of the management team (for example a repeat entrepreneur who has been successful with us in the past) and the sector (for example goods and services for virtual online worlds/communities). However majority of our investments are companies that are addressing a real pain point/problem with a solution that would result in a very large market. We also invest in evolving sectors that might not be very large today but are trending in that direction in a 2-4 year timeframe (think internet related businesses in India).

SM: Describe your ideal entrepreneur.
RG: Ideal entrepreneur fits in three different profiles

(a) Somebody who has been successful before but still has the hunger/energy and the passion to go after a home run

(b) Somebody who has gone through a failed business before and has a lot of learning from it.

(c) A first time entrepreneur who is willing to complement his/her skills as needed and appreciates the fact that he/she needs to build the right team.

SM: Which VCs do you like to work with as part of a syndicate?
RG: In India we are very interested in partnering with early stage VCs that have an operational, hands-on DNA.

SM: What is your thesis on entrepreneurial / investment opportunities given the state of the market? What markets are likely to crash? What markets are likely to open up?
RG: We are big believers in the India consumer and the numerous trends surrounding the Indian consumer. In particular, we like mobile, consumer internet, and consumer finance companies. Additionally, we are interested in a number of expertise driven BPO or ITES companies. It is very difficult to predict which markets are likely to crash, but a number will, which is part of the venture capital investing process. Lastly, while it is still early for India IP companies from traditional sectors (semis, equipment, software, etc.), long term we believe these markets will open up and generate a number of interesting companies from India.

SM: I will write a follow-on post about my thoughts on the “problems” of the 300 Million strong Indian middle class.

This segment is part 2 in the series : Investment Thesis: Ramneek Gupta
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