BV Jagadeesh, Managing Partner at KAAJ Ventures, and a super accomplished serial entrepreneur, discusses funding Bootstrapping with Services ventures.
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During this week’s roundtable, we had as our guest Rahul Chandra, Managing Director at Arkam Ventures, a veteran of the Indian Venture Capital industry. The discussion spanned historical context to current Unicorn mania. Great analysis!
Lumenasia
As for our entrepreneur pitches, up first we had Ashwini Padiyar from Mumbai, India, pitch Lumenasia, a firm assembling manufacturing reps for the lighting industry.
Hyberconnect
Then we had Rajiv Kumar Singh from Asansol, India, pitch Hyperconnect, an electric vehicle charger company.
You can listen to the recording of this roundtable here:
Sramana Mitra: One of the trends that we see in the Indian small funds is that some of them are exiting their investments into the Series C or Series D. Is that something you are doing?
Deepak Gupta: That is certainly a path for us. Unless we keep investing substantially in the later rounds, it doesn’t make sense to keep holding a position because you do get diluted. We have raised funds from domestic investors who have a shorter lifecycle view on investments.
>>>Deepak Gupta, Founding Partner at WEH Ventures, discusses his fund’s pre-seed and seed funding strategy for Indian startups.
Sramana Mitra: Tell us a bit about yourself as well as WEH Ventures.
Deepak Gupta: I had been part of the venture ecosystem over the last 20 years off and on. In the last six or seven years, I have been running a fund called WEH Ventures. We are now on our second fund. We do pre-seed to seed investments which are primarily focused on the Indian market. We have a few companies that are facing overseas. We are fairly sector-agnostic.
>>>Sramana Mitra: My observation is that the higher end of the market is extremely active. I wouldn’t say crowded, but there’s a lot of competition. There is concept arbitrage. There have been successful companies built by copying models from elsewhere and then innovating on top of that. That’s happening in the global tech space.
Then there’s the higher-end B2C space where there is this large population of internet users who are quite affluent. The market that you’re talking about, is it as crowded? Is it as active?
>>>Sramana Mitra: You are investing post-revenue. What benchmarks are you using to gauge whether you can build a venture-scale company?
Eva Yazhari: Because we’re a multi-sector fund, a lot of our metrics relate to specific sectors. Often, we’re looking at the growth of average order value. If it’s more of a services company, we’re looking at the growth of their contracts, the relationships that they have, and the booked contracts that they have. A lot of it is centered around the ability of the company to take what it is doing now and take that to scale.
>>>During this week’s roundtable, we had as our guest Gans Subramanian, Managing Partner at Hourglass Venture Partners, and a former 1Mby1M Premium member who has now formed his own venture fund.
Homeroots
As for our entrepreneur pitch, we had Gil Bar-Lev from Fairfield, New Jersey, pitch Homeroots, a company already beyond $5M in annual revenue, looking to raise a Series A.
You can listen to the recording of this roundtable here: