- Early stage investor will be interested in Composition of team members, skill sets, how they are complimenting
- What problem they are solving, gravity of the problem
- Size of the market, actual business size, how much can be addressed by startup, execution capacity of the startup
- Investment life
- Deeptech startup has advantage, product are hard to copy and will have longer business and that is one of the reasons for good traction from investors to deeptech
- Market size of tomorrow
- Disruptive product, is the startup going to have significant change in people’s life
Right timing for fundraising
- Raise when you’re able to raise
- 3-9 months of funds you should have before going for raising money
- Its more about mindset. Don’t dilute too much for too little initially
- Examine closely, the need of raising money
- Sometimes founders spend so much time on raising funds that they overlooked customers
- Raise sufficient
- Look for grants Available from government & other related agencies
Maximizing valuation
- Through acquiring customers and market
- There is herd mentality among investor as well
- Try to get more VCs interested
Interesting sectors from the point of view of investor
- Edtech
- Offline to online enabler
- Healthcare is picking up
- SAAS model getting lot of interest
- Indian startups looking at global markets are attractive
- AI is the horizontal platform touching almost all the sectors
- VCs are more attracted to digital startups
- Investors has started putting money in non-metro cities – digital has blurred the division between urban and rural
- Defense is long/difficult area, limited options, should look for new or investors who actively invest into defense.