StartupTalky

Tag: angel investors

  • Top Women Investors in India

    The investment game has always been a male-dominated arena across the world. However, over time the market is seeing more and more confident women coming into the area of investment. The case has not been different in India either. Even during the pandemic, India saw an increasing number of women coming into investing especially because of the monetary benefits it entails and the idea of financial independence.

    Even though the numbers and popularity are very low, there is absolutely no doubt in the fact that it is a good start. This article will introduce the readers to some of the top women investors in India who have made a significant mark through their wise investments. The time when women were pretty hesitant towards the game of investment is long gone now. Women are more inclined to make strategic investments for earning profits and developing financial security for themselves. Nowadays, more and more women investors are emerging in the Indian market. Some of the most popular women investors in India are:

    Aarti Gupta 
    Anisha Singh
    Anjali Bansal
    Anjali Sosale
    Archana Jahagirdar
    Debjani Ghosh
    Ishani Chanana
    Kanika Mayar
    Namita Thapar
    Ankita Vasishta
    Vani Kola
    Padmaja Ruparel
    Bharati Jacob
    Nita Mirchandani
    Sakshi Chopra
    Bala Deshpande

    Unlock Your Startup’s Potential with Our Exclusive Investor Lists and Resources

    Supercharge your startup’s success with our comprehensive resources. Access investor lists, pitch decks, KPIs, and fundraising guides. Connect with pre-seed investors, angel networks, and family offices, while mastering VC pitches. Ignite your entrepreneurial dreams today!

    Explore Now

    Aarti Gupta 

    Aarti Gupta - Women Investors in India
    Aarti Gupta – Women Investors in India

    A veteran investment strategist, she has been one of the forerunners of the Jagran Group since 2011. She has a Master’s degree in Economics from Northeastern University, a PhD in Economics from IIT Kanpur, and a postgraduate diploma in business studies from Harvard University.

    She is also the Chief Investment Officer at Anikarth Ventures, an angel investing firm. Some other positions she holds include being a National Head for FICCI FLO Startups, which focuses on women investors, to an independent director for Jindal Stainless Steel.

    Aarti also leverages her investment strategy to contribute to several boards of startups and family-owned businesses. She is also a champion for women’s financial literacy, entrepreneurship, and readiness for jobs. 

    Anisha Singh

    Anisha Singh - Women Investors in India
    Anisha Singh – Women Investors in India

    Anisha is the founder of the women-focused VC firm ‘She Capital’ in 2020 to help encourage more women founders to enter the Indian startup ecosystem. Some of the companies associated with VC are BrainSight AI, Samosa Singh, Clovia, Elev8 India Sportz, Spark Studio, and Nova Nova.

    She also founded the eCommerce platform MyDala and started the B2B startup Kinis Software. She is passionate about women’s empowerment and supporting women-focused startups. 

    Anisha Singh Success Story – Founder of Mydala and She Capital
    Anisha Singh is the founder of MyDala and She Capital. She is an inspiration for budding woman entrepreneurs…women empowerment…views on entrepreneurship.
    StartupTalkyShubham Kumar

    Anjali Bansal

    Anjali Bansal - Women Investors in India
    Anjali Bansal – Women Investors in India

    The founder and chairperson of the climate-focused venture capital firm Avaana Capital, Anjali is heavily active in Indian startups. Avaana has funded agritech platform FarMart, electric mobility startup Kazam, and HR tech unicorn Darwinbox.

    Her firm has also closed its early-stage funding called Avaana Climate and Sustainability Fund at $135M in 2024. Anjali has also invested in multiple startups such as Nykaa, Delhivery, and Urban Company. She is also in multiple Indian brands such as Nestle India, Tata Power, and Piramal Enterprises. 

    Anjali Sosale

    Anjali Sosale - Women Investors in India
    Anjali Sosale – Women Investors in India

    Anjali Sosale is a partner at Waterbridge Ventures and plays an important role in shaping the success of early tech companies for the VC firm. She wants to support the next wave of rural Indian internet users by focusing on consumer tech, marketplaces, and eCommerce.

    Anjali is also active in multiple startups like BitClass, BigFatPhoenix, Yellow Metal, and EloElo. Previously, Anjali was a senior director at Jabong and oversaw the brand-accelerating program at Myntra. 

    Archana Jahagirdar

    Archana Jahagirdar - Women Investors in India
    Archana Jahagirdar – Women Investors in India

    Archana is the founder and managing partner of Rukam Capital. She is one of the few women general partners in Venture Capital but not only in India but across the globe.

    She has invested in over 18 startups in areas such as Go Desi, Sleepy Owl, Curefoods, BECO, Pilgrim, Yoho, and more. She has been nominated to the National Startup Advisory Council (NSAC) because of her contributions to the startup landscape.

    Previously, she headed brands like Espace Corporate, Textron, and Angelworks and even worked as a journalist with major brands like The Times of India and Business Standard.   

    Debjani Ghosh

    Debjani Ghosh - Women Investors in India
    Debjani Ghosh – Women Investors in India

    Debjani is the president of NASSCOM, the industry representing IT-BPM space. She has an experience of over 3 decades and has also worked with Yes Bank and Intel Corporation. With an MBA from S.P. Jain Institute of Management and Research, she is also on Cisco’s Indian Advisory Board and an advisor to the FICCI S&T/Innovation Committee. 

    Ishani Chanana

    Ishani Chanana - Women Investors in India
    Ishani Chanana – Women Investors in India

    Ishani is a partner of investments at Sarcha Advisors and manages family office investments and shapes capital allocation strategies across multiple spectrums such as debt, equity, and other investment options.

    She has invested in over 60 startups such as Josh Talks, The New Shop, BluSmart, STAGEm Prescinto, TrulyMadly, and more, to the extent that she is considered an entrepreneur talent nurturer. Additionally, she is also an angel investor and has stakes in startups such as BatX Energies, JumpingMinds, Newmi, Yatrikart, and Jobsgaar. 

    Kanika Mayar

    Kanika Mayar - Women Investors in India
    Kanika Mayar – Women Investors in India

    Kanika is a partner of Vertex Ventures that infuses money into Series B-stage startups across Southeast Asia and India.

    Some companies she has invested in are Patsnap, Garb, FirstCry, Nium, 17Live, Validus, AsianParent, and Warung Pintar. So far, she has taken part in four startups – Proactive for Her, Chatty Bao, Karkhana.io and Onato. She has worked with multiple brands such as Ernst & Young, IFC, Goldman Sachs, and TechnoServe.  

    Namita Thapar

    Namita Thapar - Women Investors in India
    Namita Thapar – Women Investors in India

    Namita is the executive director of India Business for Emcure, a pharma company. She rose to fame after joining the TV show ‘Shark Tank India’ as an investor. So far she has invested in over 80 startups such as Perfora, SUGAR Cosmetics, Snitch, Sahayatha, Janitri, and more. 

    Success Story of Namita Thapar: Biography | Achievements
    Namita Thapar is a well-known name when we examine the rise of women in business in India. Discover more about Namita’s net worth, investments, education, and more.
    StartupTalkySarika Anand

    Ankita Vasishta

    Ankita Vasishta - Women Investors in India
    Ankita Vasishta – Women Investors in India

    This Bengaluru-based angel investor is indeed an inspiration to all aspiring women investors in the country. Ankita is the founder and CEO of Saha Fund which she started with Usha Amin. She is also the founder and Managing Director of StrongHer. Her VC firm StrongHer ventures is conquering milestone after milestone in funding startups of different industries like fintech, consumer, health care and so on.

    Recently, under her leadership, the firm floated $100 million dollar specifically for women-funded startups. They aspire to be a billion-dollar venture fund platform that would be the largest of its kind for women globally. While it caters to women entrepreneurs in India and US, they are soon going to expand its base across Europe, Latin America, the Middle East and North Africa.

    Vani Kola

    Vani Kola - Women Investors in India
    Vani Kola – Women Investors in India

    She is a venture capitalist from Hyderabad. Vani is the founder of an early Indian Venture Capitalist firm called Kalaari Capital. After finishing her engineering in India, she went to the United States of America to pursue her successful career as an entrepreneur in Silicon Valley. When she came back to India in 2006, she observed the growing opportunity in the realm of investments.

    Vaani Kola, along with Vinod Dham founded Indo-US Venture Partners in 2006. It was through New Enterprise Associates that she had her first Indian undertaking in the year 2012. They later rebranded it as Kalaari Capital. At Kalaari, she promotes budding founders to develop useful products and solutions. She has made investments in startups like Zivame, Myntra, Curefit, Active, Apps Daily, Dream 11 etc.

    Padmaja Ruparel

    Padmaja Ruparel - Women Investors in India
    Padmaja Ruparel – Women Investors in India

    She is the co-founder and the president of the Indian Angel Network which has transformed into a global institution under her leadership. Today, IAN has made investments in over 10 countries with more than 400 investors. It is one of the largest seed and early-stage investing platforms in India. Today, the market value of all the companies bred by IAN will add up to four billion US dollars. Through IAN, she has made very diverse and dynamic investments in fields ranging from, finance, agriculture, SAAS, and D2C to the space sector, manufacturing technology, biotechnology, pharmaceuticals and medical devices.

    She is determined to improve the startup ecosystem in India. She was recognised as the “Most Powerful Woman” by Fortune India for four years. The Women Economic Forum has also acknowledged her contribution by awarding her their “Women of the Decade in Investment Banking” award.

    Get Actionable Tips to Successfully Raise Funds for Your Start-up 

    A 5-Day Crash Course for individuals wishing to find investment for their start-up dream

    Reserve Your Seat

    Bharati Jacob

    Bharati Jacob - Women Investors in India
    Bharati Jacob – Women Investors in India

    With a formidable reputation in the realm of investments, Bharati Jacob is a popular name in the field. Her commendable experience in venture investing and finance marketing, which is on the run after completing 2 decades, shapes her vision which makes her one of the most efficient female investors in the country.

    She is the co-founder and also the managing partner at Seedfund advisors which is a venture capitalist firm, based in Bengaluru. She started her investment venture in 2000. Today, her firm provides stark support to newcomers by helping them hold their ground. Additionally, the company helps them with networking as well. She has made investments in companies like Vaatsalya, Redbus, Sportskeeda, Edusports, Axisrooms etc.

    Top 53 Successful Women Entrepreneurs In India 2025
    Women entrepreneurship is growing at a fast pace in India. Here is a list of the top 53 Successful Women Entrepreneurs In India in 2025.
    StartupTalkySakshi Jadhav

    Nita Mirchandani

    Nita Mirchandani - Women Investors in India
    Nita Mirchandani – Women Investors in India

    Being one of the first female venture capitalists in India, she has an experience of over 30 years in the market. She is the founder of Kae Capital, which is a venture capitalist firm that primarily focuses on early-stage companies that bring in efficient and relevant solutions to the existing problems in the market.

    Apart from that, the company also helps startups with their operational, strategic and financial issues. At Kae Capital, she is the director of Finances and legal matters. She is also an active angel investor with investments in various fast-growing startups like InMobi, Innovcare, Squadron and iGenetics.

    Sakshi Chopra

    Sakshi Chopra - Women Investors in India
    Sakshi Chopra – Women Investors in India

    She is the Managing Director at Sequoia Capital. She has launched a new programme at Sequoia wherein she will select 15 women founders and grant them a no-strings-attached sum of $100,000 along with a mentorship program and network expertise that lasts a year. Based in Mumbai, her primary areas of investment are Consumer Products and Services which has led her to invest in startups like Ladies Who Lead and Purple.

    Bala Deshpande

    Bala Deshpande - Women Investors in India
    Bala Deshpande – Women Investors in India

    Another prominent women investor in India is Bala Deshpande. At present, she heads the India operation for NEA (New Enterprise Associates), the US-based investing firm as its Senior Managing Director. She is an alumna of the University of Mumbai, where she completed her post-graduate degree in Economics. Bala has also got a master’s degree in Management Studies from the Jamnalal Bajaj Institute of Management Studies.

    She has great private equity experience where she has seen young companies nurturing, buybacks, capital market divestments, and more. Her investment portfolio includes names like Air Works, Panacea Medical, MediSys, Naaptol, Nova, GreytHR and Intelligence Node.

    Grow your business using WhatsApp

    • Broadcast Promotional Offers to Unlimited Users
    • Automate Messages via Integrations
    • Enable Multi-Agent Live Chat for Customer Support
    • Install A.I. Chatbots and be available 24 x 7

    Start your 14-Day FREE Trial

    Conclusion

    It is a fact that gender disparity exists when it comes to women investors in India. A study by an online wealth management platform revealed that only one out of five investors in India are women. A lack of awareness, expertise and access to relevant tools can be the reason why women fall back into this realm. However, the shining examples of the above-mentioned women investors from India are a great inspiration to all the women out there who would like to try their hand at investment.

    FAQs

    Who are the largest investors of FDI in India?

    The largest investors of FDI in India are Singapore with an equity inflow of 27%, followed by the USA with 21% and Mauritius with 16% equity inflows in FY22.

    Who is the youngest stock trader?

    Lauren Simmons is the youngest stock trader. She did a crash course on the financial world and became a full-time stock trader at the mere age of 22 years at the New York Stock Exchange.

    How many women invest in mutual funds in India?

    There are 5.9 million women investors having 14 million folios and assets, as per the ‘Women Power in Mutual Funds’ report released by RTA (Registrar and Transfer Agent).

    Who are women investors in India?

    Some of the most popular women investors in India are:

    • Padmaja Ruparel
    • Bharati Jacob
    • Ankita Vasishta
    • Nita Mirchandani
    • Vaani Kola

  • 10 Skills Investors look for in an Entrepreneur | How to impress an Investor?

    The internet along with modern technology has seen a boom in the past decade. It has stimulated a lot of young people to turn into entrepreneurs by crafting their unique business ideas. The 2021 Entrepreneurial Spirit Index published by IPSOS shows 29% of Generation Z ranked as having a very high entrepreneurial spirit, compared to 36% of Millennials, 33 % of Generation X, and 25% of Baby Boomers. As of 2022, there are reportedly 582 million entrepreneurs worldwide. This growth has encouraged more people and companies to become investors.

    The business you start might have huge market potential. But, for it to reach a wider market and attain success beyond the geographical limit, it needs constant financial support. This financial aid is offered by Investors and VCs who are always choosy about their investments. Investors expect certain qualities from entrepreneurs before they decide to invest. So, what are they? What are the qualities that an investor looks for in an entrepreneur? Let’s see.

    10 Skills Investors look for in an Entrepreneur

    How to attract investors?

    10 Skills Investors look for in an Entrepreneur

    Here are some of the entrepreneurial skills to impress an investor.

    In-depth Business Knowledge

    Pitching your business plan to investors requires inside-out knowledge of your business and its market. An excellent idea portrayed with poor business knowledge can be fatal. Moreover, the confidence with which you approach the investor has a direct effect on the funding. In-depth business knowledge gives you that confidence.

    Before preparing your presentation for investors, gain clear knowledge about the scope and problems of your business and market. Construct a plan to solve those problems. You can gain that by interacting with your prospective customers and other market experts. Look for the questions, criticisms, and suggestions that the investor might toss at you. Be prepared for such things so you can provide a satisfactory response.

    Team Building Skills

    Many investors prefer to invest in businesses that have a good team. As Will Herman, a popular Angel Investor himself said, he believes in a founder who has a good team. It includes not only the co-founders but also the management team as a whole.

    Every person can’t be an expert in all aspects of the business. So experiencing yourself in what you’re good at and building a team for other aspects can gain you a positive note from investors. Even an average business idea can be executed exceptionally through a good team. If you’re desperate about getting the investor’s concern, then knock on their doors with a competitive squad.

    Precision in Fund Requirements

    Being clear about the amount required and the ways of utilizing them is a significant factor seen by Investors. Opting for an open-ended request for funds shows your lack of business awareness. Get to know the market well and be as accurate as possible in your need for funds.

    Determining the channel of fund flow is another important and challenging factor. You need to be more specific to the investors regarding what ways their money will be utilized. It could be for customer acquisition, product development, or anything. Pitch them with specific numbers to gain their interest.

    How to Approach Investors for Funding for your Startup
    Today, startups are increasing daily, and to fund them, investors have to be very speculative. You can approach investors in different ways to get funding.
    StartupTalkyAishani Biswas

    Communication Skills

    The primary quality of a good entrepreneur is his Communication skills. The success of a business depends on the coordination between various departments, teams, and stakeholders. All these can be successfully bridged through effective communication by the entrepreneur.

    Therefore investors expect entrepreneurs to be good communicators for effectively managing the business. This will be keenly observed during your pitching. Now, what makes one a good communicator? Deep knowledge develops confidence and this, in turn, grooms you to be a good communicator.

    Passion towards Business

    Create a vision for your business and develop a sense of passion while running towards it. The more passionate you are, the more determined you’ll be towards achieving your goal. The path to success in business will be loaded with ups and downs. How you overcome it depends on how passionate you are about your vision. Investors look for such dedicated and vision-driven entrepreneurs to invest their money.

    Organizational and Leadership Skills

    The success of the business depends on the way it is organized and managed. Coordinating teams, assigning appropriate tasks, and motivating them towards the company’s goals are some of the functions that come under organizational and leadership skills. A leader inspires his employees directly. Therefore, this skill becomes essential for the success of a business. Due to its impact on their investment, investors expect this quality in you during pitching.

    Adaptability and Learning Skills

    An entrepreneur should always be open to learning and suggestions. Adapting to the constantly changing market is a crucial skill that an entrepreneur should possess. It keeps you alive in the face of a competitive market.

    Experienced investors may provide you with advice regarding the business. Even some people you meet, customers, or your failures might teach you something. You must keep yourself open to such learnings. Failing to look around and close yourself off might land you and your business in trouble.

    List of Angel Investors in Bangalore [With Contact]
    Find the best angel investor for your startup from this list of Angel Investors in Bangalore. Know about their contact & interest in investments.
    StartupTalkyLakshya Singh

    Problem Solving Skills

    Every entrepreneur must possess problem-solving skills to deal with day-to-day business challenges. Problem-solving is a combination of various other skills like analytical and critical thinking. It starts from identifying a problem and may involve taking complex decisions for business growth. You can develop this skill by going through various case studies of organizations and thinking from their perspective.

    Strategic and Critical Thinking Skills

    Strategic and critical thinking becomes essential for the overall development of entrepreneurial skills. You should be able to foresee problems from various perspectives to arrive at the best solution. Critical thinking becomes essential for making strategic business decisions.

    Developing the skill of thinking strategically and critically would help you out beat your competitors and expand your market reach.

    Marketing Ability

    Communication skills will help not only to sell your ideas to investors but also your products to customers. This requires a clear understanding of customers’ needs and preferences, your competitors, market conditions, and other external factors. Investors look for your team’s ability to convince a person and make them buy your product or service.

    Easy Ways To Find An Investor For Your Startup Company
    How to find investors in India? How to find investors to start a business? Let’s look at some ways to find an investor. We’ve listed some easy ways to find an investor for your startup company.
    StartupTalkyYash Gupta

    Conclusion

    Investors believe more in you than your business plan or products. Their investment depends on the value of trust you offered them. Trust can be built from possessing a combination of various skills mentioned here. Gaining as many skills as possible is always an added advantage to you and your business.

    FAQs

    What are the 10 Entrepreneurial skills?

    10 important entrepreneurial skills an investor looks for in an entrepreneur are:

    • In-depth Business Knowledge
    • Team Building Skills
    • Precision in Fund Requirements
    • Communication Skills
    • Passion towards Business
    • Organizational and Leadership Skills
    • Adaptability and Learning Skills
    • Problem Solving Skills
    • Strategic and Critical Thinking Skills
    • Marketing Ability

    Who are the top angel investors in India?

    Some of the Top angel Investors in India are:

    • Rajan Anandan
    • Mohandas Pai
    • Ratan Tata
    • Anand Chandrasekaran
    • Anupam Mittal
    • Kunal Shah
    • Dheeraj Jain
    • Gokul Rajaram
    • Amit Somani
    • Vijay Shekhar Sharma

  • Rohit Kapoor: The Newly Appointed CEO of Swiggy & Former CMO of OYO

    The hospitality sectors without a doubt are a huge industry offering an amazing range of challenges and excellent roles if one is thinking to start a career in this sector. Thanks to the boom in the economy and a sizeable population with standard income, this industry is growing immediately.

    Speaking about the sector, OYO, the Indian multinational hospitality chain that has services in hotels, homes, and living spaces is one such example.

    Rohit Kapoor was the former CEO of the India & South Asia business across Hotels, LIFE & Workspaces at OYO. He is the man behind the success of OYO in expanding not only in India but also across international markets. He is the reason for driving the new real estate business for OYO by exploring new territories, strategic partnerships, and investment opportunities.

    Currently, Rohit Kapoor is serving his notice period at OYO and is soon going to head the food delivery business, Swiggy. Rohit Kapoor worked at OYO for almost four years. As per sources, he is very likely to join Swiggy if there are no last-minute changes. This decision came into effect after former COO Vivek Sundar left Swiggy.

    To learn about his life and bio, read through this article to know how he led OYO into the global market.

    Rohit Kapoor – Biography

    Name Rohit Kapoor
    Nationality Indian
    Education Indian School of Business
    Position CEO of Food Delivery Business of Swiggy

    Rohit Kapoor – Personal Life
    Rohit Kapoor – Career
    Rohit Kapoor – Journey So Far
    Rohit Kapoor – Investments
    Rohit Kapoor – Awards & Achievements
    Rohit Kapoor – Unknown Facts

    Rohit Kapoor – Early Life

    Rohit Kapoor earned a PGD from the Indian School of Business, where he placed among the top five students in his class and won the Young Leader Award for having the greatest overall grade in 2006.

    During his graduation time, Rohit has also been engaged in several activities and won achievements like the Torchbearer award for helping brand building for the school and winning the Merit List for core terms.

    Before this, he also studied CFA institute (Charter, Investments, and Securities) from 2001 – 2004

    The book “ISB Portraits” recently included Rohit Kapoor as one of ISB’s most important graduates.

    Besides being an academic scholar, Rohit loves to travel and has a passion for photography.

    Rohit Kapoor – Career

    Rohit Kapoor is a true leader who has about 20 years of experience in leading many companies. Rohit spent over ten years as a consultant with McKinsey & Company before joining OYO. He experienced a wide range of international marketplaces while working at McKinsey.

    Additionally, Max One Distribution, Crossley Remedies, and Antara Senior Living all have Rohit on their boards.

    Rohit Kapoor – Journey So Far

    Rohit Kapoor is now all set to guide one of the leading food delivery enterprises, Swiggy. After serving the hospitality unicorn for 3.6 years, Kapoor announced his resignation.

    He joined the Gurugram-based firm, OYO in December 2018 as the new real estate company’s chief executive officer (CEO), and was promoted to that position a year later to become the Global Chief Marketing Officer of India and South Asia.

    Reports suggest Rohit Kapoor will be in charge of expanding Swiggy’s meal delivery services in his new position.

    In addition, the startup’s organisational structure has been altered. The reason for the change was that it started they were strong but subsequently lost market share to meal delivery rival, Zomato. Swiggy hasn’t debuted on the stock market yet, but Zomato did so last year.

    According to Rohit, the young people of today need more than simply sitting in a room of four walls. They want accommodations with higher levels of comfort and luxuries so they may enjoy life more and pursue their passions without worrying about regular daily-life problems.

    This is what led him to create co-living spaces that will suit young people and students in today’s times. These spaces will give them the freedom to do whatever while reducing the headaches associated with brokers, properties with few or no amenities, maintenance fees, housekeeping services, security deposits, and other such issues that cost them extra bucks.

    Rohit Kapoor – Investments

    Rohit Kapoor is the angel investor at OFB Tech Pvt. Ltd. [Ofbusiness]. It is a technology-driven financing platform for SMEs.

    Rohit Kapoor – Awards & Achievements

    The following are some of the awards Rohit Kapoor has won:

    • Merit List for core terms.
    • Came 4th out of 349 on the Dean’s List.
    • Featured in the ISB Portraits for being one of the talented graduates.

    Rohit Kapoor – Unknown Facts

    Few interesting facts about Rohit Kapoor

    • He cycled from Manali to Leh in 2018.
    • He loves travelling and photography.
    • He loves designing.

    FAQs

    Who is Rohit Kapoor?

    Rohit Kapoor is currently CEO of Swiggy for its food delivery business and formerly was the Chief Marketing Officer of OYO.

    What was the previous role of Rohit Kapoor?

    Rohit Kapoor was the Chief Marketing Officer of OYO.

  • Dual Class Shares – What is it, Advantages, Disadvantages, Examples and More

    What is one common thing among the founders of famous companies like Google, Ford and Facebook that allows them to have complete control over the decision-making of their companies? The answer to this question is dual-class shares.

    I know you are very confused about what dual-class shares are and what advantages and disadvantages they offer to the founders. Don’t worry I will explain to you about dual-class voting shares in great detail without technical jargon. We will also talk about companies with dual-class stock structures.

    What are Dual-Class Voting Shares?
    Why Dual-Class Voting Shares are Used?
    Famous Examples of Companies That Use Dual Class Structure
    Advantages of Dual Class Shares
    Disadvantages of Dual Class Shares

    What are Dual-Class Voting Shares?

    In dual-class shares, the founders own a small portion of the company’s total stock but they have the maximum voting power. For example, a company may issue class A and class B shares. Both these shares may have different voting power and dividend payments.

    In this scenario, class A shares which have limited or no voting rights are offered to the general public while class B shares which have the maximum voting power are offered to the founders, executives, and family.

    Why Dual-Class Voting Shares are Used?

    Founders who want to enter the public equity markets for financing but want to gain full control over their company opt for dual-class stocks. Using this strategy founders can focus on their long-term vision. They don’t have to worry about their investors who just want profits.

    Famous Examples of Companies That Use Dual Class Structure

    Google

    Alphabet subsidiary Google issued two classes of shares in 2004. Here, class A was offered to the general public which carried one vote per share. Although Class B which was offered to the founders carried 10 votes. Later, the company issued class C shares that had zero voting rights.

    Ford

    The Ford family has also issued two classes of shares: Class A and Class B. The family owns the class B shares which gives them 40% of voting power with just 5.0% of the total equity in the company.

    Facebook

    Facebook also follows a dual-class common stock structure. Mark Zuckerberg and his close executives possess class B shares which carry 10 votes. Zuckerberg owns 75% of class B shares which allows him to control 58% of Facebook’s votes.

    Advantages of Dual Class Shares

    • The biggest advantage of dual-class voting shares is that the founders have complete control over the decision-making and functioning of the company.
    • The company can still get public financing without worrying about giving too much voting power to its investors.
    • Founders can focus on long-term growth. It protects the company from investors who only want to gain profits.

    Disadvantages of Dual Class Shares

    • Dual-class voting shares give unfair voting rights to their investors.
    • Super voting rights in the hands of the founders and executives weaken the structure of the company.
    • The structure of the company cannot be easily transformed into a single class.
    • A study from the National Bureau of Economic Research provided strong evidence that the company which follow a dual-class structure face more debt than single-class shares.
    • Shareholders can make bad decisions with few consequences.

    Conclusion

    As you can see dual-class voting shares allow the founders and insiders of the company to have complete control over the company with limited shares.

    Almost every other founder wants to focus on the company’s long-term goals and doesn’t want to allow investors to control the decision-making of the company. That’s why well-known founders are implementing a dual-class structure in their respective companies.

    Although dual-class voting shares do have their own cons. The founders and investors should understand the benefits and consequences of dual-class voting shares.

    FAQs

    What is a dual-class share?

    In a dual-class stock structure, a company issues two classes of shares: Class A and Class B where one of the shares have more voting rights than the other one. For example, class A shares which are offered to the general public have one vote per share. While class B shares which are offered to the founders and insiders of the company can have 10 voting rights.

    What are the benefits of Dual-class shares?

    Since the founders have higher voting rights with a limited amount of stock they can have complete control over the decision-making of the company. They can focus on long-term goals. This protects the company investors who only aim to make profits.

    Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?

    No, it is not unfair to issue stock with unequal voting right since the company before issuing its shares tells the general public and investors that they will be following the dual-class structure. Investors know all the terms and conditions and are under no obligation to buy the shares.

  • What Do Investors Look For Before Investing in Startups?

    The article is contributed by Mrs. Deepti Sharma, Managing Director, Thinker Place.

    Investors are always on the lookout for ideas that are unique and can be of use in whatever sector they are being pitched in. Every idea, irrespective of what the idea contains, can be a great idea depending on the pitching method and the solutions/interactiveness that the idea has with its target audience. Ultimately, it all boils down to the product that you have and the potential – whether prominent or hidden, it contains.

    From personal experience, investors always want a thorough breakdown of potential products they are going to invest in. The standard breakdown questions by investors include the following:

    1. What is your idea/product? – A question to check what made you come up with the product and to know the root of development and the thinking process behind developing something.
    2. How does it help? – Products are made for consumers. Investors look for your target audience and the functionality of your product through this question. Products/ideas that provide immediate solutions or benefits to the target audience are ranked higher for investors.
    3. What does it do? – A trick question by investors to know the end-to-end process of a product. This is a critical question where investors check the development state of a product and make decisions on the amount to be invested.
    4. Materials used in the product – Investors today are always on the lookout for sustainability. The materials used in a product give investors a judgment on the cost of making a raw product and can help them determine the selling price. As an entrepreneur, this is also a key moment to display hidden trinkets and other special features that your product may hold.
    5. The “Units Sold” question – After the idea and the products have been pitched, investors ask about the market trend and public reaction to the product. This is a statistical question that is answered purely in numbers, raw data, and through a variety of content.
    6. Additional cost questions – The “make or break” question while pitching. Cost questions by investors look at individual raw material costs, production costs, the team’s cost, and most importantly – sales and marketing costs.

    PRODUCT IS KEY. There is no other way around it. Taking an idea and perfecting it to near-perfection is what all entrepreneurs and business owners strive for. On an added note, investors fall head-over-heels for PR activities and recognition that a product or entrepreneur has received. In short, the more recognition or “brand awareness” that you or your product has, the better.

    As an entrepreneur, you are not only pitching for the idea and the product that you’ve worked so hard on, it is also a pitch for trust. Investors look at your convincing power, your confidence, your real-world knowledge, your market knowledge, and above all, how far you will go for your product.

    Why Investors Are Investigating Top Executives?
    Investors are conducting investigations on top executives of popular startups. Find out the reason behind that.
    StartupTalkyDamini Bhandary

    Statistically, most investors have already decided whether or not to invest in your startup business based on the first 5-10 minute interaction you’ve had with them.

    A quick guide to getting into the good books of investors:

    • Do your research – Knowing who you are pitching to, their background, their job profile and work history, what and who they’ve invested in previously, and any other details can help you in your pitch.
    • Dress to impress – There is no excuse for not looking professional. Think of it as a very important job interview. Though the new-found trend is to dress as one sees fit when attending business and pitch meetings, dressing in formal attire is a classic move that can never fail. Professional attire emits seriousness and intent and makes a lasting impression on investors.
    • Be confident – Pitch meetings can be nerve-wracking. Being anxious and nervous is a natural feeling for most anybody. Displaying what you’re feeling inside can leave a bad impression on your investors. From the moment you meet your investors, your confidence should be on full display. The way that you walk and the firmness of your handshake or head nod can assist you in showing confidence and seriousness.
    • Being organised – Before you start your pitch presentation, or before sharing your business module with investors, make sure to have all your documentation, gadgets, flashcards, products, and other necessary documents and items organised. One way investors know that you are not-so-serious about having them as investors is by being flimsy with documents and slow with setting up your presentation. For investors, time is of the essence, being organised always goes a long way in assisting your pitch presentation.
    • Portray yourself as the subject matter expert – The pitch for investment is all for you and your product, so it is only natural that you know thoroughly all about the origins of the product, where your product stands in the market, and the complete inside work of your business. Investors look for the devotion and near-obsession that entrepreneurs have when it comes to their products. This point answers the very important “Why should we invest in you?” question quite clearly.
    • Quick and logical thinking – Most of the time, based on data and other statistics that are provided to them, investors hunt to find defects or loopholes in your pitch. As such, they come up with scenarios or situations for the entrepreneur to answer. An entrepreneur should have quick and logical thinking based on real-world statistics about their product and should be able to answer all questions smoothly. Roleplaying different situations, and foreseeing or predicting the future of your product and the company is a sure way to answer most questions belonging to this category.
    • Negotiation skills – Lastly, but most importantly, entrepreneurs need to have a clear picture about what’s the purpose behind the investor pitch meeting. The skill to bargain and negotiate or “not settle” for something that’s outside the expected quotation is vital for success.

    Easy Ways To Find An Investor For Your Startup Company
    How to find investors in India? How to find investors to start a business? Let’s look at some ways to find an investor. We’ve listed some easy ways to find an investor for your startup company.
    StartupTalkyYash Gupta

    Conclusion

    To conclude, getting an investment is like a game of chess. Playing the right move at the right time to pique the interest of your investors and to keep them always occupied with you and your product is the key to a perfect pitch. What really matters is convincing investors to trust you and your product and to see the vision that you have. With the right attitude and confidence, getting investors on board is easy.

  • 10 Characteristics That Attract Investors to Invest in Your Startups

    The article is contributed by Mr. Saarthak Bakshi, Chief Executive Officer (CEO) of the International Fertility Centre.

    Mr. Saarthak Bakshi is recognized as Forbes 30 under 30 ASIA, 2017 for HealthCare and Science. He is known for his persona as an engineer, an entrepreneur and a social worker. He flourished his career by working with reputed companies – Infosys and Ernst & Young – as a Software Engineer and IT Risk and Assurance Analyst respectively. He soon realized that he has an inborn passion for entrepreneurship and went on to launch a slew of ventures including IFC.

    As we know that starting a business can be expensive. We may have less cash in hand to get started without some outside help but sometimes, it is important and beneficial to have investors in your business. It gives you a sort of security. Investors in your business are different from lenders. Instead of monthly repayment like lenders, investors give you money in exchange for ownership of part of your business. Apart from money they can also be an important source of business-related advice and strong business networks, which you can utilize for your own business. Therefore, it is important to draw the attention of the investors to make their decision firm to invest in your business. Most important thing is that investors want to see a return on their investment. They make money by putting their money into the growing business. Therefore, how to woo them plays a crucial role in the success of any startup. It is not necessary that every investor looks for the same things but still there are chances of commonality.

    So, here are ten points to make the investors interested in your startup.

    1. A passionate business proposal
    2. A market-oriented deal
    3. Demonstrate your success rate
    4. Competitive advantages
    5. Have an emotional approach with logic
    6. A strong team
    7. Experience
    8. The investment structures
    9. A scalable model
    10. Future vision and planning

    A passionate business proposal

    Having a passion for their startup is easy to be found in new business founders.  But how your business will help the investors to gain profit is a deciding factor for their interest. They want your confidence justifying that it is an improvement over existing products or is a new way to address an old problem. You should demonstrate your firm belief and confidence in your business.

    A market-oriented deal

    It is one of the important points that to pitch potential investors, familiarity with the market is generally the safest option. Startup investors look for opportunities in sectors that fit their interests and expertise. They already have an idea of how businesses become profitable in this industry and what it will take for your business to yield a return on its investment. Thereafter reviewing and organizing your proposal, go for the market research to pitch in a suitable investor.

    Demonstrate your success rate

    A track record of previous success is critical to attracting the interest of investors who can take your venture into your business. Most of the time successful startups are a rarity, therefore it becomes difficult for inexperienced entrepreneurs to convince the investors to lend their capital. But, if your business can captivate the market and the customers and if your track records give a guarantee of success, then you have a fair chance.

    Competitive advantages

    Most of the time investors look for satisfactory answers to the following question: What makes your product/service unique? There must be something about your product that sets it apart. If your product and you’re the first to the market, then it’s the best thing. However, most startups are entering existing marketplaces. What then makes you different? And how affordable it is in comparison to the already existing quality?

    Have an emotional approach with logic

    Whenever you are pitching with your investor, you must hit them on both emotional and business fronts. Include a story with your plan. Make it appeal to real-life scenarios and how your idea will solve the problem. At the end of the day, investors look for founders who have passion, motive, and experience to create a profitable as well as a sustainable business. It is not a matter of only ideas or concepts, the investors look to invest in you and your team and their ability to successfully execute your business plan.

    A strong team

    If you have a competent team, you have the attention of the investors. Show them that your team is intelligent, strategic, successful and follows strong financial discipline. Show them the qualifications of each member and what they bring to the business. Having a team that is knowledgeable, willing to learn and can handle multi-responsibilities are all positive traits that will impress your investors.

    Experience

    Experience can play a convincing role in winning over investors. If your team members have prior experience in their respective fields or have been involved with a startup in the past, it shows that you and your team have knowledge of your market and are tenacious enough to complete goals.

    The investment structures

    You should have a clear business structure in place that allows the investors to consider it and buy it. You should also plan for how the investment will work. In that plan, you must include, a clear valuation for your business and a stockholder’s agreement that clearly sets out the rights of all the owners.

    How Crowdfunding Works in India for Startups and Businesses?
    Crowdfunding is a great way to raise funds for your startup and small businesses. Want to know how it works and its benefits. Check out.
    StartupTalkyAshwini

    A scalable model

    Build your business with scalability in mind. Most investors expect a return on what they are investing. Therefore, scalability is a major factor for successful startups and a great attraction to investors. Basically, scaling is known as adding revenue at a rapid rate while adding resources incrementally. The amount of resources required doesn’t change as your customer base increases, driving consistent growth and improving profit margins. Therefore, the plan of your faster revenue, makes the investor consider your startup dearly.

    Future vision and planning

    Give your investors a picture of your potential startup, that is where your company will be in the future and make them optimistic that you have the credibility to achieve your goals. Plan along the lines of where is your startup going? How do you see your startup in the coming years? Do you plan for the worldwide market? Etc.

    Conclusion

    Attracting startup investors to your company is necessary for your business. Therefore, you must put all the pieces in place to show that partnering with your business would be a smart move for them. Highlight the best parts of your startup and discuss your challenges with them openly. Investors will get on board when you demonstrate your best.

  • Insights Into Investment Journey of an Angel Investor

    StartupTalky interviewed Kunal Chowdhry, Global Angel Investor to know about his investment mantras, investment methodology, and how he judges founders and startups to make an investment decision. Get insights into his journey of Investment in Startups.

    Tell us about your background and how you got to where you are today. What keeps you motivated at whatever you do?

    I was born in India and spent the formative years of my life in Singapore. I graduated from the University of Cambridge and returned to Singapore after completing my MBA at Harvard University. I have worked in both consulting and the financial services industries and now run Apollo Singapore Investments, a multi-asset-oriented family office. Apollo invests in a range of different asset classes including startups in India and South-East Asia, particularly SaaS companies in the areas of HR Technology and Blockchain.

    I come from an entrepreneurial family, with my father being one of the founders of the HCL group so I have lived and breathed the ups and downs of an entrepreneurial journey since I was young with exposure to new technologies as they were being developed.

    I am married with three kids – a girl and two boys. I love keeping abreast of new trends and enjoy interacting with young people because they generally have their pulse on the ground and are able to offer a fresh perspective. Keeping this in mind, I believe in a mentorship-based model of investment, whereby I make mentoring a key component of my investment methodology. I also mentor University kids from the perspective of both career and life advice and I have to say that I find them very inspiring. The desire to constantly learn and refresh myself intellectually is what truly motivates me. For example, I spent the first year of the pandemic educating myself about crypto, an area I knew nothing about previously. I am inspired by a number of entrepreneurs who started companies in areas of business they knew nothing about but were able to learn on the job and ended up creating products and services that changed the world. You don’t have to look beyond Elon Musk as an example of such a visionary.

    I am passionate about travelling and collecting art. My wife and I have travelled to almost 45 countries and we usually pick up art pieces/souvenirs which are representative of the country. One of my favourite pieces is a small statue made of lapis lazuli, which is emblematic of the large statues on Easter Island, Chile. I also love tennis and you can usually find me at a Grand Slam tournament with my daughter as she is also a fan of the sport. Thanks to my kids, I am also a big fan of K-pop and have seen BTS, EXO and Blackpink in concert!

    How did you start your professional journey and what do you do now?

    I started my career as a consultant with Accenture in London and even spent a year in Spain which has been one of the highlights of my life thus far! I love Madrid and even learned Spanish during my time there as my entire team was Spanish and I had no choice!! After graduating from Harvard, I moved to Singapore to work directly for the CEO of DBS Bank on special projects in Singapore and around South-East Asia.

    I now run my family office from Singapore. As a full-time investor, I am responsible for obtaining good returns from all our investments across a range of asset classes and geographies. This allows me to take a macro view. It feels great doing what I do because I simply love to join the dots between macro events, politics and their impact on investing.

    Share any story on a tough day at work and how you pushed through.

    A tough day for me would be waking up to see that my portfolio returns have dropped significantly due to a major market event. I am currently living through this as we speak, as the combination of war in Ukraine, high inflation globally and monetary tightening by central banks globally has made things really tenuous from the point of view of an investor.

    The one and the only thing to do in such a situation is to stay calm. It’s important as an investor to plan for contingencies but you can’t always plan for ‘black swan’ events such as Covid. While it’s important to stick to a plan, it is also imperative to be able to pivot should the key assumptions underlying your strategy turns out to be invalid in a new market scenario.

    If one day I wake up and be you, what are the things that I will do?

    If you were to one day wake up and be me, you might have a bit of a shock as I am usually woken up by 3 large Labradors every morning who seem to know when my alarm is just about to go off! I generally wake up at 7 am to see my kids off the school. I spend the next several hours reviewing global news and responding to emails and reviewing business pitches and investor updates. I work out at least 3-4 times a week before lunch and generally schedule meetings post-lunch until early evening. I tend not to work between 7-9 PM as I eat dinner with my family and enjoy putting my kids down to bed. Post-dinner, I spend a couple of hours on calls with Europe/US before unwinding by watching Netflix before bed!

    How and when did you start your Investing Journey?

    I am passionate about startups, given my entrepreneurial upbringing and always knew that I would be part of the startup ecosystem. I have worked as an intern in start-ups while I was an undergrad in the UK and also during my MBA in the US but I always felt that my forte lay in investing. I have been an angel investor since my late 20s so almost 15 years now! When the Indian Angel network was first founded, I had the opportunity to join and it ended up becoming my first exposure to the world of startup investing. Since then, I have invested in close to 50 start-ups in India and South-East Asia. I am always on the lookout for new business opportunities and most recently invested in a coffee cart business in London.

    What kind of startup do you invest in? Are you a sector or geographic agnostic? What is your typical investment horizon, return expectation, and timeline?

    I am always on the lookout for that one idea than fulfils the need of any big community as a whole. An idea that can better the lives of many because of its practicality or its use. I primarily focus on HR tech and blockchain start-ups. However, that said, I also invest in other industries such as FinTech, Consumer retail, Internet, and deep-tech analytics. My typical investment horizon would be 5-7 years. My return expectation is to always aim for 3-4 times my initial investment but that’s easier said than done as an early-stage seed investor!

    What is your investment mantra? Please share the metrics you track and why those are key according to you. What do you look for in a founder?

    My investment mantra is simple – know the founders’ purpose and understand their motivations. Also, it matters to me whether the business philosophy can be easily explained to any layperson. As such, I don’t tend to invest in overly complicated businesses such as biotech as I don’t have a background in this industry. I would, however, not be opposed to investing in a biotech fund, run by experts who understand the space well.

    I have five metrics that I usually go by:

    • customer growth
    • top-line revenue
    • core operating expenses/cash burn
    • runway
    • alignment with the founders’ strategic vision.

    What and how do you judge the Founding team before writing a cheque? What are the key challenges you face as an investor before you sign the cheque?

    I love founders who are confident, focused, clear, strategic, and yet versatile enough to turn things around or pivot when their ideas are not working. Not just the founders, but the founding team is also very important. I look at the entire team to examine the competencies of senior leadership. As such, I always insist on meeting not just the founder but also the entire team before making any investment decision.

    What are a few signs which make you trust a founder and find him/her Competent? What are the signs? How much does a degree from Tier I college matter?

    Education is not as important as vision. Education definitely opens the door, but at the end of the day, it’s the founder’ innate strengths and vision which carry the day.

    I love founders who put their own money into their start-ups, no matter how small the amount is. This shows that the founders believe in themselves, which is a key criterion for success in my book!

    What is a warning sign for you when investing in a startup?

    Some red flags would be inflated expectations of performance without evidence to back it up. For example, a financial projection of $100M in revenue by Year 3 when the company is making $100,000 in Y1! And yes, I have seen many pitches with these numbers!

    Important Tips you know before Investing in Startups
    Thinking about startup investment for the first time? Check out this post before investing in startups.
    StartupTalkyParnas Ghosh

    Apart from Investment, how do you help startups?

    I believe in a mentorship-based model of investment, where I meet with the founding team on a monthly basis to review key metrics and discuss strategic decisions. I have often been asked to help vet potential candidates for senior leadership positions in some of my portfolio companies. Also, I have developed a strong network over my two decades of professional experience so I am able to make connections and warm introductions to other investors, potential customers or even potential partners in other markets.

    Please share a couple of learnings which make your professional life easy and productive.

    Learning from experience, I find things are easier if we just go directly to the top and not waste time with middle management. For example, earlier in my career, I would try and connect to someone at my level in a company so as to “not go over anyone’s head”. However, I have since found out that decisions are rarely taken by anyone in middle management and sometimes the message just gets lost in translation.

    This is especially relevant in the Asian context, where words from senior management carry more weight and gain more attention. If you can get a message sent down by the CEO, you’d be amazed how quickly action is taken!

    Another life hack which I learned a long time ago is to just ask because the worst that can happen is that you will be told “no”. But if you never ask, the answer will always be “no”. I learned this as a teenager whenever I would ask the check-in manager at the airport for an upgrade from economy to business class. Most of the time it wouldn’t work, but I did end up having a success ratio of almost 20% which is pretty good, especially as one of them was on a 17-hour flight from Santiago to London! This is equally valid in the business world. e.g. asking for more time to pay or asking for an additional discount.

    When do you think it is the right time to raise investment for a startup?

    In my experience, the fund-raising runway takes about 6 to 9 months. The best time to raise funds is when you have at least one year’s of runway left. In my opinion, if you leave it too close, you may end up securing financing at too high a cost – in terms of interest, equity or even loss of control of your company.

    How can we support/ enable entrepreneurs in Tier II and Tier III cities?

    We are seeing more and more startups from Tier II/III cities but they need the right platform to showcase their capabilities. We can tap into our collective networks and link them up to investors, customers and markets not just in India, but across the world.

    Some specific actions that can be taken include:

    1. Mentoring the founders thereby enabling them to better their businesses
    2. Organising pitch sessions for the startups to market their ideas to VC and angel investors
    3. Working with Govt bodies and private foundations with a vested interest in entrepreneurship to private grants to startups.

    Top 10 Venture Capital firms in India | Active VC Firms in 2021
    VC investments are currently recorded at $14.4 bn. Here’s a list of Top 10 venture capital firms in India that actively invests in Indian startups
    StartupTalkySouvik Dey

    What are the things that can help the founder retain maximum equity while negotiating with an investor?

    I would suggest that in the early stages, particularly for seed rounds, founders should take investments in the form of convertible notes, rather than direct equity. This ensures that founders retain control for as long as possible, as usually in the later stages of funding, founders would have to give up a percentage of their equity stake.

    What is one thing you wish Indian founders and VCs understand which will make the Indian startup ecosystem a much better place for startups?

    I have seen inflated valuations in the ecosystem for some time, particularly in the last 5 years. Founders’ valuation expectations have become unrealistic. They are too eager to have a $ 20 million valuation based on 4 pages of a PowerPoint deck but there are insufficient revenue and customer numbers to back the valuation. I am of course referring to brand new startups which sometimes don’t even have an MVP (Minimal Viable Product) yet are asking for a $20 Million valuation!

    One learning that you would like to share with founders who are looking to raise funds?

    Raising funds in an economically volatile market is challenging. Investors are more cautious with where they put their funds and usually impose more stringent terms and conditions, compared to a bull market where financing is more readily available with fewer strings attached. Adverse economic conditions will have an impact on fund-raising initiatives. It not only takes longer but also entails several rounds of negotiations.

    What are a few sectors you think would be hot in the upcoming year?

    Web3 incorporating Metaverse, gaming and blockchain are some interesting sectors not only for the upcoming year but also for the next 3-5 years.

    How do you keep track of what you have to do? What are you currently reading, or what do you recommend?

    I like to stay abreast of current events because they provide crucial information for all my investment decisions. I read not only more traditional publications such as The Wall Street Journal, Financial Times and the Economist but also spend a lot of time on Twitter as it gives me access to information across a range of my areas of interest – from crypto analyst research to movie box office numbers, from macro data on the economy to the latest events in sports. I truly believe that the world of investing is very interconnected with lessons that can be drawn from a range of industries. And sometimes, it’s fascinating to realise that hype doesn’t always result in good business performance. Take a look at Netflix for example – just 8 months ago or so, everyone was talking about the TV show “Squid Game” and how it was proof that Netflix’s high-cost content acquisition strategy was working. But here we are a few months later and the share price is down 70%.

  • Tips For Investing in Startups to Kickstart Your Angel Investing Journey

    The article is contributed by Mitesh Shah, Co-Founder, Inflection Point Ventures.

    Start-up investing is an emerging and rewarding asset class. While many people are now starting to consider investing in startups, the initial journey can seem daunting and hard to navigate.

    If you are someone who is looking to kickstart your angel investing journey, here are some tips that could help:

    Tips for First-Time Investors

    Develop a personal investment thesis

    As an angel investor, you should work with a personal investment thesis. This thesis will help you identify the sectors and the kind of startups you would want to invest in. In this thesis, try to cover the following topics:

    • A range on how much you are willing to invest in startups.
    • What is your focus – impact generation or seeking substantial returns.
    • Identify sectors you are not comfortable investing in. For example, many angel investors who don’t support tobacco or alcohol consumption, do not invest in start-ups in those sectors.

    Do your research and think about it from the perspective of building a portfolio

    Once you have made up your mind about start-up investing, the first thing is to do is identify the right startups. Like most investments, it is imperative to do thorough research before investing in a startup. You can begin with identifying certain sectors that interest you or you can choose to be sector agnostic, but what is imperative is that you develop an understanding of the business, team and market before investing.

    Target opportunities that are scalable

    When looking for successful ideas to invest in, scalability becomes an important parameter to look at. Understand how large a problem they are solving; how many people will be able to adapt and benefit from the solution, what is their total addressable market size, how is the larger industry growing, etc.

    Deep dive into the team

    A startup idea is only as strong as the team that is going to execute it. So, when you come across an idea that excites you, gather confidence in not the founder/s but also the team at large. And how the founders plan to expand this team and hire good resources. At times people consider good pedigree – an IIT/IIM degree to be a good enough indicator of the founder’s abilities; this although might not be the best parameter at times so you may avoid following that convention.

    If it’s a tech-driven business do your tech research and validation rigorously. If needed, seek advice from experts. Pay close attention to how they aim to build that tech and the timelines they are working with.

    Don’t judge founders by their past failures

    Don’t go in with biases. Failed entrepreneurs come with a great degree for experience and understating of “what not to do”. Research suggests the learning process of opening and closing a business increases the chances of success.

    List Of Government Schemes for Startups in India
    The Indian government is doing a lot to encourage and promote entrepreneurship. This StartupTalky post discusses some of the schemes launched to support Indian startups.
    StartupTalkyAshwini

    Invest in what you know

    To begin your angel investing journey, it may be beneficial to start with industries and sectors that you are already familiar with or have some experience in. It positions you to better evaluate the start-ups when you are just starting out.

    Invest your time, knowledge and connects

    It ties into the previous point about investing in sectors you are familiar with because angel investing is about a lot more than just investing money. As an angel you can bring to the table your experience and expertise that’ll help the start-up grow. At early stages, guidance and connects are as important to a start-up as money is.

    Invest with others/ Seek advice from others

    Start-up investing is a risky asset class, and when you are just starting out, it might be difficult to get everything right on your own. Try investing with other investors, either through privately formed niche groups or through angel investing platforms. Other like-minded angel investors will not only help you evaluate your investment decisions but also help you learn more about the ecosystem and further identify potential investment opportunities.

    Be prepared to invest for a long term

    As an angel investor you will most likely invest in a start-up at a very early stage. At times startups can take some time to reach a scale wherein you get substantial returns on your investment. So be prepared to have the money invested into the startup for a long time and be patient till the start-up reaches its full potential.

    Consider your exit opportunities at the time of investing

    While making a decision to invest, it is also important to consider what your potential exit options will be. There are multiple ways to get an exit – follow-on rounds by VCs, M&As, IPOs etc. Undeniably, at the end of the day, your success as an angel investor is defined by the returns you are able to generate and the experience you have gathered.

    Paperwork and legalities

    A term-sheet defines the framework of your investment agreement with the startup. While it is a non-binding document, it is still important to make sure you have carefully considered all the terms mentioned in it. You need to know that you have the right to negotiate the terms if they don’t suit you. In the beginning, it is advised to take inputs from more seasoned investors or SMEs (Subject Matter Experts) when negotiating the terms. The important points to consider in the term-sheet are:

    • Valuation of a company & ownership percentages
    • Investor Rights
    • Payment of Dividend
    • Liquidation Preference
    • Types of Shares offered
    • Dilution/Anti-Dilution

    Then comes the SHA – Share Holder’s Agreement. SHA is a legally binding document upon the investor and the company, and a precisely drawn term-sheet would help ensure that there are no sudden disturbances due to miscommunication while signing the SHA.

    Conclusion

    Overall, while navigating start-up investing can seem difficult in the beginning, access to right information and a like-minded community of investors can definitely make it an enriching journey. Joining an angel investment platform can help you get access to good startups, diverse network of experienced investors and help with legal documentation. This will enable you focus your time and attention towards finding the right startups for your portfolio, where you can contribute not only dry powder, but your time and professional experience as well.

  • List of Startups Funded by Dr Ritesh Malik

    Dr Ritesh Malik is an Indian doctor, entrepreneur, and investor born on 14 June 1989. He is currently investing and mentoring 11 startups in varying industries. Malik’s decision to support investors instead of remaining in a medical profession shaped his life interestingly. The main reason behind his decision was that while he could reach 100 patients a day as a doctor, leveraging technology can help him reach at least 100 million in a day.

    The key areas of interest for Dr Malik are entrepreneurship development in India, co-working, angel investment, healthcare, education, and inspiration. The well-known co-working space Innov8 was founded by Dr Malik himself. Currently, Dr Ritesh Malik is the Founder & Trustee at Plaksha, a mission aimed to teach not just technology but life skills, self-awareness, curiosity, and the ability to think creatively and carefully. Over the years, he has invested in several startups, here are some of the top startups funded by Ritesh Malik.

    Invact Metaversity
    Hypd
    Praan
    Shyft
    CatalyzeX
    Bimaplan
    Supersourcing
    Bitespeed
    Trulymadly
    inFeedo
    Fin Robotics
    Adstuck Consulting
    Project Guerrilla

    Invact Metaversity

    Invact Metaversity Logo
    Invact Metaversity Logo

    Invact Metaversity is a startup founded by Manish Maheshwari. The aim behind the startup is to create a virtual university town with multiple colleges. Dr Ritesh Malik invested $5 million in Invact Metaversity on 7 February 2022.

    Hypd

    Hypd Logo
    Hypd Logo

    Hypd is a creator-driven marketplace that classifies itself as a Shopify for creators, allows creators to set up online stores that coincide with their content. Dr Malik invested ₹110 million in Hypd Marketing Technologies Private Limited on 24 January 2022.

    Praan

    Praan Logo
    Praan Logo

    Praan is a deep-tech startup aimed at renewable energy semiconductor manufacturing. The startup uses breakthrough patent-pending technology for filter-less capture of carbon dioxide and particulates from ambient air. Being an environmentally – conscious person, Malik took great interest in the venture, thereby investing $2 million in the Pre Seed Round held on 12 January 2022.

    Shyft

    Shyft Logo
    Shyft Logo

    Shyft is a startup venture that serves as a one-stop mobile employee optimization solution for hourly workers. With features in prestigious magazines like the Wall Street Journal, The Seattle Times, The Boston Globe, and Fox Business News, Shyft has attracted investors from several backgrounds. One such investor is Ritesh Malik who invested in the startup in its seed round on 19 November 2021. He invested a sum of ₹450 million.

    CatalyzeX

    CataylzeX Logo
    CataylzeX Logo

    CataylzeX is an Internet publishing startup firm situated in California, USA. Ritesh Malik invested $1.6 million in the startup on 16 November 2021. CatalyzeX offers the largest collection of machine learning models and codes for engineers, developers, and technical leaders to power their projects and receives expert advice when needed. The specialities of the startup include machine learning, natural language processing, data engineering, speech recognition, and business intelligence.

    Bimaplan

    Bimaplan Logo
    Bimaplan Logo

    With his interest in the insurance industry, Ritesh Malik invested in Bimaplan on 16 March 2021. The startup was founded in 2020 and has its headquarters in Bangalore. The startup aims at providing an affordable insurance platform for Indians. The vision of Bimaplan is to provide financial security through contextual life and health insurance products to 150 million vulnerable households.

    Supersourcing

    Supersourcing Logo
    Supersourcing Logo

    Ritesh Malik invested in Supersourcing and has a minority holding. An IT outsorucing platform that seeks to help companies find the best companies in tech to work with, Supersorcing has 3 investors, Nikhil Sharma, Ritesh Malik, and Vijay Sharma. Out of the three, Malik has invested $1 million in Supersourcing on 8 February 2021.

    List of Angel Investors in Delhi | Delhi Angel Investors
    Here is a list of angel investors in Delhi and their contacts. Go through Delhi investor’s list to find out details for investment in startups.
    StartupTalkyJeenal Jain

    Bitespeed

    Bitespeed Logo
    Bitespeed Logo

    Bitespeed is a software development company based in Gurgaon, Haryana that assists e-commerce brands on Shopify to create them more appealing to the customers. Among the 21 investors of Bitespeed, Ritesh Malik became an investor-only in December 2020 by investing $275K.

    Trulymadly

    Truly Madly Logo
    Truly Madly Logo

    Truly Madly is an Internet publishing industry that aims to provide an online dating and matchmaking platform. The website is accessible via Android and iOS apps as well as a progressive web app. Currently, Truly Madly enjoys a large user base approximated at 6 million. Owing to its tremendous success, Ritesh Malik became an investor of the startup on 31 August 2020 by investing ₹81 million.

    inFeedo

    inFeedo Logo
    inFeedo Logo

    inFeedo is a Human Resource Service to help employees engage, predict attrition, and address FAQs with conversational artificial intelligence that people love. Founded in 2013, the startup has been able to make more than 100 million employees valued and heard.

    As Ritesh Malik has an interest in Human Resource Management, he has invested $700K in the company. inFeedo specializes in artificial intelligence, predictive people analytics, enterprise software, employee engagement, and human resources.

    Fin Robotics

    Fin Robotics Logo
    Fin Robotics Logo

    Fin Robotics is an Indian hardware product company that has a mission to make India the next big entrepreneurial hub of the world. Malik was the first investor and mentor in Fin Robotics. The company specializes in gesture science, human-computer interaction, and natural user interface.

    Adstuck Consulting

    Adstuck Logo
    Adstuck Logo

    Malik is a prominent investor in Adstuck Consulting, augmented reality and digital media agency. The prominent function served by the enterprise is to help firms to market their products engagingly and creatively. Over the years, Adstuck Consulting has worked with well-known companies, including Flipkart, Snapdeal, and ClearTrip.

    Project Guerrilla

    Project Guerilla Logo
    Project Guerilla Logo

    Project Guerilla is an accelerator firm founded by Ritesh Malik. While the main goal behind this venture was to foster entrepreneurship in India, the project also aims at bringing a premiere India-based accelerator and incubation center to India. The project, moreover, was launched back in the year 2013 and has funded 41 startups since then.

    Namita Thapar Funded Startups in Shark Tank India
    Namita Thapar encourages budding entrepreneurs by investing in their startups. Here is a list of 25 startups funded by Namita Thapar.
    StartupTalkyBharath

    FAQs

    Who is Ritesh Malik?

    Ritesh Malik is an Entreruner, Doctor and angel investor. He is also the founder of Innov8 and Project Guerilla.

    How many companies have Dr Ritesh Malik invested in?

    Dr Ritesh Malik has invested in more than 50 companies, he is now currently mentoring 11 startups from different industries.

  • Insights on the Indian Startup Ecosystem Shared by a Venture Capitalist

    Mr. Amit Ratanpal is an alumnus of Harvard Business School with over 20 years of experience across private equity, capital markets, asset management, and investment banking with large organizations like Birla Sun Life and ICICI Group. He has also set up various domestic and global funds, through which he invested and managed ~INR 300 Cr with multiple successful exits. Leveraging his experience and strengths, he co-founded BLinC with his partner RK Rangan, to support entrepreneurs and invest in EdTech and FinTech sectors in India.

    Here is an excerpt of the interview with Mr. Amit Ratanpal, Founder & MD, BLinC Invest on Indian Startup Ecosystem.

    How was the year 2021 for you as an investor/VC?

    It was definitely a high-momentum period as private investments touched new peaks and multiple unicorns emerged throughout the year from all sectors. 2021 was a milestone year for BLinC – we had successful exits, launched our INR 100 Cr BLinC Fund II, and also made our first investment from the Fund in an InsurTech company named Vital.

    How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?

    As an investor, I always strive to find the perfect balance between the quality of the promoter and the scalability of the business idea. We at BLinC work very closely with the promoters of our portfolio company, and hence, alignment with the promoters plays a key role in our investment decisions. It is always great to work with experienced and honest entrepreneurs who are good at business execution, organization development, and fundraising.

    What is a warning sign for you when investing in a startup?

    I prefer investing in startups whose key management team is execution-focused and takes a hands-on approach to the business. Another red flag is when promoters do not have a clear understanding of what problem they are trying to solve for their customers and how significant it is.

    What are some common biases you find in the Indian Startup ecosystem?

    One of the most common biases in the Indian startup ecosystem is “growth over profitability”. Businesses today adopt a high-burn-high-growth strategy without focusing on profitability. However, high growth does not necessarily lead to profitable unit economics. On the other hand, there is a general bias towards funding entrepreneurs coming from top-tier educational institutions.

    What are your views on the SharkTankIndia Episodes until now?

    I believe the show will surely motivate all the aspiring entrepreneurs, which will further amplify the existing entrepreneurship wave in the country.

    Shark Tank India: What is it? Who are the Judges?
    The popular business reality TV series has finally debuted in India as Shark Tank India. See who are the judges and will it be a success?
    StartupTalkyDamini Bhandary

    We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?

    Exits, especially through IPOs, are a great sign of success for both entrepreneurs and investors. IPO exits also generate a good amount of liquidity for the investors, who can further invest in other startups in the ecosystem, thereby, improving the liquidity in the market. I believe this phenomenon is only going more prominent over the coming years. On the other hand, the increasing number of IPOs also serves to indicate the maturity of the investors in the market, especially with regards to the acceptance of new-age business models that are yet to turn profitable.

    More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?

    It is the changing consumer mindset that has enabled these Unicorns to grow. Today’s consumer prefers convenience, is very open to try new products, and is less risk-averse than the consumer of the previous decade. Most of the unicorns have tapped into this changing consumer mindset to identify and solve unique problems for their customers. For example, Licious has completely changed the way consumers order meat. I believe the valuations are steep, and there is a bubble. However, like everything, good businesses always come at a higher price.

    How can we support/enable entrepreneurs in tier2 and tier 3 cities?

    Entrepreneurs in Tier 2 and Tier 3 cities suffer from lack of access to quality resources. One of the most effective ways to fill this gap is to set up incubation centers in these regions in partnership with colleges, to provide access to top quality mentorship and industry experts.

    What do you look forward to as an investor in the year 2022?

    Budget 2022 has focused significantly on leveraging technology to penetrate deeper into the Tier-2 and lower cities in India. I expect technology-led businesses to gain significant market traction and attention from the investor community, giving rise to new unicorns in 2022. At BLinC, we are looking forward to deploying our Fund across various whitespaces identified through our internal research.

    What are a few sectors you think would be hot in the upcoming year?

    Education and Financial Services sectors have been very resilient through the pandemic. Companies in these sectors have a large potential to leverage technology to drive deeper penetration, and I expect these sectors to continue growing at an accelerated rate in the upcoming year.

    One learning that you would like to share with founders who are looking to raise funds?

    It is all about execution, prioritization, and defining the short-term and the long-term focus. Early-stage startups should have a detailed understanding of their target market, competitive landscape, and the target customers. It is critical to think from the customer’s perspective and solve at least one real pain point of the customers. It is important to consistently prioritize and make efforts to achieve the product development milestones and the targets of the business plan. While pitching to the investors, it is important to give comfort to the investors around your market understanding and your execution capabilities.