Tag: investors

  • Top 8 Investors in India | The Most Successful Investors in the Indian Stock Market

    The Indian stock market has become one of the most dynamic business spaces wherein all the stakeholders have the same hope and expectations. The way it functions and reaps losses and profits has always been a site of great interest for all budding investors. There are a large number of people who carefully follow investors and their investing strategies along with the stock. There is absolutely no doubt that the ways in which investors make money out of the equity market give immense inspiration to budding investors. This article will discuss some of the top investors in the Indian stock market along with their general merits and investment strategies.

    How to start investing in your 20s?

    Rakesh Jhunjhunwala
    Radhakishan Damani
    Azim Premji
    Mohnish Pabrai
    Vijay Kedia
    Nemish Shah
    Dolly Khanna
    Ashish Kacholia

    Value of Change in Stocks in GDP at Current Prices India (FY 2016-2022)
    Value of Change in Stocks in GDP at Current Prices India (FY 2016-2022)

    Rakesh Jhunjhunwala

    Net worth: $5.8 billion
    Portfolio and Holdings: Titan, CRISIL Ltd., Metro Brands Ltd., Nazara Technologies, Ltd., Aptech Ltd., Agro Tech Foods Ltd., and more

    Rakesh Jhunjhunwala - Top Investors in the Indian Stock Market
    Rakesh Jhunjhunwala – Top Investors in the Indian Stock Market

    Known as the Indian Warren Buffet, Rakesh Jhunjhunwala has his investments net worth rising above Rs 31,833 crore by 2022. His death on August 14, 2022, was indeed a loss to the whole of the Indian stock market. This billionaire business magnet started investing with merely Rs.5000 in 1985. As of 2022, his holding in Titan alone is worth Rs. 11,000 crores. Rakesh Jhunjhunwala and Associates publicly hold 32 stocks. Apart from being a staunch investor, he also held many positions of power as a chairman and member of the board of directors of various reputed companies. In 2021, Jhunjhunwala invested $35 million for a 40% stake in Akasa Air. He is the co-founder of this new ultra-low-cost Indian airline.


    Rakesh Jhunjhunwala- How he became big bull of Dalal street
    Rakesh Jhunjhunwala or Warren Buffet of India started his journey with Rs. 5K and now stands at a net worth of $620 crore. Peep in to know more.


    Radhakishan Damani

    Net Worth: $20.4 billion
    Portfolio and Holdings: United Breweries Ltd., India Cements, 3M India Ltd., Blue Dart Express Ltd., Avenue Supermarts Ltd., and more

    Radhakishan Shivkishan Damani - Top Investors in the Indian Stock Market
    Radhakishan Shivkishan Damani – Top Investors in the Indian Stock Market

    Radhakishan Shivkishan Damani is a billionaire investor hailing from Bikaner who is also the founder of DMart. He is an astute investor in the Indian stock market with his portfolio net worth running up to Rs. 161,356 crores. He manages his portfolio through his investment firm called Bright Star Investments Limited. In 2022, he was ranked as the 98th richest person in the world. His prudence as an investor is evident in the way his stocks have grown over the years. His stocks rose from Rs. 157.65 crores to Rs. 322.65 crores in the last year. This doubling happened at a time when the Indian stock market was at its weakest after the Russia-Ukraine war. His careful investments not only help him but also other shareholders as well.

    Azim Premji

    Net Worth: $9.8 billion
    Portfolio: Wipro Ltd., Tube Investments of India, Balrampur Chini Mills Ltd.

    Azim Premji - Top Investors in the Indian Stock Market
    Azim Premji – Top Investors in the Indian Stock Market

    Azim Premji is an Indian investor, businessman and engineer primarily known for his valuable contribution to the growth of the internationally acclaimed company, Wipro. He founded PremjiInvest which focuses on private equity and venture capital investments. Azim was one of the richest people in India before he gave up a large part of his personal wealth for charity. He was also the first Indian to sign the Giving Pledge, which is an initiative by Warren Buffet and Bill Gates that urged the rich people in the world to commit to giving their wealth to society as charity. In 2020 alone, he donated over $70 million to charity.

    Mohnish Pabrai

    Net Worth: $148.3 million
    Portfolio: Edelweiss Financial, Rain Industries, Suntech Realty

    Mohnish Pabrai - Top Investors in the Indian Stock Market
    Mohnish Pabrai – Top Investors in the Indian Stock Market

    An ardent follower of Warren Buffet, Mohnish Pabrai is an Indian-American investor. He is also the founder of the investment firm named Pabrai Investment Funds. Founded in 1999, his firm has given a return of a whopping 517%. Pabrai’s investment strategies are known to be focused on low-risk, high-certainty stocks and invest in companies that are well-managed with minimal downsides. He has a portfolio value of over Rs.1,875.9 crores holding three stocks. With the goal of giving back what they had to society, Monish Pabrai along with his wife started Dakshana Foundation which helps poor students from rural and semi-urban government schools to crack competitive exams like JEE.

    Vijay Kedia

    Net Worth: $96.7 million
    Portfolio: Tejas Networks Ltd., Vaibhav Global Ltd., Elecon Engineering Company, and more

    Vijay Kedia - Top Investors in the Indian Stock Market
    Vijay Kedia – Top Investors in the Indian Stock Market

    Popularly known as the “Market Master”, Vijay Kedia is an Indian investor hailing from Kolkata. He has been in the market since he was 19 years old. The investment strategy of Kedia is widely called SMILE which expands itself to – Small in size, Medium in experience, Large in aspiration and Extra-large in market potential. He invests only after doing a deep study of the management of the respective company and the ways in which it functions. He believes that it is important to wait and invest for a long time to gain better benefits. From 2000 to 2022, some of his shares have grown by over 47,150% which shows the vision with which the investor invests in each and every stock.

    Nemish Shah

    Net Worth: $216 million
    Portfolio: Lakshmi Machine Works Ltd., EID Parry (India) Ltd., Bannari Amman Sugars Ltd., and more

    Nemish Shah - Top Investors in the Indian Stock Market
    Nemish Shah – Top Investors in the Indian Stock Market

    Nemish Shah is one of the finest investors who follow strategies very similar to Warren Buffet. He is also the co-founder of ENAM. It was founded in 1984 as a broking entity. The organisation have played a pivotal role in various significant IPOs in the country. He focuses on those companies that increase their business by improving the usage of their products. Some of his stakes, especially in Asahi India, have tripled in a span of three years. He is also credited for the development of investment research in India.

    Dolly Khanna

    Net Worth: $74.4 million
    Portfolio: Chennai Petroleum Corporation Ltd., Polyplex Corporation Ltd., Sharda Cropchem Ltd., Monte Carlo Fashions Ltd., and more

    Dolly Khanna - Top Investors in the Indian Stock Market
    Dolly Khanna – Top Investors in the Indian Stock Market

    Dolly is an investor based in Chennai who is known for her excellent vision of making prompt investments. She primarily buys stocks that are very less popular. She does not hesitate to trim stocks while she explores new ones whenever necessary. Recently she added Monte Carlo Fashions to her profile which has stirred a lot of attention. As of June 2022, she holds 3,69,032 shares or a 1.78% stake in this fashion brand.


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    Ashish Kacholia

    Net Worth: $234.2 million
    Portfolio: Shaily Engineering Plastics Ltd., Barbeque-Nation Hospitality Ltd., NIIT Ltd., and more

    Ashish Kacholia - Top Investors in the Indian Stock Market
    Ashish Kacholia – Top Investors in the Indian Stock Market

    The founder of Lucky Investment Managers, Ashish Kacholia is one of the most prudent investors in the Indian stock market. Recently he bought a multi-bagger stock named Best Agrolife that has had a 6000% increase in just 5 years. As per reports, he bought 3,18,000 shares of Best Agrolife paying Rs 940.88 apiece. The pattern of his investments and their growth have been very promising owing to his attention to the details of the company’s growth and development.

    Conclusion

    The stock market is a volatile platform that can go either way at any point in time, It is definitely not a spot to make a blind, uninformed choice. The stories of successful investors tell two things. Firstly, it is important to have a strong investment strategy which is based on careful observation and secondly, diversification is the key. Additionally, it is also important to accept that there can be losses too. Keeping that in mind, there is absolutely no doubt that the Indian equity market is a great place to learn and grow.

    FAQs

    Who is the king of the share market over the world?

    Warren Buffet is said to be the king of the share market over the world. He is one of the richest people in the world, known for his strategic investment skills.

    Who is the big bull of India?

    Rakesh Jhunjhunwala is the ‘Big Bull of India’. He is known for his accurate predictions regarding stocks and market fluctuations.

    Who owns the largest portfolio in India?

    Rakesh Jhunjhunwala owns the largest portfolio in India with his portfolio worth Rs 31,833 crore.

    Who are the top investors in India?

    Some of the top investors in the Indian Stock Market are:

    • Rakesh Jhunjhunwala
    • Radhakishan Damani
    • Dolly Khanna
    • Azim Premji
    • Ashish Kacholia
  • Kelly Criterion- A Warren Buffet Used Investment Analyzing Formula

    Everyone seeks to earn a hefty sum of money as well as maximize the long-term growth of capital. All they require is to calculate the expected return to benefit their money value and bankroll.

    On the other hand, the calculation of long-term wealth should minimize uncertainty. Therefore, Kelly L.J has developed a theoretical statistical method to measure expected return value in the future, by adjusting the investment size with the use of the Kelly criterion.

    People flummox themselves with the Kelly criterion and return on Investment formula. So the difference between these two is simple: interest is considered while calculating ROI. And the Kelly criterion follows the probability.

    What is Kelly Criterion?
    What are the Pros and Cons of Kelly Criterion?
    How does the Kelly criterion work?
    How do investors use the Kelly criterion?
    Mechanism of Kelly Criterion

    What is Kelly Criterion?

    Generally, the Kelly criterion is a formula that maximizes the expected value of the logarithm of wealth that is equivalent to maximizing the expected long-term growth rate. The idea was derived from an American scientist John L. Kelly, who was a member of a research center at AT&T’s Bells Lab, New Jersey in 1956.

    This method is used mostly by gamblers and investors to get double on the investment or bet they have funded. The formula works through a predetermined fraction of assets.

    The Kelly criterion method earned recognition in gambling and investment, as people aim to get more returns and save bankroll. So, the Kelly criterion fit the ball in accelerating the earnings.

    What are the Pros and Cons of Kelly Criterion?

    Pros of Kelly Criterion:

    • The main purpose of implementing the Kelly criterion is to estimate the expected value in the future which helps maximize the rate of asset growth.
    • There is no plethora of loss of money on the investment, as it will take less money in case of prolonged series of failures.
    • Lately, the Kelly criterion is highly dependent on the probability of winning and the probability of loss of the asset value. So, if you have the chance of high returns on the investment, it’s a win-win situation for you accordingly.

    Cons of Kelly Criterion:

    • As said before, The Kelly criterion works with probability whereas if the rate of investment runs positive in the market, you would benefit from its output. Meanwhile, if the asset value faces a bank stake, then it’s a loss for you.
    • Secondly, people won’t stay in the long-term investment unless it shows propitious promising in the future for the investors.

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    How does the Kelly criterion work?

    The Kelly criterion is formulated in two fields- Gambling and investment, which is the only place, where a person can win a hefty amount and manage a long-term growth of capital.

    The method is all about the comparison of other strategies to identify the asset value. In the olden days, the Kelly criterion was made for gambling, where the participant bets on the coin and expects a high value.

    Besides, the Kelly criterion works on investment by enticing participants to pay off more on such investment which gives him flavorful output in the future.

    Participants use the Kelly criterion, where the expectation value of a function is given by the sum, over all the possible outcomes, of the probability of each particular outcome multiplied by the value of the function in the event of that particular outcome.

    How do investors use the Kelly criterion?

    Kelly Criterion Formula
    Kelly Criterion Formula

    Kelly criterion is used by investors while trading in the stock market to find the percentage of the money they need to allocate to each investment. This is done by using a mathematical formula.

    K% = W – [(1-W) / R]

    where,

    K%=The Kelly percentage

    W=Winning probability

    R=Win/loss ratio​

    The investors have to access their past 50 to 60 trades from their recent tax returns. Investors have to calculate the value of W – the winning probability. The value can be found by diving into the number of positive resultant returns by the total number of trades that can be both positive and negative. Anything above 0.50 and any number close to 1 is good.

    Then R – win/loss ratio is calculated by dividing the average gain on positive trades by the average loss on negative trades. It is good if the number is less than one and the losing trades are small.

    Both the W and R values are applied to the Kelly criterion formula and the result is noted. The result percentage indicates the size of the positions that should be taken in the assets in the portfolio. If the resultant percentage is found to be 0.31. Then one should take an estimated 31% position in each of the equities in the portfolio.

    It is advised that not more than 20% or 25% be invested in one asset or equity as it increases the financial risk.

    The Kelly criterion is known to be used by popular investors like Warren Buffet, Charlie Munger, and Bill Gross.


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    Mechanism of Kelly Criterion

    Kelly Criterion is a money management principle and can be applied mainly in activities related to gambling and investment. In investment, the formula calculates the percentage of the account that the investor needs to invest. In sports gambling, the formula is mainly applied to maximize the potential returns on wagers and minimize the chances of losing a bankroll entirely.

    Let’s take an example on the note of “how do the Kelly criterion formulae apply?” Let’s say probability, the first thing that comes to mind is fifty-fifty chances or a win-loss situation. If you roll a dice, then the chances of getting any number between 1,2,3,4,5, and 6 are unknown. So, take 1,2,3 as 60% possibility whereas 4,5,6 are 40% possibility and vice versa.

    For instance; if a company offering a trade of 27.73 per share with an upside range of 37.65 and downside worth of 23.85.

    So, out of 100% per share value (27.73)- 70% probability of earning an upside value of 37.65 and 30% of 23.85.

    if you calculate the percentage value of upside and downside per share, you will get a 35.77% Gain and 13.99 as a Loss.  

    So, now perform the Total Expected Outcome (Probability)= (70% x 35.77) + (30% x [-13.99 LOSS]) = 20.84

    now, apply Kelly Criterion formulae;

    Total capital planning to allot = 20.84/ 35.77= 58.26%

    Therefore, the company plans to invest 58.26% of the capital investment.

    Conclusion

    Kelly Criterion is one famous method used for a long time both in gambling and investments. Kelly criterion helps in minimizing the loss and focuses on achieving efficient returns through diversification. It is necessary and important that proper judgment based on reliable means should be taken while dealing with capital.

    Even though the formula was created by John Kelly of Bell Labs, to analyze long-distance telephone signal noise, the Kelly criterion acts as a reliable model to help gamblers and investors in deciding the size of the position they should take which leads to diversification and efficient and effective money management.

    FAQs

    What is Kelly Criterion?

    Kelly Criterion is a formula proposed by John Kelly used by investors to calculate what percentage of their money they should allocate to each investment.

    Which investors use Kelly Criterion?

    Popular investors like Warren Buffet and Charlie Munger, along with legendary bond trader Bill Gross.

    Who developed the Kelly criterion?

    The Kelly Criterion was proposed by John Kelly in the 50’s who at that point was working for AT&T’s Bell Laboratories.

    What is the formula for Kelly criterion?

    The Kelly Criterion formula is K% = W – [(1-W) / R]. Here, K% stands for Kelly percentage, W stands for winning probability and R stands for the ratio of winning or losing.

    Kelly Criterion is used for?

    Kelly criterion is mainly applied in the field of investment and gambling. It is used to determine the amount of money one should bet in a single round.

  • All About Pitch Deck Presentation | Pitch Deck Tips for Pitching Investors

    If you’re a business owner, you’ll need to know how to pitch your idea. Even if you don’t intend to seek investment, having a strong elevator presentation demonstrates that you understand your company inside and out. Which will come in handy if and when you decide to seek funding. Whether you’re a new owner or a “corporate entrepreneur,” your pitch deck is crucial, because it represents your logic for why investors should believe in your concept and provide you with a substantial sum.

    To market their firm to potential investors, startups commonly create a “pitch deck.” It’s tough and time-consuming to raise funds from investors. As a result, it’s critical for a business to develop a strong investor presentation deck by telling a fascinating and appealing tale.

    We’ll talk about the value of a solid pitch deck and other financing presentation tips in this article.

    What is a Pitch Deck?
    Importance of Pitch Deck
    Tips To Successful Pitch for Funding

    Pitch Deck Tips | How to create a Pitch Deck for Investors

    What is a Pitch Deck?

    A pitch deck, also defined as a start-up or investor pitch deck, is a demonstration that provides information regarding the company to interested clients. The fundamental purpose of a pitch deck, as weird as it may sound, is to get to the next round, not to get funds.

    Obtaining finance entails a multi-step procedure. The first step on the scale is a good, informative pitch deck. You’ll want to pitch investors with a concept that piques their interest and encourages them to interact with you. A pitch deck presentation is made up of a number of slides that help you create a convincing tale about your company. You can make one with standard software like PowerPoint or with a cutting-edge tool like Visme to produce a one-of-a-kind slideshow.

    Importance of Pitch Deck

    A Pitch deck is the first tool entrepreneurs use to communicate with investors, whether online or in person. It serves as a marketing pitch for financiers, allowing people to comprehend the startup in the way that they are used to. A pitch deck assists in conveying information to potential investors, clients, and partners in an organised and aesthetically appealing manner. The goal of the pitch deck is to explain the sophisticated workings of your business and the industry it works in, to stockholders interested in your venture, with the goal of generating their attention to your startup.


    List of Top 25 Companies Pitch Deck
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    Tips To Successful Pitch for Funding

    Pitch Deck Presentation
    Pitch Deck Presentation

    Funding is quite important for any startup growth. Pitch Deck presentation helps in telling a compelling story of your business that attract investors to invest in your startup. Many startups turned unicorns with successful pitch deck presentations. Here are some pitch deck tips for pitching investors to your business.

    Build an Impressive Presentation

    Spend the effort preparing your pitch deck beforehand. The idea is to make a deck that is simple to work with and that gets financiers enthused about your company. With this in mind, you should prepare a 10-minute edition as well as an extensive one that covers everything you’d like to share with possible investors.

    Rehearse Your Pitch Properly

    You should work on your pitch. Because if you won’t be able to swiftly communicate with each aspect of your company, every other piece of advice on this list will be rendered useless. Too many founders believe that simply knowing their business will enable them to articulate its value quickly and effectively. Furthermore, having a dynamite pitch deck with eye-popping images would suffice. As a result, they arrive at pitch meetings ill-prepared. Spend the time to rehearse, simplify your content, and maintain just the aspects that contribute to the success of your company. Anything else can be left on the final cut.

    Show Realistic Target Market

    Target Market in Pitch Deck Presentation of DocSend
    Target Market in Pitch Deck Presentation of DocSend

    Even if it is true one day, don’t say that everyone on the planet is possibly your intended audience. Consider who you’re designing your item for and divide your marketplace into TAM, SAM, and SOM segments. This will not only amaze your listeners, but it will also assist you in strategizing your roll-out strategy. When talking about your target market, strive to create a user persona or your ideal customer if you can. This can assist investors in visualising the possible consumer base and shows that you’ve given careful consideration to who your company will service. In a fast pitch, it’s also far easier to communicate to a specific person rather than a large audience.

    Business Model of Your Startup

    Business model in Pitch Deck Presentation shared by Mint
    Business model in Pitch Deck Presentation shared by Mint

    This presentation is usually the most important to investors. How are you going to make a profit? The business model of your business is very crucial, be it a freemium business model, subscription business model or Franchise Business Model. Be very detailed about your products and pricing, and underline how eagerly your consumer awaits your entrance once more.

    Share Your Milestones

    Milestone shared in a Pitch Deck Presentation shared by Castle
    Milestone shared in a Pitch Deck Presentation shared by Castle

    You would like to establish credibility early in the presentation. Take some time to share the success you’ve gained in your field. This is your chance to talk about your accomplishments. What you and your team have accomplished thus far will impress the investors (sales, contracts, key hires, product launches, and so on). You’ve probably stated parts and pieces of this already, but now is the time to establish a whole picture of your company. But don’t simply talk about what you’ve done; also talk about where you’re headed. Show them a timeline with the next stages and extra milestones, as well as how the financing will assist in attaining them.

    Introduce Your Crucial Team Members

    Investors are more interested in people than ideas, so be sure to include information on your hard-working crew and why they are the best people to manage this company. Also, make sure to mention any skill sets that your team may be lacking. Most startup teams are short on crucial personnel, such as marketing, managerial knowledge, programmers, sales, operations, and financial management. Let them know you’re aware that you’re not an expert in every field.


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    Conclusion

    You won’t know how fantastic your pitch is unless you give it a try. Don’t get too worked up, and approach each investor pitch as a learning opportunity for both you and your company. You’ll only get better as time goes on, and you’ll be able to apply what you’ve learned to all aspects of your company.

    FAQs

    What is a Pitch Deck Presentation?

    Pitching is a short-term presentation of your business idea that can last anywhere from a few seconds to a few minutes. You can either utilise a PowerPoint to support your speech or simply deliver it verbally. A pitch’s main purpose is to attract new consumers, investors, or stakeholders to your company.

    What makes a good pitch deck?

    It should include your company plan’s main themes, the items and services you offer, high-level financial estimates, and capital requirements.

    What does a great pitch deck look like?

    A pitch deck is a 10- to 20-slide presentation that gives a quick overview of your firm, revenue, business model, and startup goal.

    What are the elements of a good Pitch Deck presentation?

    Some elements of a good Pitch Deck Presentation for startups are:

    • Product/Service the Business Offer
    • The Problem your business is solving
    • Target Market Size
    • Business Model
    • Revenue Model
    • Competition
    • Crucial Team Member
  • 10 Great Tips On How to Pitch Investors for Your Business

    We are living at a time where startups are playing a crucial role in every country, they are turning into industrial giants that are taking the name of their country further and boosting their economy as well. Now, for any business start-up, the most crucial step is to organize funds so that they can take the business forward.

    Arranging for funds, however, can become a nightmare for many entrepreneurs. Being an extremely important part of establishing a successful business, even minor mistakes made, while presenting your idea can lead to the loss of prospective investors and hence hinder the path towards the foundation of a successful business.

    This list here comes to your rescue, by putting down mistakes to avoid during pitching. In this article, we will explore some vital points that will help you during the pitching of your business to investors.

    1. Know Your Investor
    2. Work on Your Pitch
    3. Focus On Your Presentation
    4. Present Your Business Plan
    5. Increase Your Investor’s Interest
    6. Make Your Proposal Unique
    7. Be Humble
    8. Avoid Exaggerating
    9. Do Not Show Desperation
    10. Do Not Be Overconfident

    1. Know Your Investor

    If you want someone to invest in your startup the first step is to get to know them well. Do your research before approaching the person or organization. Some mistakes to avoid during pitching to investors for your business. There is no need to get personally close all you need is the small official details about their area of work so that you can use it to your advantage while pitching.

    Few points to consider while knowing an investor
    Few points to consider while knowing an investor

    Make a note of the different ideas that they have invested in earlier to find out what type of work they prefer to invest in. If you ask a person operating food chains to invest in a software business there are huge chances of you being rejected, so knowing your investment is extremely critical.

    2. Work on Your Pitch

    A chance to pitch can come up anywhere, a party, elevator, or on public transport. However, in these situations, there isn’t enough time at hand so reduce the length of your pitch. Ideally, try keeping it a minute or two long.

    Most people start losing interest after a minute, hence, make the pitch small and effectively highlight all the attractive and remarkable points so that the investor is intrigued in doing business.

    3. Focus On Your Presentation

    Usually, start-up organizations end up putting all their points and ideas into a presentation hoping that the investor will be impressed, but a presentation filled with too many words will cause more harm than good.

    When presenting, keep in mind that your slides only have a gist of the plan of action. It should be short, crisp, and to the point like your pitch. Try to wrap up your presentation in 12 to 15 minutes. Generally, you will get only half an hour with the potential investor including the time for Q&A, therefore, use the time wisely.

    Main points to remember while preparing for the presentation
    Main points to remember while preparing for the presentation

    4. Present Your Business Plan

    The pitch and presentation won’t be of any use if the business plan is not thoroughly laid out. If the business strategy does not highlight the goals of the start-up along with the expected revenue, size of the target market, and description of the start-up management team, the investors will not be convinced. The important point is to make them realize how strong the business is.

    5. Increase Your Investor’s Interest

    Every person wants to start a new company to provide people with better facilities and give them something but that’s not how an investor would think. An investor will only agree to fund a business if he is sure of gaining a profit; hence, you need to make sure that you mention your expected monetary gains for the next few years.

    6. Make Your Proposal Unique

    Sending your proposal to every potential investor through email in the hope of getting a response will not yield any results because investors are swarmed with thousands of proposal mails every day, so the chances of getting a call are very slim. You need to find unique ways of making your proposal stand out so that it can invest your potential investors.

    7. Be Humble

    When you land an interview, with a potential investor, be humble. Let them ask questions. If any flaws are pointed out in your model or plan, accept them and find ways to improve them. The investors have seen their fair share of business proposals and the advice they give will be beneficial.

    Do not be stubborn and keep an open mind while answering. The reason an investor ask questions is that they are interested and wants to make sure that they are putting money in the right place.

    8. Avoid Exaggerating

    Exaggerating financial gains and lying about them is going to get the proposal rejected instantly. The investor will want to know exactly where and how much money is being spent. If you get caught while lying, it could make a big opportunity slip through your fingers.

    9. Do Not Show Desperation

    The funds are extremely important for the survival of the business. There might be an urgent need for the funds but showing that desperation to the investor would be a wrong call. Confidence is crucial and you must possess that regarding your business idea as it is very crucial.

    10. Do Not Be Overconfident

    Even though being confident is good, being over-confident and bragging about the growth and profits of the business will drive the investor away. This will give them the impression that you are not realistic and will get you rejected. Try to be subtle while approaching potential investors.

    Conclusion

    It’s always challenging to pitch your ideas to Investors as an entrepreneur. Focus on numbers while presenting your story in front of investors. Don’t forget to share the marketing plan. Otherwise, practice your pitch and dress well. Prepare yourself for your next pitch, while keeping the above points in mind.

    FAQs

    How do we find investors for business?

    Look for relatives and friends who are interested in your business, private investors are also there to choose from, crowdfunding platforms can also be used to find investors.

    Can we pitch an idea to the company?

    Yes, an idea can be pitched to the company but with the proper showcase that fulfills the criteria of that exclusive firm.

    How can we convince the investor?

    Investors can be convinced in many ways, some of the most common techniques to follow are to have a clear business plan with proper knowledge about its type of audiences, market conditions, and competitors. One also goes ahead with the convincing part by asking for the guide from the investor itself.

    How to approach an investor?

    Approaching an investor seems bigger task than actually dealing with an investor. One can always take the help of any intermediate party available, or the best approach for an investor is to go with the means of asking for a guide rather than directly coming up with the investing part.

  • What Does an Investor Look Out for in a SaaS Product?

    With dramatic tailwinds and accelerated digital transformation, the SaaS market has grown exponentially in the last decade. The industry has managed to amass a revenue of $104 billion in 2020. By 2022, the market is expected to reach $140 billion, according to Gartner.

    Whether you’ve created a SaaS product to solve a problem or make extra income, it is a valuable asset. However, when it comes to scaling the product, you need investment. But what’s the final checkpoint that the investor looks out for in a SaaS product? It’s vital to understand how valuations and metrics work in businesses.

    Investors think a lot about characteristics that are representative of an early-stage startup. Before they invest in your company, they want to see specific metrics. And so, to help you prepare these, we’ve compiled an overview of the most crucial SaaS metrics. If you adhere to these, your valuation is bound to improve.

    1. Clear Ideal Customer Profile (ICP)
    2. AI-powered SaaS Applications
    3. Product-led Growth Strategies
    4. MRR
    5. Customer Acquisition Cost (CAC)
    6. Churn Rate
    7. EBITDA

    1. Clear Ideal Customer Profile (ICP)

    When it comes to product building and efficient selling, it’s fundamental to know your target audience. Companies that have an apparent understanding of their target customers have improved chances of success.

    Investors look for a well-defined ICP before investing in the business. Therefore, entrepreneurs should establish their ICP through apparent insights and extensive “Voice of Customer” Research. It’s also essential to build the customer base from a combination of past experiences.

    Some of the most substantial benefits of a clear ICP are:

    • An efficiently targeted go-to-market (GTM).
    • Highly focused product roadmap.
    • Shorter sales cycles and value propositions.

    2. AI-powered SaaS Applications

    Artificial intelligence plays a significant role in advancing modern software to automate work for consumers. At its core, AI-powered SaaS applications can be trained on increasingly larger datasets and be further augmented with customer-specific data. Thus, allowing users to automate tasks and make better-informed business decisions. Consequently, it will propose a unique standpoint to the investors.

    Some SaaS companies developing AI-powered applications comprise:

    • Yalochat – It is a conversational AI-powered platform that allows businesses to efficiently communicate with customers.
    • Zeni – It is an AI application that provides bookkeeping, financial reporting, and invoicing services.

    3. Product-led Growth Strategies

    The product-led growth (PLG) strategy is crucial when it comes to building SaaS companies. It allows the consumers to test the product for themselves. Without the restraint of features, users can effortlessly explore the product and infer its value.

    This not only helps businesses develop consumer-like products but also furnishes lucrative returns. The PLG strategy has become business-critical across all enterprises functioning. Companies adhering to product-led growth have increased chances of being approved by investors.

    The PLG strategy has capitalised on a few trends, including:

    • Reduced sales cycle and buying decisions.
    • Fast employment (due to the cloud-based feature).
    • Easier purchasing (swipe a card and go).
    • Intuitive onboarding and adoption.

    4. MRR

    Monthly Recurring Revenue or MRR is a leading indicator of revenue growth. Hence, it’s a well-received way to appraise SaaS businesses. Investors are more likely to consider the MRR rather than the ARR (Annual Recurring Revenue). Simply because the ARR doesn’t furnish much proof of churn.

    Big SaaS companies with high MRR can raise a sizable amount of money during seed funding rounds. If small businesses or brands are experiencing rapid growth and meet the criteria of investment, they could be valued using MRR. Below mentioned are the criteria:

    • More than $2M ARR
    • 50% growth year after year
    • Founder involvement isn’t important for the business’s survival.

    5. Customer Acquisition Cost (CAC)

    Customer acquisition cost or CAC is a significant metric to assess marketing and sales cost. It helps measure the effectiveness of your SaaS business’ customer acquisition strategy.

    Furthermore, it analyses the expense incurred (on average) to attain new consumers. CAC also represents the return on investments in sales and marketing. Thus, it is a meaningful metric for potential investors.

    An efficient customer acquisition cost allows the investors to gauge the scalability of your SaaS product or business.

    6. Churn Rate

    The churn rate is the long-term trajectory of any SaaS business. A low churn rate improves the recurring revenue, and growth rate – and curtails the risk of long-term value loss.

    Smaller companies have a higher churn rate because of less sophisticated needs and low demands. Investors would not invest in a SaaS company that experiences a high churn rate. That’s because it signifies you’re losing potential customers – and your company’s retention rate isn’t up to the mark. Hence, the churn rate is a fundamental metric that SaaS business owners need to cater to.

    Ideally, lost customers equal lost revenue. Besides, it’s far more expensive to attain new consumers than it is to retain the old ones. Therefore, businesses should focus on customer retention to improve scalability and performance.

    7. EBITDA

    EBITDA stands for earnings before interests, taxes, depreciation, and amortisation. SaaS businesses that make annual revenue of $5 million will likely use EBITDA.

    It is a substantial measure of core profit trends. This metric furnishes an accurate comparison between companies with different capital investments, tax profiles, and debt.

    Besides, it eliminates extraneous factors, boosting returns. This allows a fleshed-out infrastructure and accelerated growth in your SaaS business. Thus, making it investable.

    Conclusion

    The COVID-19 pandemic has bestowed heavy growth to the SaaS industry. With companies compelled to take their business operations online, the SaaS market has grown fierce – yet competitive.

    Seeking venture capital funding is of paramount importance in any SaaS business. Investors would only plough their money into your business when you can convince them of your company’s commercial viability and growth potential.

    To fight competition, survive, and thrive, you need to stand out from the rest. Thus, there are a few business metrics that you need to take care of. Essential metrics, such as the CAC, MRR, and Churn rate define your company’s scalability and future. Once you cater to these metrics, your SaaS business is ready to successfully attract investment.

    FAQs

    What do investors look for in a SaaS company?

    Low churn rate, Product-led growth, AI-powered SaaS applications, and EBIDTA.

    What is one of the most important metrics in a SaaS model?

    Customer lifetime value is one of the most important metrics in a SaaS model.

    What are SaaS metrics?

    SaaS metrics are different KPIs that companies measure to track their success and customer growth.

  • 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.


    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.

  • What Happens When a Public Company Goes Private?

    What happens when a public company goes private? Why would a publicly-traded company make that decision? What are its options once it does? It’s difficult to know how to answer these questions if you have no background information on the subject. To help you get some insight into what happens due to these transactions, we’ve collected seven pointers about going private and provide some insight into what happens due to these transactions. Hopefully, this guide answers your questions and helps you understand what happens if a publicly-traded company decides to pursue another route.

    When a Public Company Goes Private:

    The company is removed from the stock exchange

    No. of Companies listed on Stock Exchange in India
    No. of Companies listed on Stock Exchange in India

    Once a company goes private, it’s removed from the stock exchange. Investors will no longer be able to purchase or sell shares in the company through a major stock exchange.

    The company’s management team may still hold on to some of their shares, which they may sell in the future for a profit. But for most investors, this is the end of their involvement with the company.

    The company’s shares are withdrawn from the stock market

    When a publicly-traded company goes private, its shares are withdrawn from the stock market. This is a major shift for investors, who are used to seeing their investments on display on the stock exchange.

    Management often decides to go private, but investors can also initiate it. In some cases, an investor may buy out other shareholders and control the company. In other cases, multiple investors pool their resources and buy out existing shareholders.

    Existing Shareholders get paid

    When companies go private, their shareholders can receive various payout options. These include:

    • Cash payments to each shareholder are based on the number of shares they own. The payout can either be in one lump sum or spread over time.
    • Stock in a new company is formed when the parent company goes private. This stock could pay dividends or be sold for cash later.
    • New shares in the parent company that’s going private. Once those shares become publicly traded again, it’s possible for investors who hold them to make money off their original purchase price or by selling them at some point down the line.

    List of All the Upcoming IPOs in India 2022
    2021 was the year full of new startup IPOs from Zomato to Nykaa. 2022 also has many new listings, take a look at companies going public in 2022.


    The company no longer releases financial statements to the public

    Once a company goes private, it no longer releases financial information to the public. This means that investors who had previously owned shares of the company in question will no longer have access to any information about its finances or performance. However, this does not mean that the company goes completely dark: companies can still be purchased and sold by other companies using private transactions, which means that their financials are still available to their owners.

    The only major difference is that these transactions are not recorded on any stock exchange. Instead, they must be reported to regulatory bodies such as the Securities and Exchange Board (SEBI), allowing them to track how many outstanding shares exist within the private sector.

    Fewer regulatory requirements and obligations

    By going private, a publicly-traded company no longer has to deal with the many regulatory requirements of being a publicly-traded company. These include:

    • Annual reports: are required for publicly-traded companies and must be submitted to the SEBI.
    • Audited financial statements: audited financial statements must be submitted to the SEBI for publicly-traded companies. This requirement helps ensure that investors access accurate information about their investments.
    • Required disclosures: publicly-traded companies must disclose information about their operations and management team to the public via annual reports and other filings with the SEBI.
    • Corporate governance: corporate governance refers to how businesses are run internally—for example, whether shareholders have voting rights over key decisions made by management, or who sits on boards of directors at large companies.

    Less capital available

    The reason for this is simple: a public company must disclose its financial statements, which means anyone can access them. This is great for investors who want to get in on the action and make money from their investments. Still, it’s not so great for companies that want to be able to keep their financials secret to protect proprietary information or avoid scrutiny from government regulators.

    By going private, companies can keep their financials under wraps and more of their profits for themselves!

    A public company that goes private no longer has to contend with quarterly pressures.

    Public companies are accountable to their shareholders, who demand that the company generate quarterly revenue and profit. These demands make it difficult for companies to focus on long-term goals, often leading to short-term planning and poor decision-making.

    Private companies have more freedom: they can focus on their long-term goals without worrying about those pesky quarterly reports!

    More flexibility

    When a public company goes private, it gains more flexibility in its operations. This means that the company can make decisions that may be unpopular with investors but which are better for the business’s long-term health.

    For example, a public company might cut costs to boost profits and increase shareholder value. This could involve layoffs or outsourcing certain aspects of operations. However, when a public company goes private, they no longer have to worry about shareholder concerns and can focus on what is best for the business as a whole.


    List of All the Upcoming IPOs in India 2022
    2021 was the year full of new startup IPOs from Zomato to Nykaa. 2022 also has many new listings, take a look at companies going public in 2022.


    Conclusion

    There is a lot at stake when a public company goes private.

    So there you have it, folks. That’s what happens to a company when it goes private. Of course, this article is only meant to be a general overview of the process. It may be worth learning more about private equity firms and the going-private phenomenon in general; then, you should do further research on those topics.

    This post’s subject can be applied to almost any situation involving a significant change in company ownership and structure. While there are many options that can be pursued when taking your company public or private, keep in mind the information above: timing and valuation matter. If you’re ready to make the leap, talk to an investment banker or investment broker/advisor, they can help!

    FAQs

    What is privatization in public sector?

    Privatisation of public sector means the transfer of ownership, management, and control of the public sector enterprises to the private sector.

    Which sectors are privatised in India?

    The sectors privatised in India are:

    • Atomic Energy
    • Space and Defence
    • Transport
    • Telecommunications
    • Power
    • Petroleum
    • Coal and other minerals
    • Banking, insurance, and financial services

    What happens if public company goes private?

    When a Public Company Goes Private:

    • The company is removed from the stock exchange
    • The company’s shares are withdrawn from the stock market
    • Existing Shareholders get paid
    • The company no longer releases financial statements to the public

    Which are the public companies that went private?

    Some of the popular public companies that went private are:

    • Twitter
    • Dell
    • Burger King
    • Hilton Worldwide Holdings
    • Reader’s Digest
  • Bootstrapped Start-ups May Be in Luck With Seed Investors’ Growing Interest

    The article is contributed by Andesh Bhatti –  Angel Investor & Founder of Collectcent.

    Seed investors usually invest for one of three reasons – indulgent, humanitarian, and utilitarian. They invest either because they believe the idea will bring a transformation in the market, uplift the community, or the most evident and widespread – bring in a good ROI. Even though every seed investor has a specific reason for investment, they are all driven by market trends.

    For instance, even though financial, industrial, and technology-related businesses are currently dominating India’s stock market, attracting both local and global investors, the historic highs of the MSCI India index which received twice the global index returns in the last year have been fuelled by demographic trends, government and fiscal policies and geopolitical shifts of the global economy post the pandemic.

    This is the phenomenon that has resulted in a boom in the established networks and syndicates, as well as individual investors who can provide essential seed funding– and bootstrapped start-ups have especially caught their interest.

    Why should bootstrapped start-ups matter for seed investors?

    Bootstrapped businesses attract investors because they have already made it through the ‘valley of death’, found product-market fit, and most probably (although due diligence will reveal the specifics of it) generated enough revenue to keep the firm de-risked. Not to mention, that because they don’t have the buffer of investment capital to fall back on, bootstrapped start-ups are also more creative and confident. There are other advantages to funding a bootstrapped start-up as well.

    Entrepreneurial self-confidence is fostered when people are pushed to think outside the box, come up with original solutions, and make essential trade-offs. This is significant for investors who are looking for innovative ideas to invest in.

    Plus, bootstrapped start-ups usually exclusively look for and work with people who are willing to have a stake in the company’s success, and are dedicated to seeing it succeed. This fosters a sense of belonging and commitment within the team.

    Building a firm without investment capital also forces you to be more resourceful and deliberate. You’re careful with hiring and outsourcing, wanting to accomplish more with fewer resources.

    What happens when bootstrapped start-ups and seed investors align?

    Start-up founders and investors both benefit from an investment. Right from the start, when the investment is made, deficit spending has the potential to significantly enhance growth if done correctly. Investment allows the bootstrapped start-up to expand faster than it would have been able to without. Founders are essentially giving up partial ownership in exchange for greater growth and ultimate value. Overall, it is a great prospect for investors and a great way for start-up founders to spend or share their equity- but first, both parties need to reach the optimum place for action.


    4 Most Successful Bootstrapped Startups in India – 2022
    Bootstrapped startups are booming in India. Know about the most successful bootstrapped startups. Here are top 4 bootstrapped startups of India.


    When does the investor’s interest arise?

    Building a team, testing the concept, establishing an online presence, garnering attention, finding consumers, and filing for intellectual property protection are all examples of major steps in the start-up development process. Once these are achieved, bootstrapped start-ups begin to look to raise capital to meet a new set of milestones.

    In the end, it all essentially comes down to important milestones and pivotal junctures called inflection points. An inflection point occurs when the value of a firm rises suddenly because of factors that include reduced risks, sanctioned standards, and verified predictions. It is when investors see that these key milestones have been met and the company’s valuation gets a boost, that the investors are ready to take a closer look at it.

    Early-stage Funding Activities are getting busier

    Indian investors’ profiles are evolving rapidly, as when more money flows in, more start-ups take-off, and exits get even more attractive and innovative. It is no longer only senior executives and affluent firm owners who are flocking to investment networks and writing checks to get in on the action; it is also mid-level employees, well-paid tech aficionados, and traditional stock market investors. They are the main drivers of the frenzied activity taking place in the early-stage funding market. In the past year, for instance, 455 start-ups received seed and Series A funding.

    The biggest complaint in the investment landscape in India has always been that while there are many ideas and people with potential, access to capital is still not as easy as it is in other developed economies. However, now as things appear to be changing, a large number of previously rejected proposals are likely to be funded, provided of course that they have value to offer.


    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.


    Conclusion

    This implies that an entirely new chapter is about to begin and bootstrapped companies, already well-adjusted to market risks and possessing proven potential for growth (and responsible growth at that) will see great opportunities.

  • Why Investors Are Investigating Top Executives?

    The top executives of a company are some of the most important people for their business. The CEOs, CFOS and other executives are actually responsible for the overall success of a company, all the significant decisions are taken by them and they are the people that keep the business together. However, we all know ‘Teamwork makes the dream work.’ Apart from the executives being the brain of the company, the employees are also the heart and a business needs both for their survival.

    An employee can be said to be the most important asset of an organization, they are the ones with whose help the proper functioning of a business can happen. Although, they are the subordinates of the top executives they are as important as them. Plus the executive’s behaviour in real life shows their actual character; their behaviour makes them the person they are. Recently, a few actions of some top executives with people of lower rank have created big controversies and they are on the end of receiving backlashes. Companies are surely suffering because of that, images of those companies are crumbling down and investors are now in turmoil about who to trust and who to not.

    Therefore Investors now have decided to launch investigations to examine the behaviour of founders, CEOs and other executives of a startup in their daily lives. In this article, we will find out what has led to this situation and how investigations are conducted. So without any further ado, let’s get started.

    “The way your employees feel is the way your customers will feel. And if your employees don’t feel valued, neither will your customers.” -Sybil F. Stershic

    The Controversy of Ashneer Grover
    Similar Past Incidents
    Why Investors are Investigating Top Executives?
    What Are the Important Things Investigators Are Investing?

    The Controversy of Ashneer Grover

    This entire situation started when an audio clip of Ashneer Grover, the co-founder of BharatPe was seen doing rounds on social media where it can be heard that Grover is insulting, threatening and abusing a bank employee. Although the co-founder of BharatPe denied the accusation, Kotak has decided to take legal action against Grover for hurling abuses and using inappropriate language while communicating with the bank’s employee.

    A few days later an email exchange between Hashjit Sethi of Sequoia India came up where again Grover was seen using abuses while conversing with the former. Post this scenario, Ashneer Grover decided to take a leave of absence for two months.

    Similar Past Incidents

    The case of Ashneer Grover was not the first one and it is certainly not going to be the last, as similar incidents are surfacing recently. As we dwell deeper, there are instances where these types of the same situations have occurred in the past. Some of the incidents are:

    • The former CEO of Flipkart, Binny Bansal shocks the world when he resigns from his position after he faced allegations of serious personal misconduct in 2018, an investigation was conducted followed by the allegations.
    • In 2018, ICICI Bank’s then CEO and managing director Chanda Kochhar faced allegations of nepotism and multiple agency probes against her, this situation led to her quitting her job.
    • Another instance happened when Manu Sawhney, the CEO of ICC was instructed to go on leave when an investigation by a UK based agency happened where it shows his behavioural misconduct. He was allegedly behaved arrogantly and was firing employees without any proper reason plus he was also bullying many staff members. This led to an investigation and he was asked to go on leave.
    • In 2022, fashion E-commerce site, Zilingo suspended Ankiti Bose, the Chief executive and  Indian founder of the E-commerce site for some alleged irregularities in the accounting part of the company. This has led to her suspension which is valid till 5th May 2022.

    Why Investors are Investigating Top Executives?

    The step was taken after the controversial situation of BharatPe’s Co-founder Ashneer Grover arose. Investors are now concerned so they are taking the help of investigating firms and forensic teams of known accounting companies to conduct an investigation on the behaviours of top executives. These things are done to make sure:

    • There will be no controversies regarding their behaviour which may lead to a bad image of the startup.
    • To decrease the chances of fraud-related issues in the company in the future.

    Misbehaviour of top executives is actually a red flag for the investors that things might go wrong in the near future if they carry on with their behaviour. If a wrong executive is hired, it will harm the brand image of the company.

    What Are the Important Things Investigators Are Investing?

    A person behaviour’s toward their subordinates or the people who are of lesser rank shows the actual personality of a person. A startup depends on the hard work and the passion that can be found in the executives but its image also depends on the character of the key executives. The work culture of a company is extremely important. The key things of executives that are getting investigated are:

    • Their behaviour with their subordinates.
    • Their social media behaviour and if they are getting into petty arguments that are not necessary.
    • If they have any illegal substances with them or consume them.
    • If there is any traffic violation done by them.

    Conclusion

    Just because someone is in a higher position doesn’t mean that they have the right to misbehave with others. Being humble and kind is never a mistake; in fact, it gives a safe feeling to your subordinates that they are in the right company. Toxic culture will only lead to bad performance as well as a bad image of the . also helps in strengthening the brand image of the company.

    FAQs

    Why are investors investigating top executives?

    After the Ashneer Grover controversy, many investors were worried about getting their brand image tarnished which led them to investigate top execs’ behaviour.

    What are the things investigators are investing against the top executives?

    Investors are hiring firms to investigate the behaviour of founders and top executives on social media and their behaviour towards their employees.

  • 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.


    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.


    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.