Info: Delhi based IT Professional. A good sports women , represented school at state level. Graduated from Delhi University, likes to achieve a lot and give back to society. She likes to volunteer in social events, festival, plantation events, donates regularly. Likes to analyze start-up ventures and invest in them. Besides love Real Estate business and investment in stocks. Down the line, like to start a apparel venture and prepare apparel at no-profit no-loss model to help rural areas.
Q1. How do you interact with the founders before and after investing ?
I go through their profile and stratify, how dedicated they are. After the investment, have a weekly call and visit their office once in a month. Keep a track of service and reviews by end users.
Q2. Do you have a preference to invest in ventures having the founders from big institutions like IITs or IIMs ?
It’s not necessary for me. Anyone can have an great idea and out the box approach. Even Steven Jobs could not finish his graduation but the has made the history in personal gadget segment with his fantastic ideas and his dedication to achieve the goals.
Q3. How do you analyze on whether to seed fund a start-up ? What are the key points that are required by them ?
First of all, I do due diligence of the concept and validate the demand of the solution being put up on the table & the problem it is solving. Also interview some of the targeted end user to understand the demand and supply solution.
Q5. How much of an importance does the b-plan play in getting a fundraisers attention ? If the b-plan is not up-to the mark, would you fund a start-up on the basis of their idea and curve their b-plan according to you for a better success ?
It is a vital portion that plays role in my attention but since I am more of a practical person and investment for me is not only a business ,so I always take up curving the plan B for them according to their pitch and targets.
Q6. How do you decide on, how much to invest into a venture ? Do you take into account the amount/money the team is asking for ?
My strategy is to invest 10 to 25% of the valuation in single venture. While deciding on the amount, I focus on cost of manpower and marketing expenses,
Q7. Could you explain the simplest form of how an investment and its returns work ? What do you do if a venture cannot give you the returns they promised ?
As per me, higher the risk, higher would be gain/loss. Guaranteed return is only possible in government funds and fixed deposit. Although it is safe however return will be always less (8-10%). So I balance my portfolio by investing in stocks, real estates and start-ups. If the Team is strong and dedicated, it will surely achieve the goal. In case, a venture can not give the returns as promo sited. I am okay with this. Victory and defeat is the part of life, so is the case with business.
Q8. What are the pros and cons of taking an investment ? Since investment is a hype in start-ups, when should & shouldn’t a start-up look for investment for their venture ?
Taking investment is good. In this case, you can help your friends or investors too. To start anything new, we need capital. It can be from banks, friends or investor. In India support to a start venture is comparative low and government policies does not help much like other countries. So getting fund from investor is the attractive option.
Q9. What are the insecurities felt by the investor while investing in a venture ? How much does a strong team help to ease this feeling ?
The ratio of success is not so good if we see the count of start-up launch every year. In fact, all depends on the team and their hard work.
Q10. What is your investment timeline ? How many start-ups do you work with or invest in at a time? Do you prefer investing in ventures whose domain you have a strong knowledge about, or the ones which solve big real life problems ?
I like to explore all available options. As I said I like more about real estates, IT, food store chains.
I am open to all domains. If the concept is good, I don’t mind putting my hands in multiple ventures.
Q11. List 3 things make any investor invest in a startup, and till now in how many startups you invested ?
- How big real time problem they are solving and market size.
- Is model revenue generated since starting.
- Founding team.
Till now I invested in three startups , recent one is in investment is in LocalRamu, and I am much happy with my this investment, as you know LocalRamu is doing well.
Q12. Why you started investing in startups ? What fascinated you towards it ?
As I said higher the risk, higher can be gain/loss. Some of the start-up has given multiple fold returns like Uber, Alibaba. So do due diligence and go for it.
Q13. Has any of your invested startup failed ? If so, what things you learned from it ?
Yes, like everyone I too had a story. One of our venture failed in Year 2012. What I learn from it is that plan well and it’s must go the same way in execution. If you fail to plan then you plan to fail
Q14. 5 most important things you believe plays important role in getting a good investment from investors like you ?
- A solution to a significant problem.
- A team to kickstart.
- The Vision of the team.
- My interest of the business domain.
- The ethics and discipline.