For the past 18 months I’ve been on the road selling the India venture story. It’s been quite a process. The process of raising money for a fund makes raising money for a company with revenues and profits (even losses) so much easier – at least you have data and a product to showcase!
Raising money for a fund is all about finding a group of people who believe that you will be able to build a business, out of an idea, that in the future, may over time, generate revenue and profit and hopefully create returns. It’s a unique journey, but more on that in a future post.
While selling the India venture story, I often get asked, “That’s great, but what about exits?” After hearing the question a few times, like all good entrepreneurs I learned that it was not going away and I would be better off tackling it head on. So we analysed the data to show that while investors may have heard similar stories seven years ago, things were different.
How? Two factors drive liquidity – IPOs and acquisitions. Both are facilitated once companies achieve a certain scale.
How consumers are wooed is going to change in 2017. And a few spaces will have a advantage. Here’s what I see flourishing.
When you invest early in a company’s life cycle, there is such a lack of information available, so much of an investment decision at this stage is based on the founding team and prior investing experience. The earlier you invest, the more experience you need.