INVESTMENT THESIS

Focus is vital to success, which is why we have a well-defined thesis when angel investing. We believe being open and transparent helps to create a win-win , and we expect our founders to reciprocate  


  • Clear process visibility to promoters
    • A product/service with paying customers – investment from us is for scaling, not to build a prototype
    • Committed timeline. A quick no if we are not interested. However, we will take as much time as needed to build conviction - we think of this as a marriage, not a fling
    • At least 2 promoters . Being a founder is a lonely exercise , and we think having a partner helps to improve your chances of success
    • Pre money valuation in the range 5-8 crores; first cheque of max 75 Lacs and offer to invest more if milestones are met and there is meeting of minds
    • Reference checks
  • Quantum of funding – limit first cheque so we build comfort on both attitude and execution
    • If we are not lead investors or don't have an Observer status, max 25L for first cheque
    • If we don't understand domain, max 25 L for first cheque
    • Next cheque can be big depending on comfort, even at higher valuation
  • Term sheet check list
    • Alignment on broad direction. 1 page word document that summarizes: What we are trying to achieve,progress milestones, Operating metrics should we track; key priorities for focus; funding requirements to cash break even
    • Alignment with other investors. Nominate a lead investor. No confused messaging on future direction.
    • Cash burn plan
    • Candid discussions on mutual expectations for working together
    • ESOP pool
  • Progress Review protocol
    • Monthly calls to ensure everyone is on common page. We are anal retentive about followup, as this helps the startup to establish itself on the path to success
    • MIS circulated before the call. Operating metrics, revised cash burn forecast
    • External advisors and mentors should be part of monthly calls and board meetings to ensure alignment

Post Navigation

Leave a Reply

  
Your email address will not be published. Required fields are marked *