My parents (both retired IAS officers) started learning Indian classical music at the age of 65. They’re taking their second year exam this year and spend hours practicing. It just goes to show that there’s no age to stop learning.
Had a conversation with a first-time founder recently, and it made me realize how we, as VCs, often assume everyone is familiar with funding jargon. So, here's a straightforward list of initial terms you'll encounter when starting to raise capital:
What a turn of events- Experienced US engineers laid off and going through extended periods of unemployment for failing "technical" interview tests are now freelancing for Indian startups - a remarkable reversal in global tech talent flow.
Seeing so many lab diamond startups these days! I want to hear from someone who’s bullish on the market- cause I cannot fathom how an asset with unlimited supply can retain value and money back guarantee?
DTC companies, listen up!- Here are my predictions of the 9 (specific) consumer products/ trends that are about to pick up in India in the next 12 months.
Intrigued by the use case: someone I know -working in Silicon Valley, earning $100k, is transitioning back to a manager role at a startup in India at ₹30 lakhs. Her reason: a $100,000 salary in San Fran translates to the equivalent of ₹21 lakhs in terms of purchasing power
Met 4 great founders this week and realized their approach to calculating ARR (Annual recurring revenue) had slight variations. So here's a thread on how founders over/under-estimate ARR :
Ever wondered what the hell VCs are talking about when they talk in acronyms? LTV, CAC, MRR?
Here's a cheat sheet for the 10 most basic metrics we measure:
Hiring alert. My favorite part of the job is hiring and getting to meet more talent!
@GoodCapitalVC
is looking for an investment analyst. If you are or know anyone who would be a good fit- apply on the link below (The job description can be found there too):
While my dad has covid, I am practicing our ritual of paper boats on a rainy day & sending him photos. It’s the little things in life that matter the most.
Here's how you should approach TAM (Total Addressable Market) if you're just starting to raise pre-seed, seed capital. Through this process: you'll learn so much about your potential and also find gaps in the market that you could provide for. Thread:
I'm back in the Bay Area for a month. It's been 5 years since I lived here and almost everything has changed. Trends have shifted from Allbirds to Hoka, from Trader Joe's to Erewhon, from Lululemon to Alo, and from unemployed engineers to experienced unemployed engineers.
As VCs, we feel revenue recognition appropriately is very crucial to understanding your business better.
Here are 14 ways startups in SaaS, and DTC models project for revenue INCORRECTLY:
Representation is so important. Gives all women, especially in finance, economics and related fields hope that anything is possible if you work hard! 💪🏼
Today marks my fourth work anniversary at
@GoodCapitalVC
. I couldn’t be in better company quite literally. Super proud of what we’ve built thus far and all the co’s we’ve backed. 💰
The DTC space is really hard to crack given how competitive the landscape is and the marketing spends to gain customers What are some things that have worked in India, and what trends may pick up globally, you ask?
Term sheet: A non-binding document outlining the terms and conditions of an investment, including the valuation, ownership stake, and investor rights. -2/n
The argument that consumer investments cannot match tech returns might seem valid when viewing the Indian market from a macro perspective. However, this view represents a superficial understanding of the complex and rapidly evolving Indian consumer landscape.🧵
DTC brand pitch: Raising seed capital for a product I spent years building, made for an underserved market
Reality: I made this cause I like it. I have no expertise in this at all, I studied how to make a viral product and here I am asking you for money to market it on Instagram.
SAFE (Simple Agreement for Future Equity): A contract between an investor and a startup that grants the investor the right to receive equity in the company at a later date. -4/n
Fun fact: if you’re overheard by Delhi women getting their hair done at a salon that you invest in start ups- they will all pitch you a “domestic help app” simultaneously.
Today marks 5 years at Good Capital! It's been quite a journey. I was in great company from the get go,
@BadCapitalVC
@R0hanMalhotra
@serarora
@maanavsagar
+ the rest of the team that showed great resilience as we scaled. But the best of all was all the founders that I got to
Mistake 9: The name! What even is 82°E? Let me tell you- the Meridian on which the Indian Standard Time is based. And this is what happens when you copy the West without changing a thing from your learnings of the Indian consumer.
Valuation: The estimated worth of a startup or company, often determined by factors such as market potential, revenue projections, and comparable transactions. -5/n
Recently , a second hand marketplace for traditional Indian clothing went out of business. It made me look back ant other models that have tried to take a stab at this space. Here's my learnings using Economics 101: 🧵
Reevaluate why you’re raising capital; Should a startup give up equity if they are profitable and growing at a rate where all they need is cheap working capital to be a successful stand-alone business?
Answer is No.
Mistake 1: Assuming ⭐️ power is enough for the premium consumer space.
Just because she was now representing many global luxury brands, the assumption was that consumers would feel its giving access to "luxurious goods". However, high level research only gives temporary results
9/Toxin-free and child friendly home care products'
Gone are the days of Lysol and the woke millennials are now having kids. They want clean and conscious products in and around their homes.
If you’re in Bangalore and you haven’t been to Lupa yet- please do yourself a favor and go. The food, vibe and drinks are a 100/100. I genuinely think it’s the best restaurant in India.
Loki was found in a garbage bin as a puppy in Chandni Chowk. He was adopted and bought home but it took him 3 years to warm up to everyone. I especially kept pushing his boundaries and demanded for his love and attention constantly. It was tough to be growled at.
Today, as he
Dilution: The reduction of existing shareholders' ownership percentage in a company when new shares are issued, often occurring during subsequent funding rounds. -6/n
Vesting: A schedule that outlines the timeframe over which founders or employees earn ownership rights to their shares in a company, typically to incentivize long-term commitment. -7/n
People attacking SEBIs chairperson don’t understand how disclosures work. She’s recused herself from decision making on matters with conflict of interest and made timely disclosures - an investment made 2 years prior to her post. This is just bizarre.
Me yesterday: Excited about
@GoodCapitalVC
launching its new AI-focused fund.
Me today: Am I investing in companies that will ultimately replace me at the workplace.
Exit strategy: A plan for how and when investors can realize a return on their investment, such as through an acquisition, initial public offering (IPO), or other means. -n/n
Completed 3 years with
@GoodCapitalVC
and
@BharatFounders
team today. I am so lucky to be with such a brilliant team that deeply cares about founders and want to make a real difference!
1/Reduce your retinol production, its time for Alguronic Acid. (its superior anti-aging properties reduce fine lines by 35%). All oceanic derived materials are showcasing big leaps in skin improvement. Its also time for ALGAE products!
4/tech meet health meet mass India-
India needs an affordable fitness tracker : ring, watch, fitbit style innovation but at a price everyone can afford!
Mistake 4: We still do not know what the USP is? 82 E did too many things without a single USP. The brand reads like a lost child in a big fare. A simple USP of ayurveda first or "made for Indian skin" would have worked far better
Mistake 2: Choosing the wrong manufacturing partner.
She chose someone who could procure Ayurveda ingredients, expensive packaging and just average quality of other components. This compromise came at the biggest cost- Quality (which brings retention)
It honestly feels great that the delivery of my DTC Brand is carbon neutral. It makes me so inclined to order from the brand webs. Ofc it’s a product I already love but id choose this website over any aggregator with a discount. Wonder how many customers feel this way?
8/ Alternate and innovative personal care
India loves its Perfora even though Colgate dominated for decades. It's time someone changes the entire experience of roll on, deodorant's (that last!) and products that have lots of layering and use-cases!
6/Real athleisure!
So far, India has seen gym-wear evolve. Its time for pants that can actually be worn to work (but affordable). Imagine Alo meets myntra-
Layman- thinking Ambani is a big fan of Rihanna and paid the big $$
Ambani’s- just acquired Sephora India, let’s launch Fenty Beauty with a Bang and come up with a commercial arrangement in person 🔑
Mistake 8: Exapanding to men before winning over the women. Men do not make purchases like women do. They rely on word of mouth far more than explorating.
Meet the newest member of my team- VC Oliver. He’s not afraid of taking risks, he’s got an obvious unfair advantage, gets what he wants so he’s a go-getter. Loves to try new products and is passionate about running. ( VC here stands for very cute.)
I am so excited to share that Oyela's raised a follow-up round led by Prime. Oyela came to me at a time when businesses faced severe uncertainty due to COVID.
Rahul's vision of revamping the fast fashion space, and understanding of Gen-Z behavior was 10/10
It is so tough for first-time founders to get into the complex nitty-gritty of transaction documents with lawyers.
Here's a Playbook to save you those billable hours:
Please RT & Share with founders in your network ~~
As FSSAI cracking down on protein supplements in India, India's consumer product market reveals a critical gap: inadequate regulation of product claims. 🧵
Hey ex-twitterati, X’s, X’ers, X-men and women,
Help me find an exciting new startups in the personal care space ~ would love to look at something fresh!
Tag in comments 👇
Mistake 5: Branding! What a tragedy is this sub-par brand manager. The brand philosophy is just as high level as the rest of it: "We believe in the power of small, consistent steps to achieve lasting results." This is true for just about anything.
3/Totes: New takes on totes are a huge market at the moment in the US. India is seeing early signs of this. Another big trend is Raffia (google it, if you don't know)
Growing up I always thought being a superwomen meant being professionally successful while being able to manage a home. Now, I think the real superpower is being happy in what you do. Whether it’s work or life or both.