Improvements and pivots may also help startups survive difficult instances, says know-how evangelist and angel investor turned VC Sanjay Mehta, founder & companion at 100X.VC – India’s first enterprise capital agency to spend money on early-stage startups utilizing iSafe investing documentation. Mehta has invested in over 130 firms in India and the US together with Oyo Rooms, Block.One, Box8, CoinDCX, Unbxd, FabAlley, LogiNext, WowMomo, Coolberg and Zippr. “At 100X.VC, we’re on a mission to simplify the funding course of,” he tells Sudhir Chowdhary as he discusses early stage funding dynamics within the present instances. Excerpts:
Inform us about your entrepreneurial journey and what number of firms you could have invested in?
As an investor, it has been a financially rewarding journey with 4 unicorns within the portfolio. In 2010-11, I used to be launched to angel investing by my mentor Harish Mehta (founding father of Nasscom, Onward Applied sciences). I began assembly entrepreneurs, main funding offers, serving to entrepreneurs navigate and scale companies. Quickly, I grew to become a dependable particular person for know-how offers in Mumbai’s angel investing circles. I’ve invested in over 150 startups in India and globally.
At 100X.VC, what are the factors for choosing startups? Why do you assume first-cheques are vital for budding entrepreneurs?
100X.VC is on a mission to simplify the funding course of. We get funding proposals from founders on pitch@100x.vc and our workforce evaluates fundamental data. We ask for a video pitch from these we like and consider the workforce, their area experience. After conducting our analysis on market alternative, competitors panorama and market development charge, we analyse the startup’s enterprise mannequin. Lastly, we conduct an inner conviction if a 20X exit alternative is feasible. The primary cheque from 100X.VC for the startup is proof that the thought is enterprise fundable, that may be leveraged for future funds.
Inform us extra about iSafe Notes as an rising funding instrument.
The usage of iSAFE (India Easy Settlement for Future Fairness) investing documentation was pioneered by 100X.VC in 2019. 100X.VC open sourced it for the whole startup ecosystem. Now an ordinary for seed-stage investing, it saves authorized value, permits quick-to-close transactions and presents founder-friendly convertible safety observe complying with all relevant legal guidelines in India. Since proper valuation discovery is hard on the seed stage, therefore iSAFE works for buyers to fund a cope with a future proper to fairness within the startup. Pre-and-post-money valuations are now not required. Earlier, SHA-driven transactions took 3-4 months, with iSAFE it takes 24-48 hours.
What’s the position and contribution of 100X.VC in making these startups prepared for the subsequent section of development?
100X.VC has turn into a launchpad the place solely firms with potential are chosen. We allow them to get higher in each section of the enterprise—from pricing and pitching to product and positioning. Founders reap the advantages of 100X expertise and connections. We help concepts with the potential for a number of rounds of funding, 100X.VC Pitch Day is the showcase to 1000+ buyers for startups funded by us the place they’re prepared to boost a bigger spherical of capital.
What number of startups have 100X.VC invested in to this point?
Now we have invested in 50 startups since December 2019 and plan to spend money on 40-50 extra by the year-end. Our goal is to have the ability to fund 100 startups yearly and construct a profitable portfolio of 500 startups by 2025. Now we have partnered with top-tier VCs to fund 100X.VC portfolio. There’s a plan to have direct and oblique investments in 100X portfolio firms from 5000+ angel buyers by 2025.
What was the influence of the Covid-19 second wave on early-stage startups? One recommendation for startups in these difficult instances?
We found through the annual 100X India Sentiment Outlook Survey that solely 47% of the startups have been experiencing development. Practically two-thirds of the founders (65%) have been anticipating seed-stage funding to extend in 2021. Although 70% of buyers stated they have been seeing enterprise development, 23% anticipated it within the coming months. About 68% have been asking their portfolio firms to be extra aggressive whereas 30% have been prompting them to take care of the established order. My recommendation to startups is to search out mentors who may also help create alternatives amid disaster by innovation and pivots.
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