Is your startup worth funding? Every founder asks, but few really know. Deciphering the minds of investors and unlocking the secrets of startup success
Do you find yourself lying awake at night wondering if your startup has what it takes to attract investors? Questions like “What are they really looking for?” Please ask questions. “How can I stand out from the crowd?” Are you still asking?
All founders struggle with these uncertainties. They are eager to understand the investor perspective and want to crack the code to securing coveted funding. But we rarely get a true glimpse into the mind of an investor.
That’s where TICE comes in. To bridge this knowledge gap and provide founders with a rare opportunity to get a glimpse into how investors think, we, the Chairman and Co-Founders of the Rajasthan Angel Innovators Network and TiE India We spoke to Mahavir Pratap Sharma, Chairman of Angels and Director of TiE India Angels. A member of TiE India Foundation and a veteran investor with extensive experience.
In this exclusive interview, we take a deep dive into his thoughts and experiences, exploring what drives experienced investors like him, the qualities they look for in founders, and ultimately the factors that influence their investment decisions. Masu.
Beyond economic profit: the pursuit of knowledge and innovation
While financial gain is undoubtedly an important motivator for investors, Mr. Sharma’s passion goes far beyond mere financial gain. For him, the thrill comes from continually learning and being exposed to breakthrough technologies and ideas.
He eloquently states: “New technology, new ideas, young, bright startups coming in and bringing heartbreaking technology and its impact, it’s going to have a big impact.”
This pursuit of knowledge and innovation keeps Mr. Sharma constantly engaged and at the forefront of technological advancement. He recognizes that the world is changing rapidly and that technology plays a vital role in driving this transformation. By investing in promising start-ups, we not only contribute to their growth, but also keep abreast of the latest trends and developments.
The element of surprise: unconventional investments that defy expectations
Throughout Mr. Sharma’s investment journey, he has come across startups that are disrupting conventional wisdom and exceeding expectations. He fondly recalls one such investment in a young team that aimed to revolutionize social interaction in restaurants, bars and clubs through IoT devices and social media apps. Despite initial skepticism, the venture was a huge success, defying naysayers and growing to become a top 10 app at the global app level.
This example highlights Sharma’s belief in the importance of looking beyond the obvious and recognizing the potential of unconventional ideas. He emphasizes the need to trust your instincts and evaluate startups based on your understanding, even if it goes against popular opinion.
Navigating uncertainty: embracing the unpredictable nature of the startup world
The startup ecosystem is inherently uncertain, constantly being reshaped by rapid technological advances and changing market dynamics. Recognizing the challenges posed by this unpredictability, Sharma recounted examples of promising startups facing unexpected setbacks or succumbing to competition.
This situation emphasizes the importance of adaptability and resilience. Startups must be prepared to pivot, evolve, and stay ahead of the curve to survive and thrive in this ever-changing environment. As an investor, Sharma looks for founders with the tenacity and flexibility to navigate these uncertainties.
Beyond the pitch: specific qualities that define promising founders
Mr. Sharma receives numerous proposals every day, but only a select few are able to move on to the next stage. He has a rigorous filtering process that evaluates not only ideas and technologies, but also the founders themselves. He is looking for people who are strong, tenacious, and able to handle the immense pressure and stress that comes with the startup journey.
In his own words, “It’s very important that they can handle stress. I make sure they can handle pressure, and then I make sure they can perform under pressure.”
He believes that a founder’s resilience, leadership skills, and ability to make sound decisions under difficult circumstances are essential to success.
Tug of War: Balancing emotion and logic in investment decisions
Investing is more than just a financial transaction. It often involves some level of emotional connection and personal bias. Sharma acknowledges the internal conflict between emotion and logic when evaluating investment opportunities. He emphasizes the importance of maintaining objectivity and seeking external validation from unbiased sources.
He advises startups to take a step back, gain perspective and evaluate their business from a distance. This allows you to make decisions based on sound reasoning and market realities rather than emotional attachments. As an investor, Mr. Sharma strives to be passionately involved yet emotionally distant, making decisions based on logic and pragmatism.
Add to the chaos or seek a quick exit: A flexible approach
Mr. Sharma’s investment approach is adaptable and changes depending on specific sectors and opportunities. He is open to both nurturing disruptive companies for the long term and identifying high-growth startups with potential for immediate exit. His decisions are driven by a combination of factors, including market trends, the venture’s potential impact, and his own evolving views and opinions.
This flexibility allows him to take advantage of diverse opportunities and contribute to the growth of startups across different stages and sectors. He recognizes that the startup ecosystem is dynamic and investors need to be agile in responding to changing market conditions.
The influence of a mentor: Taking a startup from zero to one
In addition to being an investor, Mr. Sharma is also an entrepreneur and mentor. His experience in building and expanding businesses provides valuable insight to help inform investment decisions. He is looking for founders who are open to his guidance and have the potential to learn and grow.
He describes his approach as “multidimensional,” encompassing a comprehensive assessment of founders, teams, products and services, and the broader ecosystem. He is looking for people who are not only passionate and motivated, but also able to make smart decisions and collaborate effectively.
Embracing failure: A stepping stone to success
Although failures abound in the startup world, Sharma doesn’t see them as a disqualifying factor. He believes failure can be a valuable asset when accompanied by learning and growth. He looks for founders who have the resilience to bounce back from setbacks, apply what they’ve learned, and emerge stronger.
In his own words, “I have no failures, no shortcomings at all. To me, the things I have failed and learned from them are far more important than the things I have not failed or the things I have succeeded in.” ” This perspective encourages entrepreneurs to embrace failure as an opportunity for growth and development.
Inside the mind of an investor: A multifaceted perspective
When asked what’s on the minds of investors, Sharma offered a frank and multifaceted perspective. While financial returns and the potential for success are always at the forefront, we also emphasize the responsibility that comes with investing in early-stage startups. He sees himself as a nurturer and guide, helping young entrepreneurs overcome the challenges of their startup journey.
He emphasizes the importance of honesty, transparency, and providing constructive feedback, even if it means conveying a tough message. He believes this approach benefits both startups and investors and fosters a culture of learning and growth.
Mahavir Sharma’s insights into the world of startup investing provide a valuable glimpse into the mind of an experienced investor. His passion for knowledge, willingness to embrace unconventional ideas, and emphasis on the human element in investment decisions set him apart. He recognizes the responsibility that comes with investing in early stage ventures and embodies the spirit of mentorship and guidance.
As the startup ecosystem continues to evolve, Mr. Sharma’s wisdom and experience will serve as a guide for aspiring entrepreneurs and investors alike. His story is a testament to the power of resilience, adaptability, and the unwavering pursuit of knowledge and innovation.
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