Nagpur: “When an Angel investor or a Venture Capital fund will invest with you, it is seldom on the basis of your finance statements and estimated profits. We look at two things mostly – how sound is the idea; how many people will it impact? And, how passionate and committed to the company are the founders? ” Unexpected notions that took the audience by surprise when Mahaveer Sharma Director and Founder of RAIN (Rajasthan Angel innovators Network) spoke at the Tiecon first day’s meet on 24th October.
One more factor is very important, and again unexpected.
“Has this individual failed in a start up idea before?” Well, if he has, that adds another feather in his cap and makes him/ her more investment friendly! Two failures? Even better.
So in the new lexicon of business, having failed is no shame. It is assumed that you have learnt from that experience and won’t make the same mistakes again.
Mahavir also disclosed that out of 100 start ups, they expect only one or two to do well and flourish.
“That is that one company who makes it worth our while to be in Angel funding. Otherwise we consider ourselves philanthropists who invest for the larger good of society.”
That does not mean of course that they write their money off. Most often an investor will exit the company when a bigger fund takes over – when the incubation stage is over and the ‘accelerator’ stage has begun and company needs more finance.
They look at a time frame of 3 – 5 years for staying with a new company – then they exit.
“We do not invest more than 10% at a time – but enough to meet the requirement of the time.”
Angels do not just invest; they do hand holding and also advise.
“According to my experience, it is those who persist, evaluate and adjust their path, evolve, change – but do not give up, who ultimately succeed.”
Mahavir is also Founder/ Owner of seven other companies like oscarexpo; swishin,in; sraja.in; snowplanet.in etc. – so he clearly knows what he is talking about!
Based in Jaipur, he stated categorically that where your start up is based – in a small tier two city like Nagpur or a metro like Mumbai does not matter. So if you have a sound idea, and passion to back it – go for it! Do not use the excuse that it was being in Nagpur that held you back.