Sequoia Capital makes visible what they look for, both in a company and in a business plan. It is rare to find an A-list VC being this open – this is a great resource, especially for first-time entrepreneurs. 0
Nishith Desai on Tax, Law and Strategy in India
Nishith Desai is an international lawyer and tax consultant and I recently caught up with him to find out about tax, law and strategy in India. This is a two-part interview. In Part-1 he talks about his entertainment law practice (clients include Amitabh Bachchan, Disney, Shekar Kapoor and others) and about Venture Capital in India. […]
Strategic Investors – When and how
With the flurry of venture money pouring into India, the other class of investors that are equally upbeat is strategic investors and corporates. I have met a few entrepreneurs who have received “investment offers” from these investors, and especially in absence of any pure financial offers, the option seems compelling — “they will put in […]
God is in the detail
Had a couple of very hectic weeks with TiECon and couple of our partners visiting India. The opportunity to go around, see 10 “shortlisted” companies with some of my partners last week gave a good sense of contrast between what is expected in a mature venture system like the valley, and what is available here. […]
Do you really need an investment banker?
I made a blog post on this oft-asked question on my blog. Cross-posting it here for inviting comments/thoughts on the topic from the VW community.
Why VCs need to make money, and how
Just saw a couple of side discussions on some comments posted elsewhere on VW. Am bringing this up as a main post as it might be of interest to others as well. Rad said What applies to the rest of world, doesnt apply to India. Everybody – Indian Entrepeneurs, Indian VCs, Indian Angels need to […]
Venture Investing – Momentum versus Value
The merits of value investing, especially in public markets, have been long espoused — thats the stuff legends are made of in that domain. Even late stage private equity follows largely the same route. Venture investing, on the other hand, is all about having the right momentum — how fast can you go from no […]
Insanity
I see plans where there is no company, a one man army. There are obviously no customers and no revenues. There is a spreadsheet which shows an exit valuation of $50MM. The entrepreneur wants to raise $1.4 MM and is prepared to invest the princely sum of $10,000 including money from friends and family. Obviously […]
Term Sheets
The biggest negotiation is the Term sheet 1. Abbreviated v/s Industry Standard 2. Used to negotiate full deal structure with legal advice 3. Question of exclusivity 4. Key terms to negotiate (besides price) a. Participating preferred b. Full ratchet anti dilution c. Large liquidation preference d. Veto/controls Some links to industry standard term sheets NVCA […]
Venturing Forward – Valuation
A VC serves two masters. Investors in the VC fund and entrpereneurs. Normally the way VC’s get paid is 2 and twenty. 2% of committed capital as a management fee and 20% of profits. 80% goes back to investors. Valuation must be managed through multiple dependent rounds of financing while considering 1. Ability to attract […]
Venturing Forward – Mistakes
Common mistakes while raising venture capital 1.Lack of focus on People People People 2. Insufficient Time 3. Failing to Generate Investor Competition 4. Staying Domestic 5. Price as the only criteria 0
Venturing Forward – VC Myth
Myth : VC’s are risk takers Reality : VC’s are in the business of identifying and mitigating risk through due diligence, valuation, term sheet – economic provisions, control provisions. The VC process is slow deliberative and based on lots of information 0