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 product to a beta to some customers to sales rampup. The difference perhaps arises due to higher state of uncertainity in venture markets, as well as higher return expectations.

The difference should be understood while pitching to potential venture investors. It is important to demonstrate and plan for momentum, rather than worry too much about the specific valuation, or try and give that up too early. Venture investing is not about getting a 10% lower valuation. Its about getting a 50% faster company.

Alok Mittal

Alok is a first generation entrepreneur, currently CEO and Co-founder of Indifi, a platform for small business lending.

Alok is a board member at TiE Delhi, and a founding member of Indian Angel Network.

Prior to Indifi, Alok ran India venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Earlier, Alok cofounded, a leading job portal which was acquired by Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.