I was speaking to a successful entrepreneur and angel investor yesterday about the evolving angel investment climate in India. He voiced a concern that seems to strike a chord – that while many successful entrepreneurs in India are involving themselves in angel funding, and even setting up early stage funds, there is a tendency to “rise above” building companies and a resistance to acting as a peer to budding entrepreneurs. Many successful entrepreneurs seem to graduate over, and consider it below themselves to roll up their sleeves with a rookie. Conference speeches take over garage whiteboarding.
In his view, this is a key gap in Indian angel ecosystem (to the extent it exists) and I agree. Perhaps too much of a class systems amongst entrepreneurs? Whats your view? How can we get the right mentors active in guiding new companies?
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Good Point Alok! I would however argue that the best Angels stay in the background. It’s like teaching a young one to cycle. First, you do it (make the journey as an entrepreneur),then you tell how to do it (talk about your experiences and your REAL success formula- at events and even on one-on-ones), and then you invest ( your money, buying trainer wheels for the bike and your time, in holding the seat and offering a push when needed). Now since, most of this happens in the background, neither a successful entrepreneur nor a committed angel ever mentions the last part. Entrepreneurs are typically too focussed on the road ahead,(VC Funding, getting the scale, etc.) on learning how to stay on course and not fall off, and angels too busy chasing behind the successful ones to collect on their investments and finding new entrepreneurs to mentor. A little appreciation from both about each other’s roles, would actually ignite greater action in the eco-system, rather than the doubt and dis-belief that dogs most such relationships.
Firstly I believe this is pertinent question. Given the statistically small number of angels in India, “in as much as it exists,” we have to be careful to draw generalizations. In the US, Angels range from dentists looking to invest spare cash to Ron Conways who get hands on. So not sure why Indian angels wouldn’t run the gamut. Firstly not every entrepreneur wants his angel rolling up his sleeves and getting down and dirty in their business. And all too often many of the new [tech] entrepreneurs in India are raw, even as engineers, not just as business folks – so it is hard even for a motivated angel to get hands on with all his “investee” companies. In full disclosure as an active entrepreneur and passive investor, its hard enough keeping up with one or two companies. Angels can certainly help by identifying and bringing mentors, if they can’t mentor themselves.
Rather than Angels not wanting to dirty their hands, could it be that they don’t want to sully the serenity of the virgin ideas of upstart founders?
Not for nothing people say “ignorance is bliss”. While you are a startup, wet behind the ears type, you are focused on the product, scalability and its marketing. You are not unduly bothered about compliance, taxation, valuation etc. The more wary you are, more cautious you get and that means less disruptive thinking. Having been on both planes (as a startup founder and later as investor), Angels would rather stay away and let the founders run the show and deliver. Perhaps Angels fear their strategic intervention could adversely affect the level of disruptive innovation the venture could possibly achieve.
probably the cost of successful entrepreneurs goes up and it probably makes less sense to involve in day to day operations and makes lot of meaning to get involved in growth and larger initiatives which drives successful entrepreneurs towards fund raising and investment side of the business.
Someone who would roll up their sleeves would start something again on his own.
is it a confessional note?