Sramana Mitra: What stage did you get involved in either of these companies? Deb Kemper: For both of them, Golden Seeds was in their initial seed financing round. On one, I was on the seed. On another, I got in a little bit later. I didn’t invest the first time it came around. Sramana Mitra:
Sramana Mitra: Let me double-click down on a couple of things before we go much beyond. First and foremost, talk a little bit about your business model. The price point that you described – $25,000 per customer – indicates that you need to sell this product by telesales. Is that correct or did your average
Sramana Mitra: You are preaching to the choir. It’s exactly our philosophy. We have a very clear philosophy of bootstrapping first and raising money later. We don’t take any equity. We are the largest virtual accelerator and we don’t take equity because I don’t believe you should be taking equity as an incubator or accelerator.
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AI and Machine Learning startups often face a fair amount of engineering and data challenges, which tends to make it expensive to build the product. It is difficult to build such a company as a lean startup. A natural question that comes to mind is how to get such startups off the ground? This question
Sramana Mitra: What is the earliest stage at which they would go in? Would people go in with no product and just a concept? Deb Kemper: People would go in before validated product market fit. It’s between the concept and having that. At least a beta. We rarely go in on an alpha stage. We
Sramana Mitra: The corollary of our previous saying is that VCs love to come to the rescue of victory. That is also a very popular saying in our community. SC Moatti: It’s a very interesting point that you mentioned. What you’re saying is the traditional VC industry has whales and minnows. Some people are here
Sramana Mitra: How much runway did you have to raise money at this point? Jyoti Bansal: I had runway. I was managing the expenses carefully. Even though we had funding, I kept the team to less than 10 people until we got to the first set of customers. Once the first set of customers came