Sramana Mitra: What about unicorn mania? I know India went completely crazy with unicorn mania for a while. Are you seeing a slowdown in unicorn mania? As a seed investor, how do you prevent yourselves from getting buried under later-stage liquidation preferences? What practices are you deploying to prevent such unappetizing outcomes? Anirudh Suri: Unicorn
Sramana Mitra: I have a question that I want to double-click on. One of the big differences in the Indian market that doesn’t exist in the US market is this abundant supply of cheap labor. Are you seeing business models and business ideas that creatively take advantage of that phenomenon to offer value to customers?
Sramana Mitra: It sounds like the original business model probably had a low TAM. Turning it into a financial institution opens up a much bigger TAM, right? Anirudh Suri: The initial focus in the Indian market is on affordable housing institutions and micro-financing institutions. Very quickly, they realized that just providing them credit scores was
Sramana Mitra: This is your first fund, right? Yanev Suissa: Yes. Sramana Mitra: Have you had any exits yet? Yanev Suissa: No, we’ve been investing for about a year. Sramana Mitra: Next question is about unicorn mania. How does a seed investor protect themselves in the event that there is huge amount of capital being
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Anirudh Suri was recorded in December 2017. Anirudh Suri, Founding Partner at India Internet Fund, talks about the funding trends in the Indian startup market. Sramana Mitra: Help us introduce you to our audience.
Sramana Mitra: In this continuum of de-risking, where are you playing? Yanev Suissa: All of these things are reasonable factors that any VCs would look at including us. But to build an investment thesis of only investing if certain factors exist is not logical. We invest whether you have revenue or not, whether you have
Sramana Mitra: How do you process the current investment climate where capital is moving further and further upstream with all these larger funds wanting to invest in much larger Series A deals, how does a seed investor or entrepreneur mitigate the Series A gap? There’s clearly a Series A gap. 50,000 to 70,000 seed-stage investments
Sramana Mitra: There are plenty of VCs focusing heavily on revenue numbers in the seed stage right now. Yanev Suissa: I remember I qualified it as who I know and who I respect. Sramana Mitra: I think I’d beg to differ there. There’re plenty of good VCs who are also focusing on revenue numbers at