Sramana Mitra: How do you process the current investment climate where capital is moving further and further upstream? How does a seed investor mitigate the Series A gap? Clint Chao: It’s a great question. It’s clear that your traditional Series A investors have raised the hurdle, if you will, on what qualifies as a viable
Sramana Mitra: We are in 2018. A lot of stuff has already been built. Relative to the amount of capital that is available in the market, there are 700 plus micro-VCs in the market right now. There is a huge number of entrepreneurs who are starting companies. We can’t expect that every single venture out
Sramana Mitra: How big is the fund? Clint Chao: Our first fund is a small fund. It’s a $10 million fund. We launched that officially in 2015. We did a first close on our second fund late last year. That’s a $50 million fund. Our initial investment in fund one averaged around $250,000. We reserve
Sramana Mitra: When you look at the Indian geography, what is the distribution of deal flow that you’re seeing? Is there a bias towards Bangalore? I know Chennai and Pune have done well. Ben Mathias: It’s pretty scattered. Bangalore, for sure, is the leader in terms of the number of companies. We do see a
Sramana Mitra: We see a ton of companies outside of the Bay Area given what we do and our global nature. The other day, there was a security company from Capetown, South Africa pitching at the roundtable. It’s very encouraging and heartwarming to see how much of the knowledge of what we used to do
Sramana Mitra: In terms of deep technology companies, could you share one or two examples from your portfolio or from your radar that are interesting global potential. Ben Mathias: I’ll talk a little bit about one of the companies I mentioned a few minutes ago, ActiveAI. This is a technology company that is building solutions
Sramana Mitra: Double-click down for us into the B2B investments that you make. What sectors of B2B are particularly interesting? Where do you have expertise? Clint Chao: When we say B2B, we’re essentially looking for companies that sell their product or service to other businesses. We’ve created our own investment thesis that we call Reimagine
Sramana Mitra: Do you invest in B2B ventures that would be Indian B2B-facing? Ben Mathias: We do. Most of our companies started with their initial customer base in India. At the end of the day, the Indian B2B market is limited. You could probably get to a $20 million ARR company if you focused on