Rahul Chandra: One of our companies is called Jar. There is a very big question about whether the segment of 400 million UPI users that Jar is targeting and investing for is just a dream. For them, investing needs significant capital saved in the bank. India is a credit-hungry market. Are people even thinking about
Rahul Chandra, Managing Director at Arkam Ventures, is a veteran of the Indian Venture Capital industry. This discussion spans historical context to the current Unicorn mania. Great analysis!
Naganand Doraswamy: The fourth one is, we want to ensure that we have visibility for $10 million to $15 million. One of the thesis we have in the fund is to enable sub-$100 million exits for product innovation companies in India. If you want to get a $70 million to $100 million exit, you should
Sramana Mitra: Our observation is that all deep tech out of India is going to be global companies, even the non-enterprise facing. What we are seeing though is people can validate with customers in India. They can get a dozen customers, get the product validated, get some revenue before coming out to the Valley. Especially
Sramana Mitra: What is the check size that you like to write? Naganand Doraswamy: When we started the first fund, we said anywhere around $500K to $750K. Then we would participate with another $500K in the following round. The target was about $1.25 million per company. The second is double the size. We’re looking at
Naganand Doraswamy, Managing Partner and Founder at Ideaspring Capital, adds to our thesis on great investment opportunities within the sub $100 million exit space. Sramana Mitra: Let’s start by having you introduce yourself as well as Ideaspring. Naganand Doraswamy: I grew up in Bangalore. I did my undergrad there and then came to the US
Sramana Mitra: To be able to get to $20 million with $1.4 million, you have to bootstrap. That’s something we believe in and promote extensively. We are with you on this line of thinking. Like you said, these large funds can only invest large amounts of money. Otherwise, their human capital-to-capital ratio doesn’t work out.
Sramana Mitra: Excellent. Is there one that you have done from India that you would like to discuss a little bit? BV Jagadeesh: Let me take Futura. They used to be employees of MindTree. They approached me through some common connection. They hadn’t started yet at that time. They were thinking of getting into this