1Mby1M Virtual Accelerator Investor Forum: With Darshan Vyas of LOUD Capital (Part 3)

Sramana Mitra: The issue that we are seeing is that a lot of companies are not ready for a $5 million to $10 million Series A. We need funds that can do $1 million to $3 million Series A. That’s only viable if the fund sizes are relatively small. The larger fund sizes cannot do $1 million to $3 million Series A.

Darshan Vyas: Correct. I can only speak for Columbus right now. We have a good grasp of the investors that are interested in Series A. What we’re lacking are the investors that play the part we do, which is the angel investment. There’s a lack of resources to help entrepreneurs get off the ground. >>>

1Mby1M Virtual Accelerator Investor Forum: With Darshan Vyas of LOUD Capital (Part 2)

Sramana Mitra: It’s interesting to see that you guys are seeing AI in the midwest as well. It’s good to know that that’s a pervasive trend even in your part of the universe. From your fund’s point of view, what kind of ventures are you looking to invest in? What is your investment thesis and where do you really want to focus?

Darshan Vyas: We’re really interested in artificial intelligence. When we invest in companies, I try to identify companies where we can add value by incorporating our network into that company. If we can add value to that company, then we will make that investment.

Sramana Mitra: Help us understand where your network is so we can send those types of companies your way. >>>

1Mby1M Virtual Accelerator Investor Forum: With Darshan Vyas of LOUD Capital (Part 1)

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Darshan Vyas, LOUD Capital was recorded in September 2017. 

Darshan Vyas, Co-Founder Managing Director, LOUD Capital, discusses seed investing in the startup eco-system in the Mid-West from Ohio.

Sramana Mitra: Tell us about LOUD Capital. What is the focus of the firm? How big is your fund? What size investments do you make? >>>

1Mby1M Virtual Accelerator Investor Forum: With Don Hutchison (Part 4)

Sramana Mitra: Talk a little bit about your investments. First and foremost, what have been some of your most interesting and satisfying investments so far?

Don Hutchison: If I look at deals that have graduated, I would say Sugar Media would be one. They’re a software stack for managing personal media at home. It was sold to 2wire. It was a really good outcome. It helped accelerate the management and the installation of higher-order applications and fundamental broadband hardware in the home. 2wire is the preferred hardware and software on the media sell side and others would be for cable. It helped move the market forward.

At the same time, it was a very good outcome for the company and investors. Recurrent Energy is very active. I actually put a team >>>

1Mby1M Virtual Accelerator Investor Forum: With Don Hutchison (Part 3)

Sramana Mitra: We see cap notes a lot in Silicon Valley, but if you go outside of Silicon Valley, people are still using equity vary aggressively. We, very often, see terribly diluted deals at very early stages.

Don Hutchison: That is the historic nature of equity investment. The issue you’re talking about is before notes became accepted here. It was a couple of years’ process. Earlier, it was all equity here as well. You didn’t go through as many rounds before jumping to an A. If you got seed, you went to an A. There might be some bridge but the bridge usually came from the incumbents. That usually was discounted notes to the A. The clearest way is to gain traction quickly.

Sramana Mitra: We’ve been saying this. Get traction before you raise money. >>>

1Mby1M Virtual Accelerator Investor Forum: With Don Hutchison (Part 2)

Sramana Mitra: There are 70,000 seed investments a year and only about 1,200 to 1,500 venture investments. There is a huge Series A gap that people have to deal with. How do you recommend the seed investors as well as the entrepreneurs who are raising seed money mitigate the gap?

Don Hutchison: You’re going to be in a very competitive process to gain that Series A. In all likelihood, a venture fund will be a normal part of your future if you’re the kind of company that you and I are talking about. You got to have the characteristics that will appeal to that audience, although there is still room for opportunities.

We’ve seen a great increase and interest in Blockchain, Bitcoin, and all types of cyber currency. That would be something where a >>>

1Mby1M Virtual Accelerator Investor Forum: With Don Hutchison (Part 1)

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Don Hutchison was recorded in October 2017. 

Don Hutchison is one of the most experienced and long-term Angel investors in Silicon Valley. We discuss the trends of the industry and ways to mitigate the Series A gap that is a serious issue right now.

>>>

201st 1Mby1M Entrepreneurship Podcast With Utsav Somani, Angel Investor, AngelList India

Utsav Somani, Angel Investor at AngelList India, talks about the newly launched AngelList India.

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