7 Investor Podcasts Cover the Series A Gap

In 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, entrepreneurs (and investors) need to find a way to mitigate the Series A gap. There’s clearly a Series A gap, with 50,000 to 70,000 seed-stage investments happening while only 1,200 to 1,500 Series A’s take place. Each of the following investors recently discussed this situation with me, along with other current entrepreneur-investor issues, during 30-minute podcast interviews. Startup entrepreneurs who need financing must be mindful of the Series A gap.

Nate Redmond, Managing Partner at Alpha Edison, a VC who has put trust-driven ventures at the center of his investment thesis. It’s a very interesting conversation for both entrepreneurs and investors to listen to.
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1Mby1M Virtual Accelerator Investor Forum: With Sunil Bhargava of Tandem Capital (Part 5)

Sramana Mitra: I make a very clear distinction between real unicorns and pseudo-unicorns. The problem is there are a few unicorns in the market that are legitimate and it’s full of pseudo-unicorns.

Sunil Bhargava: I agree. It’s always interesting to hear those stories. They’re very educational into what is what for them. A friend of mine built a SaaS company, which made $5 million a year in revenue and then sold it. They have a very nice lifestyle. That’s not a bad thing to do.

Sramana Mitra: We have case study after case study of companies that have built incredibly good self-financed bootstrapped businesses at this point. >>>

1Mby1M Virtual Accelerator Investor Forum: With Padmaja Ruparel of Indian Angel Network (Part 3)

Sramana Mitra: Sapience was our portfolio company as well. What about the more recent ones? What have you invested in the last couple of years?

Padmaja Ruparel: There is LogiNext which is in the logistics space partnered with Sapience. If you look at FarEye, they are tracking logistics. This is a completely real-time tracking system. They partner not only with e-commerce players but a lot of other B2C players. There are companies in the agri space that have grown.

In India, the marginal farmers don’t have money for capital equipments. Companies are bringing the equipment on a lease model. The small farmers are able to rent out these equipments by the hour. It’s like Uberization of farming equipment. It’s very interesting >>>

1Mby1M Virtual Accelerator Investor Forum: With Sunil Bhargava of Tandem Capital (Part 4)

Sramana Mitra: There’s a lot going on in Vancouver, especially because the Visa situation is a much easier one in Canada. What are some of your notable companies? You’ve mentioned a few along the way. Have you had exits, for instance, that you want to discuss?

Sunil Bhargava: It’s too early for big exits. In fund two, Outdoorsy is going to go out and raise its Series B. They’re doing phenomenally well. One of the things exits and acquisitions are coming at much bigger valuations. Some of our companies are getting to the Series B level. A lot of them are getting to the Series A level.

In fund two, we had a company that was based out of India. Most of the team was in Bangalore. It’s in the gaming space. They >>>

1Mby1M Virtual Accelerator Investor Forum: With Padmaja Ruparel of Indian Angel Network (Part 2)

Sramana Mitra: Let’s talk a little bit about geography as it pertains to IT and IT-enabled services. That includes healthcare IT. Our audiences are focused on IT-enabled services. One core algorithm that we have picked up from the way Indian investors are operating by working with them is that they like all the SaaS, cloud, AI, and all of these companies to be facing the US market or the global market.

When it comes to those kinds of ventures, they prefer that these companies do not sell into the Indian B2B market. They want the B2B SaaS to be sold to the global market. Of course, there is the consumer B2C products that are India-facing that people are still interested in. >>>

1Mby1M Virtual Accelerator Investor Forum: With Sunil Bhargava of Tandem Capital (Part 3)

Sramana Mitra: The numbers that you quoted like $1 million to $2 million investment in a $5 million round, from the universe that we operate in, people are not ready to raise a $5 million round before a Series A usually. That’s what I find a bit confusing in how you position yourself as a fund.

Sunil Bhargava: $5 million is at the top end. We’ve invested in a company that ended up getting into YC. They raised $3 million when we put in some money. Now, they’re going to raise a $6 million round. The key thing is they didn’t have an operational system in place. They built some stuff. They got some prototype done, but they didn’t have a clear path to scale. >>>

1Mby1M Virtual Accelerator Investor Forum: With Padmaja Ruparel of Indian Angel Network (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 Padmaja Ruparel was recorded in December 2017. 

Padmaja Ruparel is Co-founder, Indian Angel Network (IAN), and Founding Partner, IAN Fund. She has been a key player in shaping India’s still somewhat nascent startup eco-system. Those interested in Indian startups and the funding trends should read on.

Sramana Mitra: Tell us about Indian Angel Network and the journey you’ve had building it. What is going on there now? What is working? What is not working? What have you learned through this process? >>>

1Mby1M Virtual Accelerator Investor Forum: With Sunil Bhargava of Tandem Capital (Part 2)

Sramana Mitra: The question is more about trends. In the companies that you’ve seen, what are people working on that are interesting?

Sunil Bhargava: It’s extremely broad. We have companies in the construction space. We have companies in the food space. We have companies in the transportation space. Now you hear a lot about Blockchain. I think it’s a very wide spectrum. The best way to get a better sense of the breadth of the companies is to go and look at the variety of different types of problems that are being addressed by a single YC class. You look at that. There are a hundred companies in there. There are B2B and B2C. >>>