Renjit Philip

**Exploding Myths: Not All Money Is Good Money for Startups** In the heady rush to secure funding, it's a narrative seldom challenged—that all investments are a boon. However, the right partnership with investors goes far beyond mere capital. In our recent analysis, the stark contrasts between strategic fit and merely financial injections come to light. A venture capital investor isn't just a bank but should be a partner that aligns with your startup's vision, growth trajectory, and ethos. They bring not just money but invaluable experience, networks, and guidance. As founders navigate these waters, remember that choosing an investor is as critical as they choose you. Compatibility in visions can mean the difference between scaling effectively or misaligned priorities leading to friction down the line. #StartupFunding #InvestorFit #StrategicInvesting #VentureCapitalInsights #venturebacked

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New post in https://lnkd.in/dwDE2ZVX This one attempts to address one of the issues that was raised in an earlier essay about the relevance of brands like Apple to startups. A common question, how is learning from Apple relevant to an early-stage company that is resource-constrained and simply can't match the investment a company like Apple can put into their work. I argue that overthinking is one way we can do this: "Most early-stage brands simply haven’t had the time to invest in building depth and substance which is why it’s so important to over-invest in building meaning and depth into early-stage brands, even when the results aren’t immediately visible." Full article is here https://lnkd.in/dWy3GEU2 - as always I would love your thoughts and anything you're seeing that helps

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Indian VCs offer comprehensive resources for fundraising and hiring, including investor lists, templates, job boards, and networking events. Check the link in the comment #venturecapital #fundraising #startup

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The #startup domain is generally associated with the youth, but experienced professionals also have room to make a mark. Venture capital (VC) funds investing in early-stage companies recognise that young #founders can have strengths as well as gaps in their leadership abilities. For example, many tech #innovators have not previously run businesses or managed profit and loss statements. So, while they excel in developing scalable tech solutions, they often need assistance with #business operations. Savvy founders address this by bringing in experienced #talent to build a strong business foundation, mentor the team, and provide guidance, especially during crises. I shared my views on how startups are onboarding veterans at the CXO level with The Economic Times. Read the article here: https://lnkd.in/gDZEtyib

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These are exciting times for SaaS as the market ponders the net effects of the AI era in the SaaS business model. Who will accrue more value from AI: SaaS challengers or SaaS incumbents? Looking forward to the discussion tomorrow with Megumi Ikeda, Aristotelis Xenofontos, Pascual Cortés-Monroy E., and Benjamin Langer at South Summit.

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Continuing on the question of what themes have driven India SaaS over the last decade: one of the themes has been the me-too model in SaaS - this has been a majority of early-stage financings historically in India. I think starting a new company today with this model may be tough, given rise in keyword costs and intense competitive clutter. The model has assumed: - target a large, mature market - build 60-80% of functionality (or pick off a part of the workflow) with some technical innovation - offer at a fraction of the price of the market leader - target SMB first, then work your way up to lower mid-market - aggressive GTM through SEO, SEM, self-service and remote sales - differentiate through price and support - category leadership is not the goal - 10 years to $100mm ARR (if successful)- which is ok-ok growth rate, not top quartile

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🧠 So many pearls of wisdom in this Vinod Khosla interview, for both entrepreneurs and VCs. I've pulled out some of my favourites for you below. 1️⃣ On making contrarian bets "Here's a philosophy, whether you're a venture firm or an entrepreneur. You have to bet on something that you believe in - that the market doesn't believe in - and then stick with it through the ups and downs. You can't predict the timing of most innovations." 2️⃣ On new innovations "I can't think of a big new innovation that came from a person who was in the area they disrupted. Most board members advise founders to 'get somebody who understands the domain' - that's really bad advice generally. You want someone who can think from first principles, and can learn the business rapidly in 6 months. If Elon Musk had been in the automotive industry, I guarantee you we wouldn't have Tesla. When people who came from healthcare tried to do digital health, they generally failed at it." 3️⃣ On risk and failure "There's no one in the venture business who has failed more often than I have failed. I've just tried many more things and screwed up more often than most people. Then a tiny percentage have become the big visible successes. People need to understand that venture is really asymmetric, so you don't want to take low risk. You want to take very high risk - it's not IRR investing. We are buying an option in a great team, and then helping them succeed." 4️⃣ On taking advice as founders "Ask yourself: how many billion dollar companies has the person built? From scratch - not joined Google or Facebook and were given an internal business. When you worry about your pay check, or you struggle to hire someone because you can't offer them a large enough pay check... that's pain. That's when you learn empathy for entrepreneurs." 5️⃣ On thinking long term "Ukraine, Covid and AI are massive turbo-chargers for venture. This is not how the world looks at it. They're looking at short term interest rates, or what's happening with GDP growth. I'm looking at it in terms of what companies will be built over the next 20 years given the changes in the world. I'm not investing in crypto one year, then AI the next. It's a long term approach to venture." 6️⃣ On future predictions "Today's 30-year-olds, take note. In twenty years, jobs won't be the key criteria for education. In twenty years, the world's 50-year-olds will have a hard time adjusting to the fact that they generally won't have to work. As robots and AI do much of the labour-intensive work, they'll be able to lean into their passions and be more creative. Human selection, human preference and taste will become highly valuable. Human's will always prefer human uniqueness."

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#VC funding #slowdown is impacting #earlystage #startups too. Deal close volume is down 44% (seed) and 49% (series A) since 2022. What can we do? If we just got a #seed, let's adjust our plans aiming at a 24-month #runway. Focus on getting cash from customers and build the traction metrics to get ready for the next funding round (it takes time to get the KPIs point up steadily, aim to have solid metrics in 12 months). Here are some #execution bits that are working for teams I support. #PRODUCT 1. We intensify #customer #discovery to find out their pains/desires/needs and what they see as alternatives (yeah, I'm a product guy). 2. We update the product-market #roadmap: write down clear attributes of the market segment that is ready to understand our value proposition and ready to decide on adopting our solution. 3. We write down the #value #themes matching important outcomes for our target market and share them with the product #team. Empower them! 4. We write only the #code to create value for users, track product #usage, #automate our release process. #SALES 5. We write down a list of criteria for #lead #qualification and then use them: if a lead doesn't qualify, we don't spend time on it. Next! 6. We design a great #onboarding and minimize the time-to-first-value: let's make sure new customers feel they made a good decision in adopting our solution (let's add some essential product analytics, nothing fancy, just measure the behaviors that generate value for users) 7. We rewrite our #positioning and our sales #narrative from a demand-side perspective. Forget about features: let's focus on the customer's job, pros and cons of the available #alternatives and our #differentiated #value. 8. We organize all our prospects in a #sales #pipeline and review it every week: demos and Zoom calls don't count much. #Coffee is for #closers! What did I miss? What can be left out? Add what's working for you. Ad maiora! 📈 🚀 Thanks Warren Packard, Diana Hu, Chon Tang, Irene Mingozzi, Insiya Lokhandwala, Massimo Sgrelli, Luigi Bajetti, Ed Dua, Gregg Bauer, Gerod Carfantan, Giovanni (John) Soleti, John Hodge, Francesco Mosconi, Jennifer Vancini, Angelo Del Priore, Maria Pienaar, Alessandro Levi, Dave Schatz, Irena Goldenberg, Andy Liu, Franco Gonella, Lorenzo Franchini, Marco Marinucci, Oliver Richner, Simone Cremonini, Roberto Bonanzinga, Jeff Fluhr, Michael Tam

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🇦🇪 Is #VC funding in the UAE picking up steam? From 2017 to 2021, UAE-based startups enjoyed a consistent year-over-year rise in funding, earning the country recognition as one of the fastest-growing ecosystems in the world. But since 2021, the macroeconomic environment has dampened investor activity. This trend was particularly evident in the quarterly funding data from 2022, culminating in Q1 2024 being the worst quarter in the past three years. However, the outlook has improved in Q2 2024, with VC funding rebounding by about 104% from Q1. In fact, comparing March to June year-to-date, funding has surged by approximately 207%! Some of the latest announcements are coming from NOW Money, Qstay , Tenderd , Stake, Grubtech, Merit Incentives, and Property Finder among others One of my favorite tools on MAGNiTT’s platform is our forecasting and charting tools. In it we have our seasonal funding chart, which forecasts quarterly investments for individual markets. Historically, Q3 has been the worst-performing quarter for the UAE. Which is why Q3 will be a crucial period for VC funding in the UAE, setting the tone for the rest of the year. And, if Q3 follows historical trends, all eyes will be on Q4 as the potential turning point. At present though there are numerous opportunities emerging in the UAE. Shorooq Partners and Polynome have launched new funds, Abu Dhabi has introduced MGX, a new tech investment firm, and global startups are looking to expand or relocate to the UAE. Exciting times ahead! To create your own funding forecasts, get a subscription to MAGNiTT: https://lnkd.in/dJrCd3fm Do you expect a summer slow down in Q3?! or will the region buck the trend heading into July and August for the first time? Let me know below 👇 #UAE #MENA #UAEstartups #venturecapital #investmenttrends #innovation #funding 

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The profitability sanity test for VC-backed unprofitable cos. Ask this question: How much revenue would it take to be breakeven if: - gross margin % is held constant - all opex spend is held constant on a $ basis Is that revenue achievable with no additional cost? In the attached example, the company needs to grow revenues from $50,000,000 to $87,500,000 with no additional expense to be breakeven. That's $37,500,000 of incremental revenue with $0 of added expense. The question for this business is whether that's possible. If the gap seems too large, then to make the gap more attainable there are two levers: - increase gross margin % - reduce operating expense The best means to do that varies by business, but those are the two levers. And this needs to happen while the company is growing revenues. If the gap seems impossible, then you may have a fundamental business model issue that will make profitability a remote possibility. Of course, there are means in which companies can grow to achieve scale which will help with the profitability likelihood over time - but that will require outside capital which should never be treated as categorically attainable.

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Building in public: a risk or a revolution for startups?💡 Imagine every step of your startup journey—successes and failures—laid bare for the world to see. That's building in public 👀. A concept that's reshaping the startup ecosystem, but not without its debates 🗣️. Transparency is the cornerstone here. From sharing financials to revealing the raw, unedited process of product development 🚀, startups are tearing down the walls. Why? To foster a community of loyal followers, to gain invaluable feedback, and to set a new standard of authenticity in business. But here's the twist: it's not just about being open. It's about strategic vulnerability. The art of sharing not just what makes you proud, but also what keeps you up at night 🌙. And in this sharing, there's a delicate balance between vulnerability and strategic discretion. It's not for the faint-hearted ❤️‍🔥. Sharing failures and behind-the-scenes chaos requires a new level of vulnerability. Yet, those who dare are finding a loyal tribe, invaluable insights, and sometimes, a success story 💫. Let's start a conversation. Share your thoughts on building in public. Is it a strategy you're considering, or do you see it as a risky gamble? 🎲 __________________________________ Interested in joining us on our mission to revolutionise the insurance industry and empower individuals to lead healthier lives? Let's chat! Reach out to learn more about investment opportunities with Ortē as we look to close a pre-seed round. #AIforGood #InsuranceInnovation #HealthAndWellness #EmpoweringIndividuals #buildinpublic #firsttimefounder #startup #insurtech #welltech #investment #preseed #seis #incomeprotection #lifeinsurance #insurance #longevity

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As a VC, embedded finance excites me a lot. The term 'fintech' often conjures images of disruptive mobile banking apps. But, I strongly believe, integrating financial services seamlessly into non-financial platforms can remarkably expand access and foster a new generation of empowered investors. . Why This Matters? -> Traditional financial institutions struggle to reach underserved populations, leading to generational cycles of reliance on predatory lenders or exclusion from wealth-building altogether -> Embedding financial services into existing trusted platforms (think: payroll apps offering micro-investing, ride-share dashboards with built-in savings tools) removes the need for conscious opt-in, a huge barrier for newcomers -> By leveraging user behaviour already tracked within these non-financial apps, embedded finance can offer tailored solutions without lengthy onboarding. This combats the 'one-size-fits-none' approach that alienates potential customers . I believe this trend is about more than just convenience. It seeds fertile ground to nurture financial literacy through democratized access to investment tools. We're looking for founders who see the intersection of: -> Gamified Investing for Beginners: Fractional shares and recurring micro-investments are already gaining traction. The startups that make this genuinely engaging while teaching core concepts are poised to shape positive behaviour change -> Ethical AI for Accessible Advice: Algorithmic recommendations have the potential to perpetuate bias. The tools overcoming this will make investing safer for those without traditional financial support networks These are just examples. The list is much longer. But, you get the gist. . My experience building a tech-enabled language learning platform (Multibhashi) taught me that meeting learners where they are is key. Same way, finance needs to go where people already are, and not the other way around. That’s what embedded finance is all about. . We're eager to back founders transforming 'banking' from something intimidating into an integral part of platforms serving those neglected by the traditional system. If you are one such founder, I/team at Dexter Ventures would love to learn more. Do reach out at deals@dexter.ventures and keep anuradha@dexter[dot]ventures in cc :) Anuradha #Dexter #DexterCapital #DexterVentures #Startups #IndianStartups #VC #Entrepreneurs #Entrepreneurship #AngelInvesting #InvestmentBanking | Devendra, Devendra, Jayant, Dexter Capital Advisors

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🚀 Insights from Venture Collision Conf Today! 🚀 Privileged to learn from industry leaders at today's event: Paddy Cosgrave, CEO of Web Summit, Rashmi Gopinath from B Capital and Shailesh Lakhani from Peak XV Partners. Here are some key takeaways: - Rise in Bootstrapping startups: More bootstrapping startups this year than ever, emphasizing a trend towards building with limited external funding. - Secondary Market Activity: The secondary market is more active this year, reflecting dynamic investment strategies compared to last year. - Engineering Talent: Strong engineering talent is crucial for building successful teams. Talent hotspots include the Bay Area, Beijing/China, and India. - Capital Dynamics: The excess capital raised in 2021 and 2022 has intensified competition in certain sectors, diluting opportunities and leading to an unsustainable environment. A return to stability will take time. Grateful to everyone who shared valuable insights today! #Venture #collision2024 #Startups #Innovation #Entrepreneurship #TechTrends

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Anas Duksi at 24SIX9 Founders Community Weekly Friday Meeting. crunch/DUBAI – Dubai's StartUPs and people. #SalesOps is really a challenge Ops for startups and Anas helping with this to startups from #SeedStage to #SeriesA. We talked about AstroLabs a lot, team pushing us to open OpCo in #Dubai (I follow DMCC (Dubai Multi Commodities Centre) and Mr Ahmed Bin Sulayem activities and wanna try something in #DMCC), maybe #AstroLabs is our choice? Will search 🔍 #founderscommunity #dubai #startups

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OpenAI's Sam Altman interviews serial founder and legendary VC investor Vinod Khosla. Sam asks "What percent of investors are good company builders?" Vinod responds with 3 powerful statements: 1️⃣ 90% of VCs add no value 2️⃣ 70% of VCs add negative value 3️⃣ If you haven't built a company before, you haven't earned the right to advise an entrepreneur #VentureCapital #Fundraising #Founders

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🚀 Exploring the Nuances: Angel Investors vs. Limited Partners 🤝 In the dynamic world of investment, understanding the roles of various players is crucial. Today, let's delve into the distinctive realms of Angel Investors and Limited Partners (LPs) – two vital pillars of the investment ecosystem. 👼 Angel Investors: These are the unsung heroes of the startup realm. They're individuals with a passion for innovation and a knack for spotting potential. Angel investors inject personal funds directly into startups, offering not just capital, but also invaluable mentorship, guidance, and networks. Dealing with them individually offers a hands-on perspective, aligning closely with the entrepreneur's journey. 💼 Limited Partners (LPs): On the flip side, LPs play a pivotal role in fueling the engines of investment funds – be it venture capital, private equity, or hedge funds. These institutional investors contribute capital to funds, entrusting the fund managers (General Partners) with investment decisions. While LPs enjoy the benefits of diverse portfolios and expert management, dealing with them offers a broader view of market trends and strategies. Dealing with Angel Investors and LPs individually offers unique insights and perspectives. Angel Investors bring firsthand entrepreneurial experience and personalized support, fostering a close-knit relationship with the startups they back. LPs, on the other hand, provide a bird's eye view of the investment landscape, with access to diverse opportunities and seasoned fund managers steering the ship. Understanding the nuances between these two investor categories is paramount for entrepreneurs navigating the investment landscape. Whether it's securing seed funding or scaling up with institutional backing, each brings its own set of opportunities and challenges. Here's to the synergy between passionate angel investors and savvy limited partners, driving innovation and growth across diverse sectors! 💡 #InvestmentInsights #AngelInvestors #LimitedPartners #StartupEcosystem #VentureCapital #PrivateEquity #EntrepreneurshipJourney

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"Health is an investment, not an expense." — Anonymous Just a few days ago, our teams at DeVC and PeerCapital brought together an incredible group of entrepreneurs and enablers to explore the real investments and expenses in healthcare. On stage, we had the dynamic trio of Mayank Banerjee , Dilip Kumar and Tarun Bhambra, who combined their wit and wisdom to delve into: - The consumerization of healthcare, preventive vs. curative approaches, accessibility and affordability challenges, offline vs. online dynamics, and how founders can bridge skill gaps. - The evolving role of AI and tech in healthcare, and how founders are strategically allocating resources to build cutting-edge solutions. - Collaborating with doctors, aligning incentives across systems and how ambitious change starts with robust foundational systems (think CAC's and LTV's). The conversations were raw, experiential, and refreshingly honest. If it weren’t for the ticking clock and the rainy day, we might still be chatting! It was inspiring to engage with so many passionate builders committed to reshaping India's #healthcare future. Let’s keep the dialogue alive. We invite more of your participation and views. Together, we are investing in the future of health. #healthtech #investing #founders

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Enjoyed my interview about the state of the Indian startup and VC ecosystem, especially about diversity in the ecosystem and our view at Paradigm Shift Capital on new emerging technologies! 🇮🇳🚀🌎 Our vision and thesis from Day 1 has been to back ambitious Founders building products for the World, and we see that becoming more mainstream every single day - and for good reason! Thanks for the opportunity, Women Entrepreneurs Review.

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