The Series A Squeeze.
Founders raising a $5M check in India quickly realize how few options they have.
If you add in conflicting investments or segment focus/de-focus, you can
literally wrap up meetings in 2 weeks at most.
There's another dynamic at play due to this short supply for local Series A
capital - if there isn't quick and enough excitement about your business, you
will see that your round timeline extends by 2X and your valuation craters.
The basic laws of demand & supply - nothing else.
Most founders don't realize this when they begin their raise - naturally,
everyone is optimistic for themselves.
But it is less about optimism and more about the extreme squeeze we have for
Series A capital.
And local funds can only do so many deals.
The only solution right now is to expand your TAM and build conversations with
more global funds that do invest in India.
And this is happening far faster and far more than I had imagined as we see data
across our large pre-seed portfolio.
If you are a founder raising a $5M or more check, you'll be better off starting
with a bigger global list of VCs from the get-go.
#founders #startups #venturecapital
Originally posted by Vaibhav Domkundwar on LinkedIn
link: linkedin.com/in/better
Founders raising a $5M check in India quickly realize how few options they have.
If you add in conflicting investments or segment focus/de-focus, you can
literally wrap up meetings in 2 weeks at most.
There's another dynamic at play due to this short supply for local Series A
capital - if there isn't quick and enough excitement about your business, you
will see that your round timeline extends by 2X and your valuation craters.
The basic laws of demand & supply - nothing else.
Most founders don't realize this when they begin their raise - naturally,
everyone is optimistic for themselves.
But it is less about optimism and more about the extreme squeeze we have for
Series A capital.
And local funds can only do so many deals.
The only solution right now is to expand your TAM and build conversations with
more global funds that do invest in India.
And this is happening far faster and far more than I had imagined as we see data
across our large pre-seed portfolio.
If you are a founder raising a $5M or more check, you'll be better off starting
with a bigger global list of VCs from the get-go.
#founders #startups #venturecapital
Originally posted by Vaibhav Domkundwar on LinkedIn
link: linkedin.com/in/better