Similar to Startup Knockdown Kolkata, the Hyderabad edition of the event also featured some informative panels by experts. Our objective of hosting these discussions and sessions is to help the entrepreneurs make the most out of the event. That is why, we invite experts to share knowledge with them. Sreekanth Perepu, Investment Director at Hyderabad Angels Ventures engaged in a chat about the investment scenario in India and what investors expect from the startups coming to them during the Hyderabad event. Here are the highlights:
Don’t come without a team
This is a fact highlighted by almost all the investors, in travel or otherwise. A smart brain with a good idea is no good if he can’t put together the right team to execute it. That is why it is important to have a strong core team that comprises of people who complement the skills of each other and strongly believe in the idea or product so that they can work together towards realising the common goal. You lose weight from your pitch deck if you don’t have a team to show.
Investors don’t invest in ideas
There is only so much one can judge about a product when it is in the idea stage. According to Sreekanth, investors don’t invest in ideas, they invest in people who have the potential to turn those ideas into a product and eventually into a successful business. Also at the idea stage, you barely have anything to prove your point. That is why it is important to have the numbers to show for the early days.
Never approach investors without a plan
While you expect the investors to support you with your money, they expect you to have a plan on how that money will be used. It is crucial to have details on how the capital will be utilised and what the investor can expect with the next round.
Exit shouldn’t be the primary plan
While laying down the plan, it is good to have a potential exit in place. However, Sreekanth shares that it shouldn’t be the prime objective of any entrepreneur. It is great to have an exit strategy because some businesses can’t grow beyond a certain point but you shouldn’t go out building a travel business just hoping that some major OTA will acquire your product.
Don’t rush into the deal
Finding the right investor shouldn’t just be about the capital. It often gets tough for entrepreneurs looking for investments but that doesn’t mean they should just sign a bad deal. Sreekanth shared how a promising startup offered 40 percent of the company to the investor at seed stage without looking at the consequences. This killed the possibility of a subsequent round, eventually killing the startup, resulting in a failure for both investor and founders. Make sure you take your time to gauge what is on the table and then go ahead with it.
The experts shared lot more interesting stories and actionable insights during the event. If you have a promising travel startup, you can sign up for the upcoming event at startupknockdown.travhq.com. You can find details about the winners of last two events here: Kolkata | Hyderabad.
Signup for exclusive newsletter from TravHQ
Get exclusive weekly updates and insights delivered to your inbox