Raising funds is often the most tedious task for anyone looking to set off on an entrepreneurial journey. Building a business requires significant investments and while there is nothing like being able to bootstrap a successful company, investors can add a lot of value. Not only can they offer capital but also bring in their experience and network to the company. During the recently concluded Startup Knockdown+ Pune, we invited Pankaj Mittal, co-founder of Pune Angels and Vivek Nathwani from Mumbai Angels to share their opinions and experience of the investment scenario in India in a session moderated by Daksh Sharma, Founding Partner, TravHQ. Here are the highlights of the session:

(L to R) Pankaj Mittal, Vivek Nathwani and Daksh Sharma

No slowdown at early stage

While the numbers suggest that after an increase in startup investments from 2014 to 2015, there was a decline since last year, the panelists shared the opinion that early stage investors are still open to investing. The difference is because there are less investments at later stage and investors are more careful about the startups they invest in.

Tech is the future but a hard sell

We have only recently started to talk about AI and experts are already calling it the next big thing. This isn’t going to be limited to travel only.

However, Pankaj was quick to point out that the biggest challenge with any new technology is security. People are sceptical to adopt new technologies at first because of potential risks which slows down initial growth. According to him, the ecosystem takes a while to build up and we can’t expect tech adoption like Silicon Valley in India anytime soon.

Team over product

Vivek highlighted that a strong team takes high priority when looking to invest in a startup. There are many factors involved like market size, niche, competition, growth potential among others but the team holds a very important spot. There could be rough times and times when sudden change of direction is required and the right people can pull it off.

Responding to how investors deal with failing startups, he shares that they try to work even closely with the startup in question and help plan the right course of action. They put their trust with the investment and don’t remove the support in tough time.

Traction builds confidence

Investors don’t put their bets at idea stage. Not because they aren’t sure about the potential of the idea but because they are looking to minimise the risk. Which is why they want to see some traction, a reasonable number of early adopters to build the trust.

There is no right time

Speaking about when should a startup look for funds, the panelists shared the opinion that there is no right time. Founders should try to push the event as further away as they can and if possible, survive on own investments. There are other schools of thought but it is just about balancing between the pros and cons of early investment.

Anshoo Gaur, IAN Member and MD of AmDocs also shared some really interesting lessons for young startups during the event. You can read more here.

The post Highlights from the fireside chat with active angel investors from Pune Angels and Mumbai Angels appeared first on TravHQ.

Building a business from scratch is certainly not an easy job. “We expect to create a significant disruption in the market” is a phrase we get to hear often. Some have inspirational stories to share at a later stage, others have some lessons. The difference in approach and the persistence can make all the difference. Anshoo Gaur, CEO & Founder of Praavega System, President & MD Amdocs, an active angel investor and a travel industry expert touched upon the topic at the recently concluded Startup Knockdown+ Pune.

In his energy packed session, he shared some really important pointers. Pointers every entrepreneur should have in his or her mind before venturing out on the journey. Here are some of them:

Business or hobby

While it is rather obvious that entrepreneurs need to commit themselves while building a business, Anshoo shared that over all the years he has been investing in startups, he has seen far too many startups where the founders weren’t very clear on why they are doing something.

If it is not important to you more than your life, then it’s a hobby. While having a hobby isn’t bad, it won’t make a very good business.

Dig deeper

There is lot of buzz around startups but Anshoo points out that the buzz isn’t translating into value. Lot of startups are just skimming the surface instead of going deeper into the domain.

He shared, “I don’t see enough focus on deep domain and deep tech. Travel is lot deeper than the social interactions that take place. When we talk about deep domain, why aren’t we going deeper to figure out those solutions rather than building interaction platforms. Nothing against them but I would encourage you to go deeper into the domain and deeper on the tech side.

Intellectual property

This is something that has been repeatedly highlighted by investors. Startups should consider protecting their intellectual property. While it is okay not to, they should either be the first mover in the space or should keep innovating fast enough.

You might not have the IP but if you are moving really fast, you will still be ahead of the others who are trying to catch up.

Adoption vs value

People are adopting your product doesn’t mean it is adding value to their lives. He highlighted that many build with the notion that if enough number of people join their platform, they will be able to make money. According to him, the number of downloads and signups doesn’t affect the potential to charge for a product or service. Reaching a particular number won’t change how users see the product in most cases.

People aren’t waiting out there to part with their money because you have got 100K downloads. We should be clear about the fact that if someone is not willing to pay you on day one, it is likely they will never pay you.

Anshoo expressed that India is an interesting market because of the complex set of problems it offers. The Pune edition of Startup Knockdown+ featured many other equally interesting discussions and we will keep bringing you more over the next few days.

The post “If someone is not willing to pay you on day one, it is likely they will never pay you”- Anshoo Gaur, IAN Member and MD-Amdocs appeared first on TravHQ.