Bachelors of Commerce (Honours)

CIA - III OF FINANCIAL SERVICES AND SYSTEM_COH33

PROJECT REPORT
ON
By
Riya Singh (22214087)
Ishita Dave (22214046)
Deepika Singh (22214034)
Kanya Bathla (22214054)
Simarjot Singh (22214107)
Millind Kuchhal (22214065)

Under the Guidance of

(Jerush John Joseph
And Professor)

SCHOOL OF COMMERCE, FINANCE AND ACCOUNTANCY

CHRIST (DEEMED TO BE UNIVERSITY) DELHI NCR
MONTH 2023

TABLE OF CONTENTS
BATCH: 2021-24
 Page No.
Sl No Particulars
(from and to)

1 INTRODUCTION

2 CA . ADITYA MISHRA

3 MR. HARSHIT AGARWAL

4 LEARNING EXPERIENCE

5 CONCLUSION

6 ANNEXURES
INTRODUCTION:

Venture capitalists (VCs) are individuals or firms that invest in early-stage, high-growth-potential

companies in exchange for equity ownership. They play a crucial role in the startup ecosystem,

providing funding, expertise, and network-building support to promising ventures.

VCs actively seek out companies with innovative and disruptive technologies, a strong

management team, a clear market opportunity, and a sustainable competitive advantage. They

provide the necessary capital to fuel the company's growth, enabling them to invest in research

and development, expand operations, and pursue marketing and sales efforts.

Beyond funding, VCs offer valuable support to their portfolio companies, including mentorship

and strategic guidance, network access, and industry expertise. They also employ risk

management strategies to mitigate the inherent challenges associated with early-stage

investments.

VCs consider various exit strategies to realize their investment returns, such as initial public

offerings (IPOs), acquisitions, or secondary sales. Their success in identifying promising startups

and achieving successful exits contributes to economic growth and innovation.

Key roles of venture capitalists:

1. Provide funding: VCs are the primary source of financing for early-stage startups, which

often lack access to traditional sources of capital like bank loans. VC funding allows startups
 to invest in research and development, expand their operations, and hire talent, essential steps

for achieving their growth objectives.

2. Offer expertise and guidance: VCs bring valuable expertise and industry connections to the

table, providing startups with strategic guidance, mentorship, and access to their network of

partners and potential customers. This support can be instrumental in helping startups

navigate the challenges of the business landscape and make informed decisions.

3. Facilitate network building: VCs connect startups with potential partners, customers, and

investors, expanding their reach and opening up new opportunities for collaboration and

growth. This network-building capability is crucial for startups to gain visibility, attract

talent, and establish themselves in their respective industries.

4. Evaluate and manage risk: VCs assess the potential of startups and make informed

investment decisions based on their evaluation of the company's team, product, market

opportunity, and financial viability. They also manage the risk associated with investing in

early-stage companies, ensuring that their investments are aligned with the overall strategy of

the VC firm.

MAIN STRATEGIES:

Venture capitalists employ a range of strategies to identify, evaluate, and support promising
startups with the potential to achieve significant returns. These strategies encompass various

aspects of the investment process, from deal sourcing and evaluation to portfolio management

and exit planning.

Deal Sourcing and Evaluation Strategies

1. Industry Focus: VCs often specialize in specific industries or sectors, allowing them to

develop deep expertise and insights into the market dynamics and growth opportunities

within those areas. This specialization enables them to identify promising startups that

align with their expertise and risk profile.

2. Networking and Relationship Building: VCs actively engage with the entrepreneurial

ecosystem, attending industry events, networking with potential founders, and cultivating

relationships with accelerators, incubators, and other key players in the startup landscape.

These connections provide a pipeline of potential investment opportunities.

3. Due Diligence and Evaluation: Once a promising startup is identified, VCs conduct a

thorough evaluation process, including due diligence on the company's team, product,

market opportunity, financial viability, competitive landscape, and intellectual property.

This evaluation helps assess the company's potential for success and the associated risk.

Portfolio Management Strategies

1. Active Portfolio Management: VCs actively engage with their portfolio companies,

providing mentorship, strategic guidance, and access to their network of resources. This

hands-on approach helps portfolio companies overcome challenges, make informed

decisions, and accelerate their growth.

 2. Value-Added Support: Beyond financial backing, VCs offer various forms of value-added

support to their portfolio companies. This may include helping with hiring, fundraising,

marketing, and business development.

3. Follow-on Investments: VCs often make follow-on investments in their successful

portfolio companies to fuel their growth and expansion. These additional rounds of

funding provide the necessary capital to execute the company's strategic plans and reach

its full potential.

Exit Strategy Planning

1. Exit Strategy Alignment: VCs work closely with their portfolio companies to develop and

align on an exit strategy, which determines how and when the VC will exit its investment.

Common exit strategies include initial public offerings (IPOs), acquisitions, and

secondary sales.

2. Exit Timing: VCs carefully consider the timing of their exit, aiming to maximize their

return on investment while ensuring the long-term success of the portfolio company. An

appropriate exit strategy can significantly impact the overall profitability of the VC firm.

3. Post-Exit Involvement: Even after exiting an investment, VCs may maintain a

relationship with the company, offering ongoing advice and support. This continued

involvement can contribute to the company's continued success and enhance the

reputation of the VC firm.

 SECTION-1

“Exploring the World of Venture Capital: An Interview with Mr. Aditya Mishra”

5 November’23, Sunday (11:00 PM)

Brief background of the Venture Capitalist and their Firm:

Mr. Aditya Mishra is a seasoned professional in the venture capital (VC) industry with a

distinguished career spanning many years. He is practicing Chartered Accountant with having

rich experience in statutory auditing and taxation. He began their journey in finance, quickly

establishing themselves as a prominent figure in the venture capital landscape. Over the years,

they have played a pivotal role in shaping the industry, contributing to the success of numerous

startups and emerging companies.

Expertise in investing in startups and Angle-investor. He has been instrumental in the firm's

success. Mr. Aditya Mishra is renowned for its strategic investments in angle-investor by

investing and analyzing in startups. The firm's portfolio boasts a diverse range of successful

ventures, showcasing their ability to identify and nurture innovative ideas. He provides

professional services and advices to many angel-investor.

Purpose of the Interview:

The primary aim of the interview with Mr. Aditya Mishra is to gain a deeper understanding of the

venture capital landscape from the perspective of an industry expert. This interview seeks to

explore the intricate decision-making processes employed by Mr. Aditya Mishra and understand
the criteria they consider when evaluating potential investments. Additionally, the interview aims

to uncover insights into current trends, challenges, and future predictions within the venture

capital domain.

Through this interview, we aspire to provide valuable insights to aspiring entrepreneurs, students,

and professionals interested in venture capital. By delving into the experiences and perspectives

of Mr. Aditya Mishra, we aim to offer a comprehensive view of the dynamics shaping the

venture capital industry and its impact on innovation and economic growth.
 TRANSCRIPT OF INTERVIEW

Interviewee- Mr. Aditya Mishra

Interviewer-

• Millind Kuchhal

• Simarjot Singh

• Deepika Singh

• Ishita Dave

• Riya Singh

• Kanya Batla

Riya Singh- Thank You Sir. As you are certified Chartered Accountant, so what motivated you to

become an Angle-investor for startups or what rewards do you see in investing for startups?

Aditya Sir- If I were to reflect on my path, I would conclude that I had a few opportunities to

assist startups with the analysis of their financial records and statements. By the time I get the

abilities to evaluate companies. It was therefore by coincidence that I first paths with angle-

investor in 2020, as I believe I put my first money in a company formed by a friend of mine who

approached me to discuss her ideas while she was working on it. I made the decision to support

her in growing that business, so we collaborated on the venture to customize corporate gifts, I

even failed at that venture, but I learned a lot from it, and by the time I met with other

entrepreneurs and young business owners, I was able to enter this industry by supporting them.
Ishita dave- So sir, as you were telling about your experience, can you please explain how

networking and building relations as an investor is important in capital market?

Aditya Sir- Thus, in my opinion, the first step towards becoming a successful venture investor is

taking this action. If I were to sum up what I learned at school, I would say that I was quite social

and enjoyed forming relationships with my classmates. Even in my career route, I began to see

that I have made things by developing relationships.

Kanya Batla- Sir, can you describe a recent successful investment that you made and what

stranded out?

Aditya Sir- Recently, I took over a successful company that was founded in 2012. My goal was

to start a venture at a time when I could offer new startups and businesses all the help they need.

Introducing a digital marketing product there, I chose a single person to lead that department,

and I brought him into the team. It's important to note that this person was only 24 years old

when he started college and worked as a digital marketer, so I brought him on board. Together,

we created a team of accountants and marketers who would take on clients, and we finished the

team for all the domains, including HR, finance, and accounting. At this point, we have a

turnover of about 1.5 CR in that domain, making it the most successful startup I have ever

invested in.

Deepika Singh- can you please tell us about the process for evaluating a startup?

Aditya Sir- The evaluation process for startups can be rigorous and time-consuming, as VCs

carefully weigh the risks and potential rewards before making an investment decision. However,

this thorough approach is essential to ensure that VCs are backing companies with the highest

potential for success, which ultimately benefits both the investors and the startup ecosystem as a
whole. VCs often consider intangible factors such as the passion and drive of the founding team,

the company culture, and the overall alignment of the startup's vision with the VC's values and

investment philosophy. The evaluation process allows venture capitalists to make informed

investment decisions and maximize the likelihood of success for both the startup and the

investor. Keep in mind that different venture capitalists may emphasize certain aspects of this

process based on their investment strategy and focus areas.

Ishita Dave- sir, don’t you think young entrepreneurs have more revolutionary ideas than those

who are already in the market?

Aditya Sir- Young business owners frequently have a special blend of new ideas, unrestrained

energy, and a readiness to question the current quo. This combination has the potential to

produce ground-breaking concepts that upend established businesses and generate whole new

sectors. Young entrepreneurs are often less hesitant to challenge established norms and disrupt

existing industries. They are not afraid to take risks and experiment with new approaches, which

can lead to breakthrough innovations that transform the way we live, work, and interact with the

world.

While experienced entrepreneurs bring valuable insights and industry knowledge, they may

sometimes be more constrained by their past experiences and the limitations of existing

paradigms. Young entrepreneurs, on the other hand, are often less bound by these limitations,

allowing them to think outside the box and pursue truly revolutionary ideas.

Venture capitalists recognize the potential of young entrepreneurs to disrupt industries and create

entirely new markets. They actively seek out these individuals, providing them with the funding,

mentorship, and network access they need to turn their ideas into reality. By supporting young
entrepreneurs, venture capitalists play a crucial role in driving innovation and shaping the future

of the economy.

Of course, not all young entrepreneurs will succeed in turning their ideas into successful

businesses. However, the potential for transformative innovation is often higher among those

who are willing to challenge the status quo and embrace new possibilities. Venture capitalists

recognize this potential and are willing to invest in the next generation of entrepreneurs who

have the vision and drive to change the world.

Riya: How can we judge the market size of a startup?

Aditya Sir: As I have worked with almost 8-10 startups and working as an investor, I regularly

meet people who are working on their businesses, so this thing gave me an insight to all the

market trends that how market is responding to a particular product, so I get the idea of maket

opportunity from there, by meeting different entrepreneurs and company owners. After getting

the idea I prefer to analyze what products they are offering. Let's take the example of digital

marketing which was recent startup I have invested in. I that case I asked the person to provide a

report that what products usually digital marketing companies provide in this segment, and in

what areas you are comfortable and skilled enough and rank them accordingly and categorize

them in alphabets like A: In which you are highly skilled, B: Mediocre, C: Low. So, we made our

strategy to work on category A products because we know working on this category, we will be

able to catch the clients faster. So instead of seeing what/how the market is responding we see

our strengths. Like you must have heard about SWOT analysis, which helps me a lot in investing

in any startup.
Riya: Sir, can you please tell how to maintain a portfolio for investment, and can you please tell

us about your portfolio?

Aditya Sir: I would say that the first thing that I keep in my mind is decision making, as the

recent investment I made was entirely dependent on my decision making. I invest in those

startups where I see that I can understand the whole idea, as I understand a finance area much

better, I can better support a finance startup, funding startup, digital marketing startup and a legal

startup. So, these are the areas where I am good, and I provide better opportunities. So mainly I

see which area the startup is working on and whether it is aligned with my capabilities and then I

take them on board as I know there, I can prepare an ecosystem. For example, if I am owning a

C.A. firm, digital marketing, legal firm here they all can support each other's products and refer

each other so this will create a complete ecosystem. But some senior venture capitalists who

have years of experience prefer to invest in a wide range of products so that if one thing is going

down others will flourish. So, I prefer to I prefer to invest in similar products, industries which

interlink each other, and I would advise this is to the young investors.

Deepika: Sir, I would like to ask you that when you invest in a company what are your roles

towards those companies. Do you provide any other support apart from funding like

mentorship?

Aditya Sir: I generally provide them with legal support like legal documentation and other legal

things like if they are going to a new customer or clients, so I provide legal support like how to

prepare all the documents and how agreement is made. The second thing is that i prefer to

provide them with all the financial services and all the compliance services so that they can free

themselves from all the compliance parts. From my experience I have seen that the compliance
part is tough for all the startups initially. So, I handle that for them, and they can free themselves

from it. The third thing is that the financial support. I provide them with multiple government

schemes for grants and subsidies and other resources like how to get an office space and how to

get other services. As it is now easy for me because of me having the experience of 10 years I

can easily make it available for them. Instead of them working for it, I make it easy for them. I

also provide them with mentorship from my experience. When they are not able to get a solution

for things, I sit with them and solve that problem.

Kanya: Sir, how do you handle situations when a portfolio company faces any difficulty, or

when they need any extra funds?

Aditya Sir: I would say that any problem in the company can be analysed by seeing the financial

statement of the company that what is the reason or main problem that this problem is occurring.

So, I sit with the founders and Director of the company with the financial statements of the

company and i discuss the problems and try to find the exact reason. And how can we get the

solution for the problem. I would like to share one thing with you, when we run a company

directors are the internal part of the company and they manage the operations of the company so

the vision of them seeing the company is internal so the third person who has bird eye view is

important and they can provide the solution and implementation will be fast. So, my role is to

analyze the situation and provide them with a solution and sit with them to implement it.

Millind: Sir, how to balance risk and reward when making such crucial investments because risk

is as important as reward as we have equally calculated risk.

Aditya Sir: I feel let's take an example that we are working with 10 startups like I said the

ecosystem, i support those start-ups which can support one another and can cross help. The main
strategy for now is that i invest in those businesses which I am comfortable with or for which I

know that I have clients because I also give clients to those startups so that they can get support.

Even I guide them on the strategy and how they can charge the premium fees. Because I know

what requirements the clients have, how much they can pay and what services they want.

Because the pricing strategy is always based on what problem the client is facing and how we are

providing the solution. So, we calculate the value which we can charge from them for those

products we provide and then get a good revenue. My focus is on revenue because when we get

revenue then we can maintain every aspect of business, so the main thing is revenue to cut the

wastage of funds.

Simar: Sir what are the qualities that you see in people like funding startups, founders? What are

the strengths you look for?

Aditya Sir: I would first like to talk about the directors who are heading the whole company, so

the first quality i see is financial capability. How well they can handle the finances. Because from

the finance background I have extra focus on Finances, that how good the Directors can manage

the finances and how Better they are in analyzing where they can invest. Secondly, I see whether

they have a complete understanding of how the company is going in the next 5 years and what

things they require and what type of team they should hire. I would like to share one thing that I

feel is important that if we start a startup we require two types of teams, one which is totally

focused on one domain. Where I see how much they are dedicated and focused and how much

they are organised, how well they can manage the team. And when I talk about the directors, I

see how much understanding they have about the market. Directors should have a big picture and
see the small problems which can be tackled easily, and they are working on a big picture. Vision

is the thing I look for.

 VENTURE CAPITALIST : Mr HARSHIT AGARWAL

Mr Harshit Agarwal is an angel investor with a background of chemical

engineering from IIT Varanasi, he also completed his PGPM Mba from Indian
School of Business ISB & is currently pursuing his Doctor of philosophy, Business
Strategy from Fortune Ins tute of interna onal business.
He is a full- me employee at Sunstone as the business head, Head of Ini a ves.
He has great skills of growth hacking, go to market strategy, opera on opera ons
management and business development.
He has an experience of being an angel investor for more than one year. The some
of the start-ups that he has invested in are My capital,
CultureX,Examrly,Ingenium,Rare Planet, SkyeAir and many more.
He also has an experience of more than one year in the Oyo as head of the supply
and country launch in Sri Lanka and Nepal, where he focused on project delivery,
opera on, opera on management, business planning and start-up strategies. He
was also a treasurer at Toastmaster interna onal where he managed a por olio of
INR ve lakhs including registra on of 80 members . He is also also founder of
CuriousMindBox.com which is a non-pro t educa onal website that answers daily
life curiosi es, the website has more than 200 ar cles and approx 500 hits daily.
He was also a process engineer at Samsung engineering Indian Pvt Ltd for more
than three years where he focused on site, distribu on management and
con ngency planning where he lead the three member mul cultural team of USD
34 billion.Ichthys Gas Field Development .
He also has an experience of more than two years in spinning at the head of Pune
and Mumbai branch with opera on management, business planning and business
development.

Mr Harshit Agarwal has worked on projects with SEBI Commi ee on Corporate

Governance, he was a member of research team of Professor Krishna Murthy,
Subramanya member of SEBI Commi ee , where he searched on how RPT’s
related to increase in NPA and decline incorporate governance, recommenda ons
were provided to CB on how to improve corporate governance in India.
CAPITALIST : Mr HARSHIT AGARWAL
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 TRANSCRIPT OF INTERVIEW 1

Interviewee- Mr.Harshit Agarwal

Interviwers- Riya Singh
Simarjot Singh
Kanya Bathla
Deepika
Milind

RIYA - Good evening first. So firstly, there will be the first question that you will have to introduce
yourself as we already know that your part time work is angel investing and other than that you work in a
company for one and a half years. So we all know that, but you wanted to know from you that what is
your profile and why you wanted to work as an angel investor as well? ( Time- 0.30 sec)

HARSHIT SIR - Okay, so let me just introduce myself. So I have more than, I think, 12 years of
experience working across companies and departments. So I started my education. I did my
education from IIT Beirut. I am a chemical engineer. After that, I've worked for almost three
years, five years, if I say, in oil and gas. I've worked with two companies. One is Sunshine
Second is Energy. I worked with them across countries. They were multiple projects that I
handled right from Middle East, Australia, South Korea. So that was my job role. After five years
I felt, okay, now code is done enough, so let's move to a different stream. And I wanted to
explore the startup world, so I did a startup of my own as well for some time. Eventually was not
able to make it big because fundamentals will not correct for me. I didn't know much about
exactly how to build that problem. So thought by not just take that learning and then work or get
into a start-up. So went to ISB, did my MBA. After that I joined OYO. Probably with OYO, I
worked for almost two years and build their two countries. when I joined started expanding
internationally. And their second country after Malaysia, which they expanded, was Nepal. And
the third country was Sri Lanka. So what I did is basically I built a Nepal market for them for
almost one and a half years. And then I build a Sri Lanka market for them, Center South Asia
business. Then after that, obviously we became much big and I wanted to get into a little bit
more early stage startup because the idea of building from scratch or from zero or I'll say the
field that you get in that is such that you will not find it enough, they corporate setup, which was
becoming because of the business that they grew to. So I joined and went to the early stage
startup called Spinney. So they are the used car market. So for them also it was a starting stage.
They just launched their, they were present only in three cities. Our final saying the one is
Hyderabad, Bangalore, and Delhi, and Ziyah. So they were launching their 4th city which was
pune. That was the fourth business market they were launching, so I started with that. I built that
market for them. Then basically next year they built the Mumbai. So Maharashtra and Taiwan
started building. So I built the entire Maharashtra region for them in the West and worked with
them for almost two years. And post that due to some reasons of my own, I wanted to move out
of West, I want to move out of Maharashtra. I was looking for some different opportunities.
Again, joined a release chair startup called Sunstone. They work basically in the education
industry. So they partner with colleges, work with programs and everything. It's an etech. So I
started working with them and it's been almost now 1.5 years or I'll say 1.7 years around working
with them. And I built new businesses for them. So I currently had 10 new initiatives. So that has
been my journey in the professional world and considering the angel investing if I say, so being a
part of startups from such a long time and know how to build those start ups from scratch,
because what big start ups also I have worked and build it from scratch. I understand first of all
the hustle, the requirements which is required by any startup to build the business. Second is,
obviously I'll not say a clear entrepreneur but I wanted to build something of my own. But
considering the things, tacticality of my current scenarios. I was not able to build something of
my own. So wanted to support work with people who are building and creating something new.
So that was the idea by which I started working on it. Initially, I started mentoring few students
from my college. So I started mentoring a few juniors in IIT,VHU which were basically planning
to do some startup in their final year or pre-final year. I started mentoring them. Then they start
asking for funds, so I said okay, let me help you with some amount. We started helping them and
eventually it converted into that to yes, I can do some investing because I understand exactly
what suits me, what not, which can be built into a business which not. So based on that, I
basically started investing and getting into this investing. And this is how Angel investing started
and it's typically started last year only before that I was only inventory. A lot of folks, but last
year around I think, Jen Feb 2022 is the time when I literally started investing in starters. And
now I think I have invested in more than, I think, ten start ups right now and across industries,
across vertical, there is no specific stream or discipline in which I work. And mostly all our early
stage, I don't invest in a later phase, because I feel that in the early stage there is a scope to
obviously generator return for me also. But if I invested in a lease state startup, eventually the
kind of return that I can expect from them is huge compared to a big startup. And second is
obviously a ticket size also. If let's say you are investing in the later phase of the startup, your
ticket style has to be huge, which eventually becomes like a risky bet. In this, I can basically
putting my eggs in different baskets, if I think. That's the idea. (Time 6:48)

RIYA- Okay, so is there any particular incident or your experience that motivated you to become
an angel investor because I'm sure your professional work was going very well. So if you
wouldn't have done angel investing, that you wouldn't be had any problem. But was there any
partial incident that you felt that you should start also helping startups in their finance journey.
(Time - 7:04)

HARSHIT SIR - So I think it's not specifically an incident, what I'll say is when I was mentoring a
lot of folks in different startups, they used to look for points. And what they used to look for
when they go to go out, I used to help them also in building their pitch decks and everything.
Then I said that, okay, their motive was to get funds and eventually build a business. For me, it
was an opportunity to generate returns on my investments. Let's say if I'm earning money, I need
to do investment side. So what I believe is, let me diversify my investment. If anyone invests in,
let's say, stocks, then real estate, then it can be fixed deposits and bolder multiple avenues that
you use to invest your money. So I thought there is a huge potential, first of all, and when I'm
already invested this much in terms of my time, in terms of my knowledge, in terms of my
practical learning with these people. And I know that they will be able to build something. That's
a confidence that I had with them. I said, why not generate my return also with them? So I
started pitching in that, okay, you are getting funds from me, let me put in some money from my
own site also. So that was the sort of specific incident I find safe. I was working with a lot of
startups. I thought, why not? I can do that. So I started with one or two. I felt yes, it's going good.
I feel I was confident that it's where I'm investing my thesis and everything is sitting perfectly for
now. So I started investing in other words. (Time- 8:35)
Riya - Okay. Is it that you're Are you not audible?

DEEPIKA - So, Sir there are various startups right now and how do you know the or identify the
startup's potential? Are there any process for evaluating a startup's potential? (Time- 8:59)

HARSHIT SIR - So there's no specific process what happens is most more or less people who are
looking for funding will find you. So on any day, I am getting around four to five pitch decks on
every day. I get to be connected to Linkedin and a lot of people connect with me. So I don't go
and find out. First of all, that's the way that people eventually reach out to me. The kill days I'm a
part of a lot of funds. So there are a lot of angel funds, there are a lot of networks which are built
around the investment. So I'm a part of those funds. So what I do is basically I basically get a lot
of investment opportunities there. So pitch decks are being pitched, founders are coming and
pitching. So I listen to them and whichever excites me, whichever is something that fits into my
thesis of investment. I go ahead with that. ( Time- 10:15)

ISHITA - Hello, sir. As you were saying about your experience, so can you tell me about how it
is important for us to build on relationships and networks to the as an investor in this world.
(Time- 10:20)

HARSHIT SIR - So you didn't get your question, you want me to tell about how networking should
be done as an investor?

ISHITA - No, so I was asking about how important of building network building and networking
the relations as an investor in this world.

HARSHIT SIR - So I will say networking is very important. If I say it's not just investment report
anything, because I'll tell you why. A simple example, if you cannot do everything alone. So let's
say in a company also in any business also you need a team to work all right. So here also what
is happening i, let's say if you have a network, someone in your network might have a good
investment opportunity. So what will happen is because maybe that investor watching might not
come to you, but because of your network you get those opportunities. So it happens a lot
because you cannot reach out to everyone. If I am not sure as of now, almost in every college
students have started building startups. And that's a college part. If they start from that time, I
think let's say once they pass out, that number goes on increasing and increase divided. So
number of investment opportunities are huge and you don't know exactly what will work, what
will not. So what happens is you rely on a lot of people which are in your network. They can find
out or fool some good opportunities. They will share, can they do the okay? This is iphone. If
you want, and they can share their diligence or food religions also, that why if I feel it, it's a good
opportunity, and eventually you can also pitch in. So your scope of getting returns, your scope of
better investments increases with the settlement.( Time- 12:30)

ISHITA - Okay, so how do you identify that, yeah, I should invest in this startup and what is the
all criteria and investment?(Time- 12:39)

HARSHIT SIR - So there are multiple, first of all, for me considering an early stage, the most
important part is the team. Okay, so who is in the team? What is their background? Let's say their
pressures, college students, how motivated they are for their vision, what's their passion. Because
startups in the early stage, there are a lot of pivot that happens. A lot of startups start with
something and build something later. Not a startup do that. Like if for an example, if I say every
startup I have seen was done big, was started something different, and then build it to something
different. If I have an example, I worked in OYO. OYO started as aggregator as OYO rooms in
which they used to basically list the hotels and with time they become to own hotels. Similarly,
for Spinney, they started as a marketplace of US car, and eventually they get into a full stack
business. So if your team, your founders have a vision and they are able to put in their 200% to
build their idea, their vision with the hustle, then I think you have one half of the battle, right?
And second, what I look into is the industry. That let's say if you have invested in any startup and
that industry is trending or not, that industry is declining, what's the current status? Third, which
is important is the idea and the competition that exists in the market. So let's say there is
something that is already there in the market and is having a major market share. It's become
very difficult to create a brand or compete with them, right? It needs a lot of guts to build such
kind of business. But what happens is a lot of time we do that because we are not sure, we don't
know, we are not done on competitive research. So these three are the bad things that I really rely
on, first is team, second is industry, and third is the idea with the competition analysis. If all these
three make sense, then more or less, then it's all about how much you're investing, what is the
return on everything, which I'm more or less standard in any early stage, so not a concern on that.
( Time- 15:04) .

KANYA - Sir ,Can you describe a recent successful investment you made, and what made it
signed out? ( Time- 15:11)

HARSHIT SIR - So I will not say as of now successful because any startup which I've invested is
only have not more than one year. So a lot of them have basically raised funds again. So I'll not
say it's a success in terms of that. But yes, a few startups which I have interested, one of them is
radio planning. If you have been to airports, you will see their stores. So their GTM is basically
sell handicraft material. And those guys are doing great. They are basically spread across, I think,
32-airports as of now. And they are going at a faster pace. So that's one brand that I feel is doing
good. The Kinder of startup which I like or eventually I'm sure that they'll be doing great because
they have started building and obviously I think they are getting your different mode. They're
getting profitable soon instead of just burning money and that is culturing. So that's an influencer
marketplace, a good early stage startup, young founders, and basically they're doing great
businesses. So I believe these two are doing fairly well and I'm hoping that they become
successful.( Time- 16:35)

SIMARJOT - So as we said, you have invested in many startups. So can you tell us any
challenges that you have been facing in those startups and what are the learning outcomes that
you have experienced? ( Time-16:47)

HARSHIT SIR - Right, so two things. One is, if I say one challenge is that the early stage startups
when people do, they don't create up visibility for investors. So let's say if you're doing business,
what you'll do is you'll not share them updates what is happening. They'll basically provide
inform you that, okay, we are facing an issue. We also don't talk about that also. Now the
problem is they consider investor as an investor who's giving money, but I have already asked
my investment teams that guys, we are not just an investor. We can be a mentor for you as well
because we have an experience in that one. And if they consider it an inventor, they can start
talking to us of their issues. What I have failed is that that challenge that to make them
understand that please create a visibility. Here is an update on what is happening and eventually
what is next that you are doing because you can also help you. And just like you asked, the
network helps. I have a multiple networks, let's say example I was talking about, why I was
talking about cultural experience? For the cultural experience, I got him business for his startup
in my network. So I basically get him revenue as well. I connected him with a lot of folks where
he sold his product and eventually generated a business. So he takes help me in hiring critical
positions. They asked, okay, so can you please take an interview because they are also young.
They also don't know whom to hire. So what the young founders can talk to is that okay, let me
help you in hiding. So these kind of things can help. And what I've seen is those visibilities are
missing. So that's the challenge that I face.( Time-18:35)

SIMARJOT- And so in your opinion, what are the most exciting trends or industries in the
startup's current scenario?( Time- 18:43)

HARSHIT SIR- What are the sweaty?( Time 18:45)

SIMARJOT - In the quarterly trending industries and exciting startups that you are finding in the
market.( 18:50)
 HARSHIT SIR- So as of now, a lot of startups are coming on AI, so that's an evolving industry
that is coming. Eventually, yes, in India, a little bit on a lower side because the technology is
everything is growing. But yes, that is something that is growing. Second thing that I see a lot is
Sass based models. So let's say software as a service in which you basically eventually
eventually have created a product, it's all about sales. So those two kind of industry are trending
and in India, we are seeing a lot of such kind of startups coming in.(Time- 19:29)

RIYA - So can you share your thoughts on diversity and inclusion in the startup ecosystem. And
any initiative that you have supported, you have invested in a company that supports gender
inclusion or any type of exclusion.

Have you ever invested in a company that supports people who are mainly in exclusion of a
community or anything.( Time- 20:04)

RIYA - Yes, sir. Okay, so I've started the recording once again. So my question was, have you ever
invested in a company that supports inclusion of communities? Or have you seen any company
that talks a lot about inclusion of communities? (Time- 20:46)
Harshit Agarwal Sir-With communities what you mean like exactly? I'm not able to understand. (
Time - 20:52)

RIYA - With exactly I can say that there are communities in India that are exclusive with many
services.
So have you ever started in a company that works for them or wants to work for them so they can
be felt as inclusive in a particular service? ( Time- 20:11)

HARSHIT SIR- You are asking that any specific communities that they are including, let's say
example, let's say tribal people.
No, I don't think so. As of now, I've invested in any startup, which specifically works with
communities. So there's no startup which I'm working right now, which exclude them. They were
exclusion. That's not the case that they obviously is open for all.
But specifically working with the like, okay, for LGBT or for tribal people, if they're doing
something. No, I'm not basically investing in any such startup. ( Time- 21:50)

ISHITA -Sir, I have a question. So, sir, how do you balance the risk and reward when making
investment decisions? (Time-22:04)

HARSHIT SIR - So in this, you will not be able to measure, balance that.
So how it happens is that the only way to manage the risk is, it's like stocks. So you can't stop
investing in just one startup. It's like stocks, like that you have a portfolio, you have some equity,
some debt funds, some equity funds, some, I'd say, index funds.
You put in some mutual funds, you put in some SIPs. Eventually what you try to time the market
that eventually in a longer term, you will get that return with ups and downs. Similar is the case
here. You have a portfolio of startups that you work with. They should not be all in one industry.
They should be in multiple industries.
They should not be working on same ideas. They should have different, different ideas. And
eventually what will happen is the idea or the thesis is that if let's say out of 10 or I'll say out of
20, if one will work, eventually your reward will return will be coming.
So that's how the thesis is. And that's why I continue investing. I didn't stop once I invested in
few. I keep on investing. I try to invest, let's say in a quarter, I try to invest in one or two startups.
That's how I try, but at least one. So if in a quarter I'm investing one, in a year I'm investing at
least four startups, four to five startups in a year. So if I'm doing that, eventually I'll keep on
adding my portfolio. And if you consider a horizon of return on any startup, it will take between
three to five years.
Any startup, if you're building cannot give you a return below before three years, two to three
years is the minimum year that you need to take. So let's say after three years, I'll be with the 15
to 20 startups that will be in my portfolio.And I'm assuming out of that, at least one will click.
And if one will click, it will give me that number. ( Time- 24:00)

ISHITA - So, sir, can you please explain some typical terms while doing investment deals? ( time-
24:08)

HARSHIT SIR - There are clear business deals. It's like business parameters. So any business
has parameters like what's the revenue they're expecting, what's the valuation.
So if you talk about startups, they start with their market sizing. So you talk about the, if I were
to talk about TAM, which is a total addressable market. So that's the starting point that what is
the market that they're addressing or what is the scope of the business.
Let's say they say that in India, I'll be catering to this particular kind of business, which will be
catering to these many customers, which can give me this much revenue. So that's how the entire
business model is being built. So TAM is one that we work on.
Then the return period, let's say, what is the return that they are expecting from this investment
and what is the period that they are looking for? Then growth valuation is the something that we
talk about, that let's say they are doing X amount of revenue.
They put in a factor in that and eventually a valuation comes out of that startup. So we talk about
that. Now fourth is after that, we talk about, let's say if I invest, if I'm investing through any other
funds or any other aggregator,
then there is a carry involved, which takes a part of a commission that is there. We talk about that
also. Those are typical terms, which any investment in any investment you talk about, and then
there are business terms for any business. ( Time- 25:39)

RIYA - Sir, as you talked about, you have invested in 9 to 10 startup. So is there any startup that
you regret investing? Obviously you don't have to name it, but you just feel that you shouldn't
have invested. You don't know what was on your mind and you just invested in it.
If you were here right now, you wouldn't have investment, but back in time, you just don't know
why you did that. ( Time- 26:03)
 HARSHIT SIR- Correct. Yes, there is one. So I felt an emotion. I was mentoring that guy and I
got into an emotion. He was a good guy, good hustler.
He was ready to build something and everything. And at that time also, I was not in a very clear
state of mind that should I invest or not? But considering my emotions, I was working with him
for a long time, mentoring him. So I played a better on him.
But in the back of my mind, I had that what he is lacking. This is a very small business. And the
biggest problem is what I lack was, which eventually became my major parameter to invest in
my future startup is the team.
So what I believe, which I felt when I was investing in this team is not strong. And the problem
was that he doesn't feel like that. He used to feel that his team is strong. And I was saying that
my team is not strong. And that was my point where the disconnect was.
And it eventually happened. So right now, we pivoted this model, but not able to do great. And
the reason is simple. He's not ready to change his team.
So I believe that was my wrong investment. And I regret that. But it's not a regret. It was a
mistake, which I learned and eventually built my thesis for future startups. So I don't do mistakes
now on that. If I don't like the team, I don't invest.( time- 27:45)

RIYA - So you're basically saying that you will keep your emotions and your brain apart if you're
making an investment so you can make the right decision. ( Time 27:52)

HARSHIT SIR- Of course, of course. So that is for any investment. If you're doing an emotional
investment, then I think God save us.
I think your investments and everything should be based on data. Your investments should be
based on your learning, your experiences. It should be pure practical. It can be anything. Let's
just stock also. If I'm saying not only angel investment, because investing in any stock, it should
not be just because it is great.
No, it's a fundamental right. The thing that you're investing in does really have a business is there
which can give you a return. Because if you are investing in emotions, it is like a gamble. And if
you're doing a gamble, it cannot be for a long term. It can only be for a short term.
And angel investment or anything doesn't happen for a short term. It has to be long term. ( time-
28:47)

SIMARJOT- like you mentioned that the team should be always strong. So what are the strengths
and the qualities that you always look for in the founders or their teams? (Time- 28:57)

HARSHIT SIR- Two, three. One is their past experience. If they have worked somewhere, I
don't, I try to check two things. One is the relevancy that what they're trying to build. Do they
have that kind of skill set? And second is if they don't have a past experience, have they done
anything?
So let's say they're not a past experience, they might be in college or they might be in any kind of
learning or something. Then I see that what they have done decides their usual learning. Let's say
if someone is sitting in a college and he is just studying, and then he got an idea to do a startup.
I say I might not bet on it because my point here is that eventually, he doesn't have that practical
experience to do that. So I would like him to have that practical experience before getting
himself into this business. He can do that. Obviously, everyone has their own choice.
They want to do it. They take practical experience right from day one betting on a startup that
they want to build. But I believe that should not be my investment place. So that's one in terms of
experience. Second is what I look into is the passion or the vision that they want to do. So how
excited they are to build this.
So they should not be, okay, I want to do this. They should have a vision. They should be very
much excited to do this. They really are passionate that okay, this is something that we will be
doing for the next three to five years. So they should not be like, okay, let's just try for six
months and then do no.
But I'm doing this. I will be building like this. And eventually in next five years, I'll make it like
this.That's kind of vision or passion should be there. And third is they should be hustlers. They
cannot be people who are like simple. They want a desk job kind of a work, right?
I feel that a person is not a hustler. It's very difficult to build a startup. They can, they can do
jobs, they can do their roles very good. But to start something on their own from zero,
you have to put in 20 hours in a day to build that. And if you're not a hustler on that
part,eventually you will basically get tired, you will fall back and eventually you will lose the
vision. So those two, three things I look into.( Time- 31:25)

DEEPIKA- So like you said, you invest in startups and companies. So what are your roles towards
those companies? Earlier you talked about how you provide mentorships. So are there any other
supports that you provide beyond funding?
(Time- 31:42)

HARSHIT SIR- So mentorship and networks, I give them connect to my network, whatever the
help they need. And second is mentorship. That's all. So I don't do anything else for now. These
two things I help them. ( Time-31: 57)

KANYA- So how do you handle situations when a portfolio company faces any difficulties or
need extra funding? (Time- 32:05)

HARSHIT SIR- So if difficulties there, we'll talk, we figure out a solution and help them in
those solutions.
They give them a direction how to execute. And if they require funding, can help them in pitch
decks, can connect them with my angel network, connect with my funds where I'm a part and
help them in getting that pitches to other investors. So that's how I help them. ( Time- 32:33)
RIYA- Okay. So I think you're done with questions.Thank you, sir. Thank you. So this is all about
the interview.

HARSHIT SIR- Thank you. Thank you, guys. I think if possible, do share me the video if you
guys have recorded. That would be helpful for me. And I will say, I think because a lot of people
look for investments. So it would be great if you can just write something like, how was your
discussion with me? What you learned and anything and just tell me.

RIYA- I think I'll be posting a LinkedIn post. I'll tag you there.

HARSHIT SIR - So what happens if any potential people who are looking for fundings or you're
looking for mentorship can reach out to me because eventually it helps them. So I think that
would be a great thing that you guys can write into.
Okay. And all the best. And in the future, if any one of you are building anything, let's connect
again. Thank you.
 LEARNING OUTCOMES-

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