The non-VC funding path
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Several entrepreneurs in India I come across have an ambition to build steady-growth, profitable & fundamentally solid businesses. While they’re not fit for VC funding (size/speed expectation mismatch), debt availability is also low for them early on. And so their business suffers and such entrepreneurs feel orphaned by India’s investor ecosystem.

While royalty-based funding has been around globally it hasn’t surfaced in India yet. This YC demo day promised that the time for income share funding might have come in the US, but will take time before we see it here.

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Why Meesho is in our anti-portfolio
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In today’s Livemint, Globevestor’s co-founder & Partner, PN Raju writes about a successful company that’s in our anti-portfolio – Meesho. Here’s the complete article on Livemint.

Sometimes as investors, we don’t see the strength of the underlying trends as well as the entrepreneurs, so it’s useful for us to hear out and learn from them. If you’re building a venture to take advantage of some strong underlying trends in a sector that not many people see, ping me!

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Reverse Pitch for AI startups
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In today’s Livemint, I wrote about some of the areas we’re looking to invest in at Globevestor. In this article, the focus is on ‘AI at workplace’ companies. You can read the article on Livemint here.

We believe that for businesses to thrive in the future, human intelligence and artificial intelligence (AI) will need to work in tandem. And that the next wave of ‘AI at workplace’ startups would help employees become better at their jobs.

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Why do investors ask startup founders for stock vesting/ restrictions?
Why do investors ask startup founders for stock vesting/ restrictions?
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A majority of founders today seem to be comfortable with stock vesting provisions in termsheets. However, still encounter a few (usually first-time) founders who see vesting as investor tactic to gain more control. Some feel they’re being forced to ‘earn’ ownership in their own ventures.

This interpretation of vesting is harmful. Investors invest in the mid-long term future potential of a startup, and the team sticking around to achieve its ambitions is key. A non-executive founder (w/o day-to-day role) is as good as dead equity. If a founder leaves, it’s a big blow to the execution ability of a team.

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Thumb Rules of Angel Investing
Thumb Rules of Angel Investing
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The past 2-3 years have been a golden period for the Indian startup ecosystem. The exponential growth has slowed a little only in the past few months, as it has globally. Steady growth and positive macro-economic factors since 2008 created a huge opportunity that a few smart entrepreneurs spotted early. Their success has created an environment where entrepreneurs are no more outcasts, but are instead the rockstars.

In parallel, the local angel investing ecosystem has boomed as well. As a result, many investors who aren’t close to the startup ecosystem are beginning to invest in startups. Sometimes, they do it without understanding the associated risks.

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