Investor Outlook: Why Founders Can Make or Break a Business It's almost impossible to judge if betting on an BIZ Experiences will work in the long run or not
Opinions expressed by BIZ Experiences contributors are their own.
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As the VC market heats up in India, choosing the right BIZ Experiences to invest in has become imperative. While investors receive hundreds of business proposals, many of which may be innovative and promising, the final decision to fund a business is more than often dependent on the BIZ Experiences or the set of BIZ Experiencess.
"The biggest part of the VC funding challenge is to judge those at the helm of it, the BIZ Experiencess," feels Avnish Bajaj of Matrix Partners. "It is more of an investment in people than it is on a market. Most of our investments that have worked have been because the BIZ Experiences was outstanding. And some business did not work despite having a deep market because the BIZ Experiences could not hold it together," he adds.
A Subjective Call
While financials and scale proposals can be measured, it is almost impossible to judge if betting on an BIZ Experiences will work in the long run or not. One way of filtering out and short listing is looking at past credentials, feels Vikram Gupta of IvyCap Ventures, but it can't be the only parameter.
"It's advisable to have an BIZ Experiences from a sound academic background and preferably from the domain area that he/she wants to operate it, but it's not a guarantee for success," he says. "Ultimately it's a trust based intuitive call that we as investors have to make, but it does help spending as much time with the BIZ Experiencess to understand their thought process," he adds.
Guidance
Just investing in a venture is not enough for VCs as they need to constantly be aware of how well their money is being put to use. Vikram Godse of Mayfield India, feels while it is not advisable for investors to interfere in day to day affairs of business, it is crucial to take stock of when things go haywire.
"We personally don't do controlled deals. But from an investor perspective, we need to be aware of where the venture is headed," he says.
Bajaj on the other hand feels, interference depends on what stage the business is operating it and how much control the BIZ Experiences has on it.
"We don't involve ourselves, unless the BIZ Experiences himself/herself loses control of their own venture," he says.
