Investor's Lens on the Startup Ecosystem ~ Part 2

Nov 27, 2021

The following is part2 of a series- where we will have Mr. Brijesh Damodaran, Founding Partner of Auxano Capital, sharing his views on the startup ecosystem from an investor's lens.. Read more to find out !

In the earlier part , we shared the interest among the investors across the landscape in the startup eco-system . 

In this note, let’s understand what is the responsibility of the ecosystem to ensure that the interest of the investors is not only maintained but also grows.

It’s important that the ideas created by the local populace of the nation are promoted by the local nationals and the wealth which is created is also enjoyed in the nation itself .

Does it sound nationalistic ? Why should one be apologetic about this ? 

It’s important that the players in the eco-system do not take any of them for granted - starting with the founders- the venture capitalists (who channelize the capital for investments ) - investors ( who invest in the ideas of the founders).

For a venture capitalist ( VC ) who invests in the founders and their ideas ,

  • It’s important that an environment of mutual trust is created right from Day Zero
  • Share upfront
    1. The expectations with the founders ,and
    2. Also the anticipated outcome
  • Connect the founders idea with the right people and look out for an inclusive growth .
  • Most importantly giving the emotional support ( like it was required in the year 2020) to the founders . 

Also, being a VC , it also has a responsibility to inculcate discipline into the founders , if they are not . For eg. submission of monthly MIS, compliance with regulations , and many more .

As an investor , who is investing in the founder as an angel or as a LP ( Limited Partner ) , do not consider the investment as a roulette. It’s the asset you are putting into use to fund the dreams and vision of an entrepreneur. Find the right reason to invest . 

For an entrepreneur , who has been able to attract Capital into the venture, its all the more important to share the update of the progress in a regular consistent manner. Share the MIS reports on a monthly / quarterly basis – especially the revenue numbers, the expenses / burn , as also the runway of the cash . Also, every investor has its unique role to play as the enterprise grows – be it in providing the early stage capital, connecting with the right persons in the eco-system , a sounding box for ideas and more. 

All 3 – founder – the investor – Venture Capitalist are links of the chain, which are inter-connected. A loose link at any of the ends will kill the eco-system.

Author(s) :
Brijesh Damodaran