About Me

 

Utilizing this digital window to share my understanding of the funder and founder relationships and….
several other things that intrigue me!

When is the right time for an investor to give up working with a venture? 
As an entrepreneur turned investor and very competitive person, I have had to grapple with this question many times in my seven-year career as a startup investor. There have been instances when the decision was as clear as night and day, instances when I have clearly held on for too long and instances where I have given up too early. My team and I have learnt from those experiences and incorporated those lessons in our future investment endeavours. 
However,¬†there¬†is a¬†grey area wherein¬†the¬†venture is doing well, numbers are trending¬†positively, the¬†total addressable market huge¬†but¬†there¬†are¬†certain¬†factors¬†that¬†prevent¬†the¬†venture from achieving¬†the¬†‚Äúescape¬†velocity‚Ä̬†that separates¬†a¬†good venture¬†from a fantastic one.
Some scenarios include businesses that have transformed into a lifestyle business for the founder, the sector becoming heavily regulated, the inability of the founding team to pitch their business well to new investors or invoke the confidence that can drive bigger cheques. It is these ventures that cause the most heartburn because they have all the ingredients to make a great company but just a few factors make them plateau.  
There may not be a¬†10-point¬†checklist for an investor to decide whether it is time to pull the plug¬†or not, but I‚Äôll leave you with this¬†insightful piece of advice from AVF’s CFO/Growth Partner¬†that¬†helped me¬†seal the fate¬†for¬†a venture¬†that¬†I have¬†been rolling over hot coals for, for¬†the past¬†2¬†years.¬†He said,¬†‚Äúif after 2 years, this is how they speak to¬†you, how will they speak to future investors 2+ years from now?‚Ä̬†and my decision after that,¬†was just that easy.¬†¬†
59/2018

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