INVESTORS DON’T FUND STARTUPS ANYMORE

This month, instead of starting with a case study or business theory, let’s walk straight into a short piece of dialogue. Read it once.

Investor: ₹50 lakh is all we can commit to you.

Founder: All right. We can still structure it to work for both sides. Will you be open to adjusting equity or adding a revenue-share clause?

Investor: Please explain what it means.

Founder: We can give you slightly higher equity for the ₹50 lakh now, and add a small percentage of revenue until the entire investment of yours matches the ₹1 crore valuation. This means that your return will scale as my company will grow.

Investor: It all aligns risks and rewards. Makes sense.

Founder: Yes, you are protected with a smaller upfront commitment, and my company stays motivated to reach goals as early as possible.

Investor: Deal.

So, what do you think just happened? Did the investor fund the startup alone?

Products change, markets shift, and teams evolve. What doesn’t lose its charm is the founder’s ability to negotiate, and that’s exactly what investors are really funding these days.

Guess who we had on our Saksham Yatra podcast last month? He is one of the most distinguished Indian Air Force officers who has worked at the highest level of decision-making in the IAF: Air Vice Marshal Rajeev Sharma. To watch the full episode, you can visit: youtu.be/GQAxhU-jm6A?feature=shared  

Nobel Peace Laureate Kailash Satyarthi ji joined us at the inauguration of MaNaS (Mahesh Navani School of Brain, Body, and Behaviour) in our Rishihood University. He seeks to globalise compassion in this world that has globalised markets and resources, making it all deeply meaningful for us. 

This Raksha Bandhan, I received hundreds of rakhis from my franchise partners, parents, and particularly students across the country, along with handwritten notes, chocolates, and greeting cards. I take this moment to express my immense gratitude for the trust, affection, and respect it all symbolises.