reimagining venture capital in india
DESCRIPTION
Karthik Reddy of Blume Ventures, a micro-VC fund based in Mumbai, talks about how VC business across the world is undergoing a massive change.TRANSCRIPT
Reimagining Venture Capital
INK 2013, Kochi
Karthik Reddy, INK Fellow
“Whatever is given / Can always be reimagined”
- Seamus Heaney, Nobel Prize winner, 1939-2013
“Maybe some percentage that’s substantially larger than 95 percent of VCs add zero value. I would bet that
70-80 percent add negative value to a startup in their advising.”
- Vinod Khosla, Techcrunch interview, Sept 2013
“There are not enough strong VC investors with above-market returns to absorb even our limited investment capital”
- from Kauffman Foundation Report titled “We Have Met The Enemy….and He Is Us”, dated 2012
“For an industry that claims to be financing innovation everyday, its been remarkably unimaginative
around its own business model over a 50 year period”
- The folks reimagining venture capital in Silicon Valley today
“Most men die at 27, we just bury them at 72 ”
- Mark Twain
True of business models too?
The Venture Capitalist is Dead!
Long Live the Venture Capitalist!
Venture Capital ≠ Money
Venture Capital = Money + many other things
VC = “Superhero-Concierge”
FPGFriend, Philosopher,
Guide
Managing
Uncertainty
+ +
+ +Hiring
© youguysaremyfriends.com
VC 3.0: US markets foretell the story
Change, nay, disruption, is coming…..
The New Age of Venture Capital
“Platforms”
“Accelerators”
“Crowdfundin
g”
“MicroVenture Funds”
“Superangels”
The New Age of Venture Capital
Startup Founder “New” VC avatar
Both ‘Jack of All Trades’
….Hustlers, Hackers, Hipsters.…of a good kind
Finding / Funding small is key,funding large is the commodity
✔
Entrepreneur = customer,Fund investor not equal to
customer
Venture capitalist = entrepreneur, not fund
manager
New Equations
Network effects are the winners, not cheque sizes
✔
Capital = Fuel Pipe
Design
Teamwork
Speed
Managing Risk
✔
Founder as Superhero
Founder hires Superhero team
✔
Building a new culture around Entrepreneurship
– Its not just Business, its personal!
VC not just about returning Capital;
also about impact!and about Problem Solving!
Emerging venture markets will leapfrog and converge with US
practices
So, what should the key METRIC for a Venture
Capitalist be?Metric: Oh Venture Capitalist! When you’re gone, how many
entrepreneurs will come to pay their last respects?
The only thing that matters is
PROBLEM SOLVING