Where is the Money Heading? Investors Talk at Entrepreneur India Summit 2016
2016 has been all about allotment and accepting the appropriate investors on board. While backward circuit accept been apathetic and cheque sizes accept diminished, early-stage allotment has witnessed a lot of investors abutment this year.
At the Administrator India Summit in New Delhi, investors from altered platforms batten about challenges of acrimonious the appropriate entrepreneurs and provided admired insights on the advancing allotment mural in India and alternative markets.
When the activity is tough, best is to invest?
Sanjay Nath, co-founder and managing accomplice at Blume Ventures, believes that sometimes it’s best to invest, aback the activity gets tough. According to him difficult allotment division will advice choose the crust from the best startups in the business.
“We’d like to say that the VC and the allotment business is not like fashion, wherein, fads change every ages and it’s not our business to predict. But one affair I would absolutely like to say is that there’s a lots of advance in the alternative India, (i.e.) the B2B or the action market. Whether it’s fintech, or edutech or the SaaS market, a lot of bulk businesses and IT led businesses are activity to get funded. Even in the B2C, it’s not activity to be aloof pure-play, but a lot of enablers are activity to get funded,” he said.
When asked about his expectations from the government for the ecosystem, Sanjay said that it was too aboriginal to allocution about the government’s initiatives, but said that it was actual absolute that these initiatives were demography place.
Amit Somani, Managing Accomplice at Prime Venture Partners, batten about why his close actively invested in early-stage startups this year. According to him there is abundant befalling in fintech and alternative types of early-stage start-ups, which hasn’t afflicted and hence, they accept actively invested in 2016.
When asked for domains that the close affairs to focus on for the abutting 6-7 months, Amit said, “We are actual bullish on fintech – disruption of banking casework application technology. We are attractive a lot on all-around SaaS and thirdly, we are additionally attractive at SMEs that are additionally alpha to use technology.”
Sandeep Murthy, Accomplice at Lightbox, said that aboriginal date doesn’t feel the appulse of abatement because according to him at an aboriginal stage, all you accept is an abstraction and a concept. “At an aboriginal stage, whether the bazaar is hot, or whether the bazaar is bad, you are still out there aggravating to argue bodies about your idea. In a hot bazaar award aptitude ability be a bit of a challenge, whereas, award money ability be easy. I anticipate there are assets and minuses to any aeon and the affair to bethink for any startup is that every aeon is like a roller coaster ride and things will go up and they will appear down. The affair to bethink is to be able and get your abode in adjustment to ride the abutting beachcomber out,” he said.
Sandeep, like Sanjay Nath of Blume, agreed to the actuality that recessions are times to get the best companies built. “Companies that appear out of this are activity to be actual able and are activity to accept able fundamentals with abundant bulk of learning,” he said.
Is SaaS the new gold in startups?
A brace of investors there showed their absorption in allotment SaaS-based models. On allurement what makes an ideal SaaS –based model, Prashanth Prakash, Accomplice at Accel Partners said, “Entrepreneurs starting action companies absolutely don’t charge to be acceptable alone in product, but the aggregate of articles and online marketing. We accept begin actual few teams, which accept both the engineering and artefact faculty and at the aforementioned time can bazaar the product. The ability of a aggregation that can body a acceptable SaaS artefact will booty some time in our ecosystem. But I anticipate that’s breadth acceptable role models like Freshdesk and advisers appear into the picture,”
“I anticipate you are starting to see entrepreneurs go afterwards this amplitude with the appropriate teams and in some cases they charge cross-border capabilities. It’s not abundant if the aggregation can body the artefact and bazaar it, but it’s important that they bazaar it globally. So if one of the founders has not lived away or one of the founders has no roots in the western geographies, it’s afresh difficult if he is a aboriginal timer in this space,” Prashanth added.
According to Prashanth there are two ample categories of SaaS- accumbent and vertical. “A accumbent artefact would be HR that will baby into amount and alternative things. Vertical SaaS is an breadth we at Accel absolutely focus on, because we accept these are high-value confusing opportunities,” he said.
Startup mural in India’s neighbourhood
Pankaj Jain, Accomplice at 500 Startups, aggregate his angle on the startup ambiance in Sri Lanka and Bangladesh. “Sri Lanka and Bangladesh are both actual absorbing markets. They are both actual adolescent and alpha markets with a lot of altered opportunities but about to anniversary other. I anticipate Sri Lanka has an abundantly accomplished population, markets are analogously small. What I accept noticed is thata lot of non-resident Sri Lankanhave appear aback to Sri Lanka and are starting technology companies, attractive at markets in SE Asia, Africa, Pakistan and in some cases alternative markets as well. Now there are opportunities for them that a lot of Indian entrepreneurs aren’t cerebration about because India in itself is such a ample market. These entrepreneurs accept to attending at ample markets from the alpha because they accept no choice. So they can do their aboriginal MVPs in Sri Lanka and again go out internationally,” he said.
Talking about Bangladesh, Pankaj said that Bangladesh is array of in the middle. “Bangladesh has a adequately ample calm market, apparently abundant added agnate to India than SL is. A lot of non-resident Banglaeshis accept confused aback to Bangladesh and started companies. Bodies accept now started to accoutrement aboriginal VC firms and accelerators in Bangladesh. There are investors from Japan and Singapore that are actively attractive at Bangladesh because abounding of them didn’t see the deals in India 5-10 years ago, so they absent out and are now aggravating to go to Bangladesh early,” he said.
“What I absolutely like about Bangladesh is that if you are an Indian entrepreneur, you can actual bound accept how Bangladesh works. The two markets are agnate in a lot of ways, however, there are a lot of differences that abide in abounding alternative ways. But it is apparently easier to go into the Bangladesh bazaar than say to go into the Average East, ” he added.
Bullish on calm opportunity
Talking about the venture’s calm action for the abutting brace of months, Pankaj said that in the best appellation he is actual bullish about the calm opportunity, which includes calm content, video and fashion. “Right now I am added bullish on B2B articles both domestically and internationally. We will abide to attending at B2C opportunities. I anticipate there are abbreviate appellation and continued appellation opportunities and India has so abounding of both,” he said.
Pankaj additionally added that on a claimed point of appearance he is absorbed in areas of fintech, health, apprenticeship and colloquial content.
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