The Investment Virtuoso Harnessing Opportunities, Igniting Success

Team proficiency holds paramount significance for investors. Many deals may seem promising initially,

5
(2)

By Kapila Nagpal

Discovering a potential investor for your idea can be an exhilarating and promising moment. Isn’t it? You will be filled with a mix of positive emotions, blending excitement, optimism, a bit of nervousness, gratitude, and the motivation to take your idea to new heights. Interview Times met one such dynamic investor Amit Singal, Founding Partner- Fluid Ventures & Real Time Angel Fund, Director- ASR & Greenzo who is not just an investor but a partner who believes in the power of innovation and is committed to turning dreams into reality. Some excerpts from the interview-

 

How and why did you get into the business of becoming an investor?


The allure of the start-up ecosystem captivated me in 2004, stemming from a background of conducting statutory audits for multinational and listed companies. The structured environment of large corporations stood in stark contrast to the dynamic, unpredictable world of start-ups. Interacting with young, energetic entrepreneurs fuelled my interest further, as their future-oriented mindset brought a refreshing perspective. So that’s how I started a start-up buddy in 2015 to support new businesses in various front like compliances, accounting, financial literacy, intangible property rights, shareholder agreements etc. Hence, we created all the divisions under one roof to provide them 360 degree support function.

 

What is the typical success rate of new ventures?

 

In the realm of start-ups, it’s a common acknowledgment that a significant proportion—perhaps even the majority—may encounter challenges or undergo transformations. Rather than labelling these experiences as outright failures, many in the start-up ecosystem prefer to characterize them as stepping stones toward growth and innovation. There is either success or the second word is learning.

 

What type of yield can an investor expect ?

 

While it’s true that seven start-ups out of ten face challenges and don’t achieve the desired success, the remaining three have not only weathered the uncertainties but have also exceeded our expectations, providing substantial and gratifying returns. These three remaining companies usually give us noteworthy success rate that outweighs the setbacks.

 

Now the question arises that earlier I was saying that the success rate is 10%.
And now I am saying the success rate is 30%. Why there is a delta? Because out of ten, four start-ups failed because they do not get funding from anyone. In a way only out of 10 start-ups investors are investing their money only in six start-ups as investors are also very intelligent they know that where they will make money. So out of six start-ups if one or two ventures also succeed, it means that it is a 30% return kind of thing for the investor.

 

 

Does your company participate in investing in existing or moderately established ventures?


As a fund manager, my responsibility is to adhere to the instructions and rules set at the time of securing funds from investors. Our fund’s investment focus is exclusively on start-ups, and we are restricted from investing in mainstream markets or other areas due to the categorization in alternate investments, specifically under category 1. This classification confines us to invest solely in start-ups. Regarding specific industries, Fluid Venture concentrates solely on direct-to-consumer brands. We deliberately avoid investing in companies where the primary product is technology.

 

Why are investors hesitant to invest in service oriented sector?

 

Indeed, in the service-oriented sector, many investors are hesitant to engage due to the inherent challenges associated with scalability. The service industry often grapples with scalability issues as it heavily relies on established processes and personal goodwill. The nature of services makes expansion more intricate compared to product-based ventures, where replication and scalability are relatively more straightforward. So that is why we are fully focusing largely in the direct consumer grants.

 

Are there specific sectors in which your investments have seen notable success to date?
Certainly, within the D2C subsector, we don’t have a specific niche we exclusively target. Our primary criterion revolves around choosing products with slightly higher gross margins to cover logistics and marketing expenses inherent in the D2C model.

 

Reflecting on our portfolio, Master Chow stands out as a success story in the food industry, benefiting from the increasing consumer adoption of food-related products. Koparo Clean, specializing in clean products, has also thrived, particularly in response to the growing demand for chemical-free solutions in the real estate sector.

 

What are your typical anticipations or aspirations from a start-up?

 

Certainly, when evaluating a start-up, I primarily focus on the founder’s passion and the complementary skills of the founding team—two critical factors. However, it’s important to note that these are not the sole criteria for investment decisions. Assessing market size, consumer demand, and the viability of the proposed solution are equally crucial aspects. While investors often analyze various factors, the ultimate success hinges on the execution capabilities of the team.

 

Team proficiency holds paramount significance for investors. Many deals may seem promising initially, but the execution team’s capabilities are often the deciding factor in a start-up’s success. Consequently, we actively engage with companies in which we’ve invested, recognizing that our involvement is crucial for their success. As a representative of investors seeking substantial returns, my role as a fund manager involves close collaboration with start-ups. While not directly involved in day-to-day operations, we provide support and guidance to ensure the start-ups’ success. While it’s acknowledged that not all ventures may thrive, we work closely with them to understand challenges and strategize for success.

 

Rapid Fire
Date of birth-9th August
Your favourite actor-Amitabh Bachchan
Your favourite actress-Madhuri Dixit
Your favorite cuisine-Indian traditional.

Do you find this post useful?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 2

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Subscribe to our Newsletter

1 comment

Temp YahooMail December 28, 2023 - 6:05 pm

Good post! We will be linking to this particularly great post on our site. Keep up the great writing

Reply

Leave a Comment