Invest in startup
I want to understand how to invest in startup and negotiate amount of investment vs evaluating valuation vs stake holding? Also what are the key things i need to know before investing? Thanks in advance
How much are you looking to invest
Upto a lakh
You can check out platforms like tyke but be wary. It's more difficult to make good money through there plus it's illiquid.
Until the company raises more rounds or goes public you can't do much with that money. Finding buyers for your equity will be difficult.
Might be better for you to invest in some startup round directly where you know the founders/team personally.
You wont get allocation for 1 lakh. Ideally start at 5 lakhs, so do it once you are there. Also, when you start be mentally ready to make at least 10 bets. With the hit rate of success its only way the asset class makes sense for you.
You should try signing up on AngelList and apply to join a syndicate you like and understand. By that I mean you understand the sectors and sub sectors they invest in. That way you can try to find opportunities closer to comfort zone. Happy to answer any more questions if you have.
When it comes to tyke and the likes read the agreement carefully, answer the following questions:
Make a thorough assessment of what you own, the rights that ownership provides and how do you exit or liquidate plus recovery scenario in case it all goes to shit n
If you are looking to bring a lakh to the table then start presenting non monetary value to early stage startups and to provide that get equity for that amount
Mat kar bhai meri tarah sad ho jayega
I want to understand how to invest in startup and negotiate amount of investment vs evaluating valuation vs stake holding? Also what are the key things i need to know before investing? Thanks in advance
Got to know from someone that ppl invest amount in this range & get return on sales basis instead of the equity.
Got to know from someone that ppl invest amount in this range and get return on sales basis instead of the equity
Hi Grapevine,
I'm Sajith, Partner at Blume Ventures, where I oversee consumer and India B2B investments.
I am a long-time media executive turned VC. After a two-decade-...