The Neon Show

10 Unicorns, 5 IPOs, 26 Acquisitions – India’s OG VC, Avnish Bajaj On Why Only Founders Matter

Mar 21, 2025

Avnish Bajaj, Founding Partner at Z47 and co-founder of Matrix Partners India, brings two decades of VC experience to the table. He discusses how founders should select the right VCs, the importance of operational support in building relationships, and why second-time founders have an edge in today’s market. Bajaj reveals insights into India’s evolving startup landscape, emphasizing the significance of founder-market fit and a long-term investment perspective. Tune in to learn what truly drives success in the competitive world of venture capital.

01:18:01

Episode guests

Avnish Bajaj

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Z47 exemplifies loyalty and trust by supporting founders during adversity, strengthening their reputation in the startup ecosystem.

The shift from favoring first-time to second-time founders reflects the growing recognition of experience and caution in entrepreneurship.

India's VC landscape is evolving as limited partners seek predictable returns, highlighting the potential for sustainable growth in startups.

Deep dives

The Significance of Reputation

Reputation plays a crucial role in the investment and entrepreneurial landscape, especially during challenging times. For instance, Z47 stood by a founder who faced unjust imprisonment, demonstrating the importance of loyalty and support in building trust. This commitment helped reinforce the firm's reputation in the startup community, highlighting that true reputation is established not during success but rather during adversity. Such experiences create a lasting impact, leading to a strengthened bond with founders who remember the assistance they received.

Intro

1min

Navigating the VC Landscape in India

16min

Evolving Dynamics of Venture Capital in India

32min

Understanding Investment Frameworks in Indian Venture Capital

1min

Shifting Entrepreneurial Ambitions in India

17min

Rise of Second-Time Founders in Indian Entrepreneurship

7min

Building a Cohesive Team Culture Through Values and Mindset

3min

In this episode, Avnish Bajaj, Founding Partner at Z47 (formerly Matrix Partners India), shares what it takes to build one of India's most competitive VC firms and land the best startup deals.

With over 20 years of experience, Avnish has been at the forefront of India’s venture capital industry. He co-founded Matrix Partners India in 2006 after a successful entrepreneurial journey with Baazee.com, which he later sold to eBay, serving as its Chairman & Country Manager.

From founder to angel investor to VC, Avnish has done it all—scaling businesses, backing category-defining startups, and navigating the challenges of venture investing. His portfolio includes Ola, Razorpay, Country Delight, Practo, Quikr, and many more.

Tune in as we dive into his insights on winning the best deals, building a top-tier VC firm, and the evolving startup ecosystem in India.

0:00- Introduction

2:58 - How Founders Should Choose VCs?

9:02 - Z47 as an Operator-Led VC

15:32 - Generalist vs. Specialist VCs

20:24 - India’s VC Ecosystem in Last 20 Years

6:38 - First-Time vs. Second-Time Founders

31:48 - Founder-Market Fit Explained

35:18 - How LPs Allocate Money in India?

46:22 - How Investors Bet on Countries & Assets

52:09 - Can Tech Founders Run Multiple Businesses?

57:06 - Is India’s Market Ahead of Entrepreneurs?

1:01:10 - Rapid Fire: How Z47 Picks Founders

1:03:44 - Is Seed Stage Funding the Only Battle?

1:11:21 - When VCs Like the Founder, Not the Market

1:14:11 - Z47’s Work Ethic

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Hi, I am your host Siddhartha! I have been an entrepreneur from 2012-2017 building two products AddoDoc and Babygogo. After selling my company to SHEROES, I and my partner Nansi decided to start up again. But we felt unequipped in our skillset in 2018 to build a large company. We had known 0-1 journeys from our startups but lacked the experience of building 1-10 journeys.

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This video is for informational purposes only. The views expressed are those of the individuals quoted and do not constitute professional advice.

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