The CTO Show with Mehmet Gonullu #394 Demystifying Startup Fundraising: Gagan Singh on Private Markets and Secondary Deals
In this episode of The CTO Show with Mehmet, host Mehmet Gonullu sits down with Gagan Singh, Founder and CEO of WOWS Global, to discuss the intricacies of startup fundraising, navigating private markets, and the increasing importance of secondary transactions. Gagan shares his unique perspective, having experienced both sides of the table as a venture capitalist and entrepreneur. He dives deep into how WOWS Global is reshaping the fundraising landscape for startups by providing liquidity solutions and essential tools for private markets.
Gagan starts by detailing his journey from a small town in India to becoming a venture capitalist in Southeast Asia and eventually founding WOWS Global. He reflects on the challenges he faced, especially as a founder and group CFO of the B2B logistics startup Delivere, and how his experiences informed the creation of WOWS Global. The platform, often described as an “operating system for private markets,” facilitates fundraising through various means, including venture debt, revenue-based financing, and secondary transactions, which offer founders and early investors liquidity without the need for a full exit.
One of the key topics discussed is the critical role of cap table management and ESOP (Employee Stock Ownership Plan) planning. Gagan emphasizes the common pitfalls many founders encounter, such as the lack of awareness regarding dilution and the risks of post-money valuation caps. He explains how improper cap table management can make companies unattractive to investors, particularly as they advance to later stages of funding.
Mehmet and Gagan also explore the recent trends in Southeast Asia’s private markets and the global implications of the “funding winter.” Despite the challenges, Gagan highlights how WOWS Global is helping founders prepare for fundraising by providing essential tools like virtual data rooms, which streamline the due diligence process for both startups and investors. He stresses the importance of being investor-ready from day one to maintain momentum and capitalize on investor interest.
The conversation also touches on the future of startup funding, with Gagan providing insights into the opportunities and challenges facing Southeast Asia and other emerging markets, such as MENA. He discusses the consolidation trends in various sectors and how platforms like WOWS Global are positioned to support smaller M&A opportunities.
About Gagan:
Gagan Singh serves as the CEO of WOWS Global, a Fintech platform that facilitates investor matching. This platform creates connections between promising startups and investors, streamlining both primary and secondary transactions.
Gagan's professional background includes being a Chartered Accountant by qualification. He initiated his career in the realm of corporate finance with Vedanta Resources, a conglomerate based in the UK. Subsequently, he relocated to Southeast Asia to contribute his expertise at Polyplex.
During his career journey, Gagan ascended to the role of Partner & CFO at Inspire Ventures. In this capacity, he made strategic investments in startups like aCommerce, Deliveree, Super Awesome, Totally Awesome, and Softbaked.
https://www.linkedin.com/in/gaganajmani/
00:00 Introduction and Guest Welcome
01:09 Gagan Singh's Background and Career Journey
02:51 Founding WOWS Global
03:09 WOWS Global's Offerings and Services
04:47 Challenges and Solutions in Private Markets
12:02 Importance of Cap Table and ESOP Management
18:00 Valuation and Fundraising Strategies
25:30 Impact of Funding Winter and Market Corrections
28:11 Building Fundamentally Solid Businesses
28:23 The Complex Journey of Founders
30:02 Understanding Fundability and Traction
33:00 The Importance of a Virtual Data Room
38:10 Streamlining the Investment Process
44:39 Trends in Southeast Asia and MENA Markets
51:54 Conclusion and Final Thoughts