Arjun Rao, Co-Founder and Partner at Speciale Invest, dives into the world of early stage fundraising and venture capital. He shares insights on when and how to raise funds, emphasizing the vital role of storytelling and building relationships with investors. Arjun reflects on his entrepreneurial journey, the evolution of deep tech investments, and key lessons on navigating the VC landscape. He also discusses the significance of resilience and adaptability in the startup ecosystem, making it a must-listen for aspiring founders!
Arjun Rao shares his entrepreneurial background, emphasizing the value of learning from failures and understanding market demands before raising funds.
The podcast highlights Speciale Invest's focus on deep tech investments to support innovative companies within sectors like space tech and electric vehicles.
During the ongoing funding winter, entrepreneurs are encouraged to demonstrate resilience and prudent strategies for customer acquisition to secure funding.
Deep dives
Founder's Entrepreneurial Journey
The speaker discusses his extensive entrepreneurial journey, beginning with his experience at Yahoo, which provided a foundation in product development within the tech industry. After transitioning to business school, he was involved with an early-stage startup, GoIBIBO, where he gained valuable insights into building products and connecting with customers. His journey includes launching a couple of startups, learning hard lessons from failures, and realizing the importance of understanding market demands and sales cycles. This background not only shaped his perspectives on entrepreneurship but also fueled his desire to support others in their ventures.
Transition to Venture Capital
After reuniting with a friend who had a successful career in venture capital, the speaker began exploring angel investing alongside his entrepreneurial efforts. They formed a syndicate for investing in early-stage companies, drawing from their personal networks and experiences as entrepreneurs. The success of these early investments, which led to several profitable exits, built their confidence and guided them towards establishing a formal venture capital fund in 2017. This transition was motivated by their understanding of the challenges faced by entrepreneurs and their desire to provide not only capital but also hands-on guidance.
Focus on Deep Tech Investments
The venture fund places a strong emphasis on deep tech investments, filling a perceived gap in the Indian startup ecosystem that traditionally centered on IT services. The speaker highlights their actively explored sectors, including space technology and electric vehicles, to drive innovation and competition in the market. They specifically mention successful investments in pioneering companies within the space tech arena, such as AgniKul, which creates advanced rocket launch solutions. By investing early in these deep tech ventures, they aim to leverage India's existing strengths in tech to build sustainable, innovative companies.
Navigating Funding Trends and Challenges
The speaker reflects on the ongoing funding winter impacting the startup ecosystem, emphasizing how venture capital is being deployed more cautiously during this period. This cautious approach can lead to a slower deal-making process while prioritizing established companies with promising traction. The need for startups to demonstrate resilience, prudence, and a solid customer acquisition strategy is underscored as crucial for navigating this challenging environment. Despite these difficulties, the speaker is optimistic about the future, encouraging entrepreneurs to remain focused on building robust businesses during lean times.
Advice for Entrepreneurs
In closing, the speaker emphasizes the importance of long-term commitment and focus for entrepreneurs, especially during turbulent market conditions. He advises founders to seek strategic relationships and support that can help them navigate challenges while avoiding unnecessary risks in capital raising. By building a strong, passionate team and maintaining frugality, entrepreneurs can enhance their chances of success in both good and bad times. Ultimately, the message conveys that the entrepreneurial spirit in the ecosystem remains vibrant, and with dedication and perseverance, business growth is achievable.
In Episode 4 of Unotumbler Stories, we are in conversation with Arjun Rao, Co-Founder and Partner at Speciale Invest! Speciale is a unique Deeptech focused early stage VC fund, with a current fund size of INR 300Cr. With successful investments across Robotics, Space Tech, Gaming, Dev Tools, Mobility & Climate Tech among others, Speciale has quickly created a solid niche for itself in the VC ecosystem!
Hear as Arjun recounts his own journey as an entrepreneur in the VC space and how his co-founder Vishesh and him started Speciale Invest. Get a masterclass on early stage fundraising! Hear some truly candid and fabulous insights on - When to raise money, what to do, what not to do, how much to raise, how much to dilute, how to break the clutter and a lot more! Get deep insights into how VC funds operate and how VCs think and decide on investing. A must watch for all early stage founders who are looking to raise money!
Innovation Backers, Approachable and Pragmatic - these are the good-guys VCs you definitely want in your corner!