Más contenido relacionado Similar a Exit for Startups : An investor perspective (20) Exit for Startups : An investor perspective 1. © Shailesh Vickram Singh
Exits for Startups : An
investors’ perspective
Shailesh Vickram Singh
twitter : @svickram
blog : fringenotes.in
2. © Shailesh Vickram Singh
(shameless)Self promotion
• 20 years of experience as entrepreneur, venture investor and corporate strategy professional
• Building a fun and incubator in area related to Climate change, Renewables, Agriculture, Food chains,
Water & sanitation
• Executive Director - SeedFund India
• Was MD with a PE fund ($170 mn fund, 2.1x return) for 5 years before moving to venture space
• Exits ~ RedBus (triggered the deal with GoIbibo), 3 IPOs, 5 M&A / Strategic sale
• Co-founder of Zygote Tech in 1999/2000, Successfully scaled up without any external fund infusion
• Guest faculty, mentor and jury member at various IITs / IIMs / FMS etc
• Passionate about Environment / Rural Development / Startups / Technology
• Writer/author on Policy, Economics, Environment, Tech & Startups
• B.Tech (GB pant - Pantnagar) + MBA - (IIM Lucknow), TiE Charter member
4. © Shailesh Vickram Singh
The Startup Haiku
“They created a website with a brief video.
It went viral,
They bought a yacht”
source - Dan Norris
http://wpcurve.com/is-startup-validation-bullshit/
5. © Shailesh Vickram Singh
However as it happens, all these stories always
happen with Neighbor son or with Some US startup.
In immediate world, the exits loos like
7. © Shailesh Vickram Singh
Why Exits matter that
much ?
Profitable business 30 Cr revenue
Buy back by
founders?
3x return is
wastage of money
100x / 50x
9. © Shailesh Vickram Singh
The VC Math
• 2: 20 model
• 8 Year Fund life + 2 years ( on Average)
• Fund deployed (88% or less, rest fee)
• Need to earn a minimum 3x (pass grade
return)
12. © Shailesh Vickram Singh
The exit
Quantum matters and that
determines nature of exit and that
determines type of business
13. © Shailesh Vickram Singh
means …
Following doesn’t matter :
•Just another business
•Profitable business
•Super niche business
•Highly profitable but tiny niche business
or
•Buy back by founders
14. © Shailesh Vickram Singh
Hence …
When you think of starting up
•Think of exits and not anything else, as exit
scenarios determines the nature of investor
as well as behavior of investor
15. © Shailesh Vickram Singh
Creating focus on exit
When you think of starting up
•Think of exits and not anything else, as exit
scenarios determines the nature of investor
as well as behavior of investor
16. © Shailesh Vickram Singh
So what creates great exit? (in theory)
• Trust / Chemistry between Fund & founder
• Value creation by investors
• Great corporate governance
• Solid management team