Answered produced feed
D 4 · C 5 · P 5 · Cm 4 4.55
Q And what's the percentage you own in these companies?
A Um, so I think, you know, what in my past experience I've learned is over ownership is never good. I mean, it's greed basically that you want to try and, you know, own too much. Uh, and then you realize that, you know, there's no point of owning 40% of a company, which is worth five crores. You rather own 20% of a company, which is worth 50 or, you know, 10% of a company, which is a hundred. Uh, so we are very lenient with our founders. What we do is, uh, in, in some structures, which we are not able to prize in the round on the first stage itself. Uh, we do a minimum equity of about 10, 12%, and do a warrant structure, which gives both the founder something to play with, and it gives us some kind of a downside protection. So, we, we keep out, you know, we set out some performance milestones, which are agreed upon by the founder. If they can meet it in 12 months, they can claw back equity from us, or vice versa, we claw back equity. So, the idea is, you know, try and be as, you know, Fair towards the ecosystem and its founders, uh, versus being greedy. Um, so that's really our style. So, you know, I would say typically we straddle between 10 to 18% at max. I would not want to be on owning more than 20% of any company at all.
AI assessment note: “typically we straddle between 10 to 18% at max”
Answered produced feed
D 5 · C 4 · P 4 · Cm 4 4.30
Q But how does it feel, you know, going from an independent entity to, uh, heading a fund? Because it's more responsibility like now, and correct me, it's more like a job right now.
A Yeah, absolutely. So, I mean, uh, you know, managing others' money is a fiduciary responsibility, uh, and they're clearly, I mean, it, it is exactly like you termed it, right? It's a job, uh, which you have to take very seriously. Uh, you have SEBI, you know, which, which has very tight compliances and regulations around, uh, what we can do and what we should not do. But I think the core thesis is, um, you know, if you adhere to self-compliance, that is more important than, you know, being, uh, struck by what the world tells you to. So the day I got into a formal fund structure, I made a conscious call that I would never personally invest in any firm. I would never invest money from my fund into a company which I'm already invested in, because that's just wrong. You know, it's, uh, principally wrong on my part to put myself in money, uh, by taking my fund, uh, LP's money. So I think, and these are not things which Sebi has really put into pen and paper. Uh, I know a lot of people out there who've actually done, you know, deals like this where They warehouse deals in their personal entities and then, you know, put it back into the fund. Uh, some at par, some at a premium. Uh, we just didn't want to get into that structure. What is in the fund stays in the fund. Uh, we are extremely possessive about the deals that we do. We don't partner with, uh, you know, angel groups or, you k…
AI assessment note: “managing others' money is a fiduciary responsibility... It's a job”
