Deepak Gupta of WEH Ventures outlines the growth of low-cost passive investing adoption in India as part of his thesis for investing in smallcase.
Insight
Deepak Gupta: High-volume seed dealmaking does not yield good companies
“We also do not think that just doing large numbers of deals is the answer to get to good companies.”
Prediction Held up
Gupta: VC Deal Volume Won't Drop by Half in 9 Months
“I'm not sure the, you know, in nine months time, we will be doing only half the deals that we did before. We'll be doing probably better than that.”
Insight
Gupta: Investors Should Keep Deploying in Downturns Rather Than Withdrawing
“A downturn is not necessarily a crisis. So, if you can hold your conviction and invest, you should do that. It may be harder to invest at the same rate, and it's probably foolish to do that, but I don't think a complete withdrawal is something that I would pur…”
Insight
Gupta: Even Top Founders Flounder in Multi-Year Market Downturns
“If you see the Nasdaq downturn, It was actually quite prolonged. It was for more than two years. And in those kind of downturns, even the best of founders may flounder simply because, you know, it's very hard to sustain a business over two, three years of a do…”
Insight
Gupta: Startups With Crisis Tailwinds Should Play Offense, Not Just Survive
“So if you are in the tailwind sector, many of our companies are, especially those who have content, or even small case and you have the capital, then you should be, what I call, semi-aggressive. Because if you see the general advice, it is survive. I think sur…”
Insight
Gupta: Startups on weaker footing during prolonged crises should pursue M&A
“I would actively urge companies who are slightly in a weaker footing to think through potential M&A possibilities. Because, ah, you know, if raising capital is going to be difficult, and they will lose some competitive advantage during the, if this crisis is s…”