Madhukar Sinha, co-founder of Indian seed fund India Quotient, explains the core deal mechanics he and partner Anand Lunia established when founding the firm.
“Our strategy will be deciding the deal. So we will not do a syndicate kind of strategy. So we will we will invest and if the company raise more money, that's okay, but we will, our investment will not be subject to somebody else investment, right? So that was one thing which we wanted to be very clear about when we set up India question.”
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More from Madhukar Sinha
Opinion
Sinha says SaaS businesses are merely support tools, not market changers
“So, so therefore that is also one of the reasons I don't do a lot of software, right? So I don't do SaaS. I don't do enterprise SaaS or I, Don't do B to B SaaS. It's not like I don't like those businesses or they are not, they can't make money. They can make m…”
Madhukar SinhaJun 15, 2021▶ 40:23Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
Insight
Outlier seed bets like ShareChat cannot happen via committee consensus
“You can't invest in a company like share chat by getting into a consensus, right? So it's impossible, right? Because there was hardly anything there, right? To say that you will basically create a social media company when you have a Facebook, when you have a …”
Madhukar SinhaJun 15, 2021▶ 37:09Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
Insight
Conventional fund management applies only to $100M+ mega-funds
“I think fund manager thing only works when you are like managing hundreds of millions of dollars. You have that kind of pedigree where your job is largely doing money management, right? So we are not money management, right? Our job is not money management. Ou…”
Madhukar SinhaJun 15, 2021▶ 15:54Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
PredictionOpen · timeframe Jun 2024
Sinha predicts ShareChat will grow at least 3x to 5x further
“So, and if share chat goes at least three to five times from here, Which I believe it will, because most of the investors who have invested in this round, they believe that.”
Madhukar SinhaJun 15, 2021▶ 55:54Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
AssertionNot checkable as stated
India Quotient founders became tech investors despite zero coding experience
“We are full-fledged tech investors, as you can say, with me having zero experience of tech, by the way, I don't code. I don't understand code also, right? So of course I am an engineer, so I understand the logic of technology, but nothing hands-on. Similarly, …”
Madhukar SinhaJun 15, 2021▶ 14:28Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
Disclosure
India Quotient used to give upfront checks alongside term sheets
“When we started investing in we had a rule that we would give a term sheet and along with the term sheet, we would Give a check of 10 lakhs or 20 lakhs to get started, right? So we will not say that, okay, now we are given a term sheet and now after two months…”
Madhukar SinhaJun 15, 2021▶ 17:43Investing in outliers with Madhukar Sinha, Founder, India Quotient | 100x Entrepreneur Podcast
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