India Quotient co-founder Madhukar Sinha differentiates seed-stage venture investing from traditional large-scale institutional asset management.
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…”
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 …”
Prediction Open · 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.”
Disclosure
India Quotient launched with a strict rule to never syndicate deals
“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 …”
Assertion Not 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, …”
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…”