Nishit Garg, Partner at RTP Global, discusses whether venture capitalists will adapt their return expectations to support smaller, profitable IPO outcomes.
“If there is a, you know, there is a series of outcomes of, you know, 305, four hundred million dollars of businesses which have been capital efficient, being profitable from early days and good IPOs. I think the VCs will also start thinking very differently for those.”
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More from Nishit Garg
AssertionContradicted
Garg: Only a handful of Indian tech companies exceed $30M–$40M ARR
“A lot of Indian companies are, have started to reach A million to million type of ARRs, but have not a lot of companies beyond a few that you can count on your hands are beyond the 30, forty million ARR today.”
Nishit GargJul 20, 2024▶ 26:06Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
PredictionNot checkable as stated
Garg: India will produce more $500M–$1B outcomes than Flipkart-scale mega-exits
“There may not be Flipkart type Many, many, many outcomes in the ecosystem, but there can be a lot more, five hundred million to a billion type outcomes in the country.”
Nishit GargJul 20, 2024▶ 33:17Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
Insight
Garg: Seed-stage investing does not require months of due diligence
“You don't require three, four months of work to invest in a seed stage company.”
Nishit GargJul 20, 2024▶ 14:06Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
Insight
Garg: VCs cannot become great investors by playing popularity games
“I think you definitely, one of the biggest mistakes some VCs do is always be really nice to the founders and not tell them what the market realities are or what they're seeing out there. You know, you can't be, you know, be a great VC by being, by playing a po…”
Nishit GargJul 20, 2024▶ 45:32Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
Insight
Garg: VC investing has no checklist and relies ultimately on gut calls
“At the end of the day, there is no checklist for a VC. When you invest, when you don't invest, it's a gut call. So yeah, if the gut says no, don't invest.”
Nishit GargJul 20, 2024▶ 49:01Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
Insight
Garg: VCs should not invest if unwilling to put in personal wealth
“And I think one big checklist, or I would say a question that whenever I invest, I talk to myself, will I be okay to, you know, invest a significant personal wealth into this company? If your answer is no, just don't invest.”
Nishit GargJul 20, 2024▶ 49:11Flipkart’s Success Secrets, VC Power Law, And IPO Market : RTP Global Partner, Nishit Garg
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