“Investing, you know, personal capital in the public market, which now looks great, but actually it's just a function of low interest rates in America, you know, pumping money into India.”
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More from Arun Venkatachalam
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Venkatachalam: Unsecured consumer lending is actually a collections business
“The problem with that is, you know, it's not really a lending business. It's actually a collections business.”
Venkatachalam: Building a $1B NBFC book results in 90% dilution
“So what ends up happening, you know, so that is people want to invest in NBFCs, but you don't realize that you'll be like 90% diluted by the time you build a billion dollar book, because you will just be pretty much operating at two to three X leverage.”
Venkatachalam: Tech lending startups hit a cliff and get valued like NBFCs
“If you want to come and invest in a lending business as a technology business, your valuation is just some random technology valuation, which is fine, right? But if you build that business consistently, the penultimate investor before an IPO will value it like…”
Venkatachalam: New angel investors mostly see deals top angels passed on
“If you are new and you're entering this market, it's, you know, it's almost likely that you will get a deck that probably a lot of angels who have the pick of the litter kind of passed out on, you know, passed on.”
Venkatachalam: Most Indian VCs are generalists unlike US and Israeli investors
“Most VC guys in India, I'd say, you know, there are a lot of generalists in this space. I don't think there are too many specialists, as you may see in other parts of the world, especially, you know, in Israel or the US.”
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