Vishesh Rajaram, founder of Speciale Invest, defines capital efficiency as exit value divided by capital consumed when contrasting B2B tech with consumer investing.
“And one of the draws towards doing software and industrial hardware is that we generally think that the capital efficiency is one and a half to two times more than the consumer startups.”
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More from Vishesh Rajaram
Opinion
Rajaram: Agnikul is the Indian equivalent of SpaceX
“Of course, within the fund, one of our other favorite companies is is Agnikul, which is in, you know, in my mind, sort of the SpaceX equivalent for the Indian markets and the current situation.”
Vishesh RajaramAug 24, 2020▶ 14:44Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
Opinion
Rajaram: Optical Communication Will Disrupt Space Telecom Like Fiber Optics Did Internet
“Today, communication is typically done using RF, and that's limiting in both terms of cost and bandwidth, and we think optics can do what fiber optics did for the internet for, let's say, telecommunication.”
Vishesh RajaramAug 24, 2020▶ 14:01Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
AssertionNot checkable as stated
Rajaram: Speciale Invest achieved a triple-digit IRR on Pocket52 exit
“I haven't covered the company that we exited recently. It was a good exit for us. Triple digit IRR. This was a company in the gaming side.”
Vishesh RajaramAug 24, 2020▶ 16:20Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
Insight
Rajaram: Deep Tech Requires Longer Holding Periods for Non-Linear Upside
“We know we're backing deep companies, and sometimes the waiting period has to be longer if you want to create you know, non-linear upside, and I think we were aware of that, and we're playing for it.”
Vishesh RajaramAug 24, 2020▶ 18:45Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
Insight
Rajaram: Meaningful tech value creation typically requires 6 to 10 years
“The important part to keep in mind is that real value comes typically when you scale companies, you know, six, seven, eight, nine, 10 years. I think three, four years ago, it was an unwritten rule that strong value creation takes about 10 years. Of course, now…”
Vishesh RajaramAug 24, 2020▶ 20:30Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
Opinion
Rajaram: Indian startup ecosystem no longer attaches stigma to failure
“I think what's fundamentally changed is the appetite for risk. There is no stigma attached to failure. People don't worry about failing. People don't worry about getting a job if this doesn't go anywhere.”
Vishesh RajaramAug 24, 2020▶ 23:31Vishesh Rajaram, Speciale Invest on investing in seed-stage deep tech startups
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