[Exclusive Interview] This Investment Company Has Enabled Rs 25,000 Crore Funding For 150+ Startups

Recently, we interacted with Mr. Subhashis Kar, Founder and CEO of Techbooze Consultancy Services– a platform that facilitates investment rounds for both well-settled and newly emerging companies across the globe.

Here are the interview highlights:

1. How do you evaluate and select prospective startups to invest in and what criteria do you consider to be indicative of their potential success and growth in the market?

As investors, we need to approach the evaluation and selection of prospective startups with a strategic mindset. Here are some criteria that we consider indicative of a startup’s potential success and growth in the market:

• Business Model and Unique Value Proposition: First and foremost, we evaluate the startup’s business model and unique value proposition. Startups that have a strong value proposition and the ability to solve real problems in the market are more likely to succeed.

• Market Size and Potential: We also consider the market size and potential for the startup’s product or service. A small market with limited potential can hinder the company’s ability to scale and become profitable.

• Traction and Milestones: Early traction indicates that the startup has a product-market fit and is attracting customers, which could be an indication of future growth. It is also important to review the startup’s milestones and the timeliness with which they have been achieved. This demonstrates their ability to execute plans and reach their goals.

• Scalability and Potential for Exit: Scalability is another important factor we consider. A scalable startup has the potential to generate higher returns in the long run. Additionally, we analyse the potential for an exit, whether through acquisition or an initial public offering. A startup with a strong product, market position, and potential for acquisition is more appealing to us compared to others.

2. What role does mentorship and guidance play in helping startups thrive, and how do you provide non-financial resources and support to ensure their long-term success?

One of the main benefits of mentorship for startups is the wisdom and guidance that comes along. Finance Mentors can also act as a source of motivation and encouragement for founders and their teams. The startup journey can be isolating and stressful, and having a mentor who understands the challenges and can offer support and encouragement can make a significant difference in the mental and emotional well-being of entrepreneurs. Investors share their expertise and knowledge in their respective industries. They also offer valuable connections and networks. They can open doors to potential partnerships, distribution channels, and key decision-makers in the industry. This can provide startups with a significant advantage in the market and help them expand their reach and grow their customer base. They can also guide on strategy, operations, and marketing, helping startups refine their plans and make more informed decisions. This support from experienced investors can expedite the growth process and help startups avoid costly mistakes.

3. How do you evaluate and select prospective startups to invest in, and what criteria do you consider indicative of their potential success and growth in the market?

As an investor, it is important to carefully evaluate and select prospective startups to ensure the best chances of success and growth in the market. Here are some key criteria that we follow to evaluate and select a potential startup:

• Strong Founding Team: A strong and experienced team can provide the necessary skills, expertise, and leadership to navigate the challenges of starting and growing a business. 
• Innovative Offering: We look for uniqueness, scalability, and market demand for the startup’s product or service. Solving a problem or fulfilling a need in the market greatly increases the chances of success.
• Market Potential: Researching the target market, competition, and growth opportunities is essential. We seek a clear understanding of the market, a viable business model, and a plan for sustainable growth.
• Financials and Revenue Model: Evaluating financials and the revenue model is crucial to determining long-term profitability. We look for a sustainable and scalable revenue model, as well as an efficient use of resources.

4. How do you manage and minimise potential risks related to concentration in specific asset classes or industries?

Here are some effective ways that we stick to minimise and manage potential risks related to concentration in specific asset classes or industries

• Diversification is the key to minimising the risks associated with concentrating our investments in a single asset class or industry. 
• Before investing in a particular asset class or industry, it is crucial for us to conduct thorough research. 
• It is essential to regularly monitor our portfolio to ensure that there is a balance between different asset classes and industries.
• We keep a close eye on the latest market trends to identify potential risks. 
• We have a risk management plan for every client to manage potential risks related to asset concentration. 

5. How do you navigate and mitigate the inherent risks associated with investing in early-stage businesses?

To effectively navigate the risks of investing in early-stage businesses, it is crucial to conduct extensive research and evaluate the company thoroughly. This entails analysing the company’s business model, management team, financials, and market potential. Another important factor to consider is diversification. By allocating investments across various industries, sectors, and stages of businesses, the aim is to reduce the impact of a single company’s failure on overall returns. Continually monitoring the progress of invested companies and regularly reviewing their financial reports, attending shareholder meetings, and maintaining communication with the management team helps to stay informed about potential risks and make the necessary adjustments to the investment strategy.

6. In today’s rapidly changing financial landscape, how do you adapt to emerging trends and technologies to ensure your competitive edge and effectively meet the evolving needs of your clients?

• One of the key ways to ensure a competitive edge is to stay informed and continuously educate yourself on the latest trends and technology in the financial industry. 
• The financial landscape is constantly shifting and it’s essential to be flexible and open to new ideas and approaches. 
• It is important to take advantage of new tools and technologies to improve services and streamline all operations. For example, the rise of Fintech has made it easier than ever to manage and track finances, as well as provide personalised services to clients. 
• We constantly assess and evaluate business strategies and services in light of emerging trends and technologies. 
• Lastly, building a strong network and collaborating with other professionals in the financial industry helps us adapt to emerging trends and technologies as well as gain new perspectives on industry developments.