April 1, 2016 | Bhive Workspace S4, HSR Layout, Bangalore.
The workshop was conducted by:
Navin Honagudi – Investment Director at Kae Capital – Early Stage investor in Mobile Internet, Online marketplace and SaaS opportunities.
Devansh Sanghavi – Investment Analyst at Kae Capital.
The workshop was mainly focused on the following topics:
- Mechanics of early-stage investment.
- Couple of case studies of successful SaaS companies who have raised rounds
- How did they raise money?
- How much of the company do the founders own?
- Do the founders still control the company?
- What mistakes should startup avoid while raising funds at an early stage ?
The session started with the portfolio startups introducing themselves and their business following which there was a 60 minutes talk , ending with Q and A.
- Investors in the case of technology firms, looks at both B2B and B2C, equally.
- Kae Capital average investment range is from 200k to 500k.
- Four things which Kae Capital evaluates:
- Past experience in relevant field is preferred.
- Clear articulation of pain point needs to be done.
- Scope and large TAM (needs to be well defined TAM).
- Product market fit is necessary.
- Some companies initially raise funds and further get acquired, is also a good way which you can look for, instead of just focusing on funding part.
- Three metrics for TAM (Total Addressable Market):
- 15-20% growth M-o-M.
- Churn: 5-7% in case of enterprise or 15-20% in case of SMB, annually.
- Unit economics – CAC must be recovered in less than 12 months.
- Investors love SMB space.
Overall the session was “bang on” according to our startup founders who keenly look forward to the next session.