Mechanics of early-stage investment by Kae Capital

April 1, 2016 | Bhive Workspace S4, HSR Layout, Bangalore.

The workshop was conducted by:

Navin Honagudi

Navin Honagudi – Investment Director at Kae Capital – Early Stage investor in Mobile Internet, Online marketplace and SaaS opportunities.

Devansh Sanghavi

Devansh Sanghavi – Investment Analyst at Kae Capital.

The workshop was mainly focused on the following topics:

  1. Mechanics of early-stage investment.
  2. Couple of case studies of successful SaaS companies who have raised rounds
  3. How did they raise money?
  4. How much of the company do the founders own?
  5. Do the founders still control the company?
  6. 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.

Screenshot from 2016-04-27 12:48:56

Key Takeaways:

  1. Investors in the case of technology firms, looks at both B2B and B2C, equally.
  2. Kae Capital average investment range is from 200k to 500k.
  3. Four things which Kae Capital evaluates:
    1. Past experience in relevant field is preferred.
    2. Clear articulation of pain point needs to be done.
    3. Scope and large TAM (needs to be well defined TAM).
    4. Product market fit is necessary.
  4. 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.
  5. Three metrics for TAM (Total Addressable Market):
    1. 15-20% growth M-o-M.
    2. Churn: 5-7% in case of enterprise or 15-20% in case of SMB, annually.
    3. Unit economics – CAC must be recovered in less than 12 months.
  6. Investors love SMB space.

Overall the session was “bang on” according to our startup founders who keenly look forward to the next session.


One thought on “Mechanics of early-stage investment by Kae Capital

  1. Pingback: April 2016 edition

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s