The process starts when we are approached by a person or a team that has validated their idea, product or service and is now looking for growth stage capital.
We generally spend the first couple of weeks interacting with and validating the founding team, the product/service, checking references through family, ex-employers – and trying out the product/service ourselves.
After that we agree the initial terms – and this basically tries to analyze 3 things.
- How coachable is the entrepreneur – is he/she open to feedback and mentoring, and co-existing as a portfolio company – to ensure our knowledge and the founder’s passion work in harmony
- What funds are required for the seed round
- What equity split & board control equation is mutually acceptable
Once there is an agreement , it takes about 4 weeks to get the funds into the founder’s account, with bulk of this time spent incorporating the Firm and opening its bank account!