In the expansive realm of angel investments, Chandrashekar Kupperi, affectionately known as Shekar, emerges as a guiding force. Armed with rich experience from his roles in investment banking and as an angel investor, Shekar imparts invaluable insights into the intricate world of startups and investment strategies.
Angel Investment Mantras
Patience as a Virtue: Shekar views angel investment as a marathon, emphasizing the need for patience. Returns take time to materialize, with a typical waiting period of 3 to 5 years.
Prudent Financial Planning: Investing only when one has spare funds is Shekar’s mantra. He compares angel investment to an expensive tuition fee, stressing that if a startup fails, there are no returns. The greater the risk, the higher the potential returns.
Diversification over trend-chasing: Shekar advises against following trends blindly. Instead, he advocates diversification, cautioning against putting all eggs in the same basket.
Valuation Strategy: Emphasizing the importance of a flexible valuation strategy, Shekar evaluates a startup’s capability to achieve higher valuations over time. His background in investment banking, having invested in 50 startups and being part of six funds, bolsters his confidence in this approach.
Philosophy of Investment: The SCREAM Framework
S – Scalability: Shekar scrutinizes a startup’s understanding of the market size, employing concepts like TAM, SAM, and SOM. Scalability, as per startup guru Steve Blank, is crucial for sustained growth.
C – Capability of the Team: The founding team’s cohesion, mutual respect, domain knowledge, and a sense of urgency are pivotal factors in Shekar’s evaluation process.
R – Resilience: Shekar values a startup’s ability to weather highs and lows, emphasizing the importance of understanding and acknowledging competition within the market.
E – Energy: Enthusiasm and energy are critical indicators for Shekar. Startups displaying high levels of enthusiasm tend to overcome failures more effectively.
A – Anticipating Success: Shekar assesses the founding team’s belief in their success, examining elements like the CAP Table, the GTM Strategy, realistic goals, and step-by-step milestones.
M – Metrics: As a chartered accountant, Shekar places significant importance on numbers, examining momentum, milestones, traction, recurring revenue, and various financial metrics. Corporate discipline and compliance are equally crucial.
Proud Investments
Among his 50 investments, Shekar takes pride in each, having invested thoughtfully. Notable successes include:
- Agnikool: A Chennai-based startup that raised $27 million, pioneering 3D-printed rocket technology.
- GOQii: A non-invasive diabetic monitoring startup expanding globally, emphasizing customer-centricity.
- Resham Mandi is an agri-tech startup with substantial growth and significant contributions to decreasing the current account deficit of the country.
- Blue Smart is a rapidly growing EV startup with a focus on service excellence.
- Rare Planet is an unconventional startup dealing in terracotta and copper, showcasing substantial growth.
Notable Exits and Alternate Clauses
Shekar advocates for diversification, acknowledging the risks and rewards associated with early-stage investments. Notable exits include Samosa Party, Car 91, and more. He invests through Peaceful Progress, highlighting the importance of disruptive and socially impactful ventures.
Peaceful Progress: Democratizing Angel Investments
The mission of Peaceful Progress is to democratize angel investments. Investors can sign a contribution agreement over a specific period, giving them control over their money. Focus areas include technology, consumer, and mobility startups.
Connection with Mahendra Singh Dhoni
Shekar’s collaboration with legendary cricketer Mahendra Singh Dhoni extends beyond the conventional boundaries of investor and investee, showcasing a convergence of leadership, vision, and shared values.
Genesis of Collaboration: The roots of this collaboration trace back to the founder of Run Adam Sports Private Limited, seeking insights on securing further investments. Upon discovering that MS Dhoni was already an investor, Shekar’s UK client expressed a desire to bring the cricketing icon on board. This led to Shekar reaching out to Dhoni, ultimately forging a collaboration.
Agreement Signing: During the signing of the agreement, Shekar had the opportunity to spend an hour with Dhoni, marked by Dhoni’s humility and meticulous attention. Dhoni’s enthusiasm painted a vivid picture of a great leader, a cool captain, and an amazing human being.
A Dual Collaboration: The collaboration with MS Dhoni extends beyond Peaceful Progress to ANOVA Corporate Services, where both entities benefit from Dhoni’s insights and strategic inputs as an investor. This dual collaboration emphasizes a shared commitment to progress, not just in financial terms but also in positively impacting lives.
Prelude to the Next Episodes
As we navigate through Shekar’s enthralling journey, the upcoming episodes promise to unravel more facets of his experiences and insights. In these episodes, Shekar addresses pivotal questions that resonate with aspiring angel investors and entrepreneurs alike.
Advice to Aspiring Angel Investors and Entrepreneurs:
- For those embarking on angel investing, Shekar provides advice on patience, financial planning, and the importance of diversification.
- Entrepreneurs aspiring to attract angel investors gain insights into aligning with the SCREAM framework and maintaining a strong founder-market fit.
Balance in Life: Shekar shares his perspective on maintaining a harmonious balance between a demanding professional life and personal well-being, offering practical insights for professionals navigating the startup ecosystem.
In conclusion, Shekar’s journey reflects not only a successful investor but also a visionary guiding the startup ecosystem toward greatness. His wisdom, encapsulated in the SCREAM framework, offers a blueprint for aspiring entrepreneurs and investors navigating the complex realm of startups and angel investments.
