Utsav Somani

Different Pre-Seed VC Fund Models Part I: Afore Capital – A Focused Pre-Seed Fund Model In the evolving landscape of Indian startups, structuring pre-seed VC funds effectively is very important for nurturing early-stage innovation. There are two main ways to approach this: a dedicated strategy like Afore Capital or a cohort and index strategy like Y Combinator. In this two-part post, let's explore both the models and their potential benefits for the Indian startup ecosystem. Afore Capital’s approach is a prime example of a focused pre-seed fund. With three funds, over $300M dedicated to pre-seed startups, and $11 billion in market cap, Afore’s strategy involves an exclusive focus on the earliest-stage companies. This model ensures that startups receive the attention, resources, and mentorship they need right from the start. By committing solely to pre-seed investments, Afore has created a playbook to identify and support pre-product, pre-revenue start-ups, providing a solid foundation for future growth. In India, while some are adopting the Y Combinator strategy, there’s a clear opportunity for a model like Afore. A focused pre-seed fund could fill the gap, offering targeted support and funding to help startups thrive from day one. Stay tuned for Part II, where we’ll delve into the Y Combinator model and how its cohort and index strategy can benefit the Indian startup ecosystem.

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"Emerging Sectors to Watch: Investor Picks for 2025-2030 🚀" As an investor with 12 active ventures & Helped 30+ Startups to fund raise round 40 M $ in last 8 yrs, I’ve witnessed how the right sectors combined with exceptional founders can unlock massive growth & impactful exits. Here's my take on the top industries poised for scaling over the next 5 years, based on trends and market potential: 🚀 Artificial Intelligence & Automation: Early-stage and Series A startups leveraging AI to optimize industries like healthcare, logistics, and customer service. The intersection of AI & operational efficiency is ripe for disruption. 🚀 Semiconductor chips: India's semiconductor future looks bright, fueled by a $10 billion PLI scheme and growing demand for electronics and EVs. Global investments & domestic manufacturing initiatives position India as a key player in the global supply chain, with optimistic investor sentiment. 🚀 MedTech & Remote Healthcare: The future of healthcare lies in remote solutions. Startups focusing on diagnostics, wearable health tech, and telemedicine (Series A to growth stage) are revolutionizing patient care while addressing accessibility gaps globally. Investors have a prime opportunity to support scalable, impactful innovations. 🚀 Green Energy & Sustainability: Renewable energy, EV infrastructure, & waste management solutions are critical as businesses & governments adopt eco-conscious policies. Seed to Series A startups focused on solving real-world problems in energy efficiency & carbon reduction are particularly promising. 🚀 Agritech & FoodTech: With the demand for sustainable & efficient farming practices increasing, early-stage startups utilizing IoT, robotics, and bioengineering for precision agriculture & alternative proteins are set to scale. These innovations directly tackle food security challenges & climate impact. 🚀 Consumer Tech & D2C Evolution: Brands delivering hyper-personalized experiences and leveraging digital-first strategies are driving consumer loyalty. Pre-seed to seed-stage startups with strong storytelling & product-market fit are paving the way for large exits through acquisitions or IPOs. 🚀 Tourism & Hospitality Tech: Post-pandemic travel resurgence is fueling demand for smart solutions in booking, experiential travel, and operational efficiency for hospitality providers. Startups at the Series A stage with innovative tech integrations stand out as game changers in this space. 💡 Why Focus Here? These sectors align innovation with necessity, offering tremendous opportunities for investors to back ventures with significant scalability and & exit potential. 👨‍💼 My Perspective: Investments aren’t just about returns; they’re about fueling transformative ideas and creating long-lasting impact. These sectors represent the future of growth and resilience. Which sector excites you the most for the next five years? Share your insights!👇 #AI #SEMICONDUCTORS #HEALTHTECH #AGRITECH

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In India's startup ecosystem, equity is crucial for early-stage growth. However, as businesses grow and evolve from ideas into structured organizations, debt becomes increasingly significant. Part II of this debt series analyzes the role of debt as a complement to equity, exploring when and how to integrate debt into your capital mix, and the specific use cases [across working capital, runway extension, acquisition financing, and Asset liability mismatch] for which startups can effectively utilize debt. Part I of the series focussed on exploring debt's function in the capital mix of early-stage startups, the factors underlying its limited adoption, its significance within capital structures, and strategies for optimizing costs to attain an ideal capital structure for startups. In case you missed it, please have a read: https://lnkd.in/gnCrbw6T

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The #startup domain is generally associated with the youth, but experienced professionals also have room to make a mark. Venture capital (VC) funds investing in early-stage companies recognise that young #founders can have strengths as well as gaps in their leadership abilities. For example, many tech #innovators have not previously run businesses or managed profit and loss statements. So, while they excel in developing scalable tech solutions, they often need assistance with #business operations. Savvy founders address this by bringing in experienced #talent to build a strong business foundation, mentor the team, and provide guidance, especially during crises. I shared my views on how startups are onboarding veterans at the CXO level with The Economic Times. Read the article here: https://lnkd.in/gDZEtyib

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✨ Breaking: GoalVest Advisory Announces New Fund.- GoalVest Advisory A new Venture Growth Fund focusing on mid-to-late stage VC-backed companies in sectors like AI and fintech. https://lnkd.in/dxTCTCTB Please share to let other #Founders know For the ❤️ of Startups #Fusion42 #Startups#Venturecapital

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The market's state from yesterday has had a rather unsettling impact on everyone. Like any good investor, please stop looking at short-term gains and losses. The storm is bound to calm down and the market will stabilize too once the budget is announced Hope this helps! #loksabhaelections #equityinvesting #stocks

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**Exploding Myths: Not All Money Is Good Money for Startups** In the heady rush to secure funding, it's a narrative seldom challenged—that all investments are a boon. However, the right partnership with investors goes far beyond mere capital. In our recent analysis, the stark contrasts between strategic fit and merely financial injections come to light. A venture capital investor isn't just a bank but should be a partner that aligns with your startup's vision, growth trajectory, and ethos. They bring not just money but invaluable experience, networks, and guidance. As founders navigate these waters, remember that choosing an investor is as critical as they choose you. Compatibility in visions can mean the difference between scaling effectively or misaligned priorities leading to friction down the line. #StartupFunding #InvestorFit #StrategicInvesting #VentureCapitalInsights #venturebacked

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An interesting trend in the Indian family-office ecosystem: > Old-money family offices (entrepreneurs who built traditional, successful businesses) allocate ONLY 5-10% to private markets and startups and a significant portion usually between 40-70% in public markets and a decent amount to fixed-income/debt instruments whereas > New-money family offices (FOs of entrepreneurs who have made their money building startups) invest the majority of their capital in private markets (sometimes as high as 70-90%) and have a much smaller public markets and fixed income portfolio relatively. Many startup founders say that they do not understand the stock markets and PREFER to do private markets as they think it's within their 'circle of competence'. Will be super interesting to see how this trend plays out over the long-term.

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I came across an interesting post by Balaji BK talking about the timidness of Indian VC. Broad points included the challenges non-obvious founders to raise capital without networks, too conservative cheques being written, a big need for Founders Fund/YC equivalents to back early stage companies. I'd love to hear comments from #founders and #investors around this. Here's my two cents below: 1. The VC ecosystem in India is arguably barely a decade+ old. When I started investing in 2012, there were a thimbleful of funds, two major angel networks and a handful of angels crazy enough to invest. 2. We're finally having our first cycle of Founders giving back, with Mars Shot Ventures, Culture Cap, Shastra VC and so many more (ping your names in the comments!). These funds are highly risk taking, fairly friendly and quick to move. 3. Me-too-ing. For every potentially innovative idea sent to me on a weekly basis, I receive 100x the 'EV logistics company' or 'Samosa Kart at Railway'. 4. Banker & Consultant dominated. I fully agree with this point, there's a distinct shift towards former operators in VC roles (I'm an example) and feel this needs to shift even further at the early stages, with more financial expertise coming in towards later stage funds (still feel operators from specific industries would help). 5. Lack of pre-seed capital. Sadly, true. Given the nascency of the industry, it's EXTREMELY difficult to raise a fund. Hence there's definitely an element of careful selection. At the end of the day, raising comes down to this. If you have the numbers, discuss the numbers. Everything else (background etc) is secondary. If you have epic numbers, you'll get funded (good unit economics + growth rate) If you don't have the numbers, showcase proof-of-concepts, letters of intent, pilot tests in progress. If you don't have either of the above, then yes, as an investor, I will look at your experience and background, because, absent the two points above, how do I gauge your 'talent'? #venturecapital #funding #india

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All-in-one VC Finance Guide For Founders... While raising funds, most founders neglect to learn about VC financing terms and their real meanings. Many of you might ask, 'What's the use of learning all these terms?' Understanding these terms and concepts is crucial - they'll not only help you present your pitch more effectively but also give you an edge during negotiations. If you're unfamiliar with VC financing concepts, I highly recommend following this guide by Dave Lishego. Check out the attached pdf for more info 👇 If you find this helpful - please like, comment & share so that it reaches founders. 💫 For more insights, check out my free newsletter and join 62000+ founders & investors: https://lnkd.in/dAt35dna . #startups #vc #venturecapital #founders #funding #fund #angelinvestors #investors #early #guide #finance #jobs #internships

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#InvestmentUpdate: Delighted to share our latest investment in The Pant Project! 💰💰 We joined hands with Sorin Investments, MGA Ventures, Huddle Ventures and Indian Silicon Valley Capital to fund the growth of what a beautiful company Dhruv and Udit have built. .. And what makes this better? We were joined by angels like Arjun, Avni, Nikhil and Vijay Taparia. All so that we can cheer and support the two founders in building The Pant Project into one of the most loved clothing brands in India. .. But, what makes this ever better? Dexter Capital Advisors, the principal company of our group was the exclusive financial advisor for the round. And being an investment banking partner, and also joining in as a VC investor shows, how much conviction we hold in the company’s potential, and the founder execution knack. .. Thus, cheering for the team, with all hearts and wishes. And a special mention for our great team which worked BTS to make this deal happen - Ankit, Aryan, Yash, Sorabh, Laksh, Sakshi, Devansh. And to Varun and Jay .. PS: At Dexter Ventures, we are always on the look for good founders. Reach out at deals@dexter[dot]ventures keeping me in CC anuradha@dexter[dot]ventures :) #Startups #IndianStartups #VC #Entrepreneurs #Entrepreneurship #InvestmentBanking | Devendra, Multibhashi, Jayant

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If you have been in VC and PE, you have perhaps come across the J-curve. This curve shows the financial performance of a venture capital fund over time. To put it simply, a venture fund has a start time and an end time. At the beginning, the fund spends money on investments. As you know, startups and failures are like 5 & 6, so those early years often result in significant losses for VCs. That's why the J-curve starts in the negative region of the graph. However, as the saying goes, "weeping may endure for a night, but joy comes in the morning." For VCs, joy comes when they start exiting some of their investments and making money. Gradually, the curve rises from the negative region into the positive, making everyone smile. Let's consider an example: Miraculous Venture, a $50 million fund with a 10-year lifespan. In the first 3-5 years, the fund will primarily be investing and writing off some failed investments, so the curve will be negative. But if they back the next OpenAI, and by the 7th year, they achieve a 1000x return on their capital, this will significantly shift the returns from negative to positive. It's that simple.

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Indian VCs offer comprehensive resources for fundraising and hiring, including investor lists, templates, job boards, and networking events. Check the link in the comment #venturecapital #fundraising #startup

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If you are a first-time founder doing fundraising, I recommend not getting into a call with investors all by yourself. Rather have your colleague/co-founder with you, so that they can take notes of questions asked, answers provided and how satisfied investors were with those answers. Soon you will notice that every investors wants to know that same key points in the intro call. It is only a matter of how effectively can you communicate those points.

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Whilst a VC fund’s raison-d’etre is to make returns (aka money) for its investors and we typically focus on that - on a more philosophical note, I wanted to share this lovely clip which made me pause and think. The video questions the common belief that money changes people with an interesting premise - suggesting it amplifies their existing traits. At SenseAI Ventures partnering with entrepreneurs whose values align with ours is a key principle that we keep in view in every investment - as financial success will amplify those values and qualities driving impacts that are more than just the bottom line. #AI #Investments #VC #Money #Entrepreneurs #SenseAIVentures

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Profitability vs. Growth: Finding the Balance As a VC, capital efficiency is crucial in today's market, but chasing profitability too early can risk stalling growth—and we are still in this for strong returns! Smart move: Scale-ups that keep burn rates low while strategically expanding raise just enough to grow quickly, keeping both the top line and investors happy. Misstep: Pulling back too much for early profitability kills momentum. Remember, VCs invest for scalability, not just steady returns. Bottom line: Raise what you need, grow smartly, and find the right balance between profitability and growth. #india #startups #investing #fundraising #growth #success

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