I really look for solid business models, says actor Kunal Kapoor

Before Ketto happened, actor Kunal Kapoor felt that the social space in India was very serious and had a lot of gravity attached to it, whereas in the west people were having a lot of fun while doing charity.

Entrepreneur India

Kunal Kapoor, Bollywood Actor

Ketto  Bollywood Actor Kunal Kapoor, Varun Sheth and Zaheer Adenwala.

"I don’t really invest in companies depending on their valuations. I really  look for solid business models. I think it’s really important to invest in companies  that have a solid revenue stream as opposed to valuations. Those are things you can’t predict. But when you meet an entrepreneur, I think you get a sense of what he is attempting to do and the kind of business he is attempting to do. So I think it is better to invest in a solid business model," said Kapoor.

Advice for celebrities investing in startups

First of all, I don’t think you should treat it like a lottery. I think that’s really important because I think at some levels people treat it like a lottery. We will invest in 10 companies and profit will become 10X, that’s not necessarily doesn’t happen, you are lucky if it does. Like I am saying, don’t treat it like a lottery, invest in solid business models.

Secondly, for me what is really important is the person that is leading the operations. You could have a great idea, but the person that’s leading it might not be that dynamic, may not be like he has the  potential to build a big business. So I think it’s very important to meet the entrepreneur and sort of understand what he is all about and what he is trying to do.

The third one is also I think is to get advice from a lot of people before investing in a company. Usually what I do is sort of bounce it off to few people who have been in the industry for a long time. Something I like. And I get different perspectives from a lot of people before I go ahead and  invest in a company.