If Innovation Is Foundation, Investment Is Pillar
Vishesh Rajaram believes that the cost of capital has increased and hence both users of capital, founder or startups and allocators of capital, will change the behavior on how they use or allocate capital
Starting a new company with an aim to bring innovation to dense ecosystem is a daunting task. The success and failures will remain as a major challenge. So, what about those who invest in it? They will also have another dimension of story to speak about the success of a business. The prominence of investors in every business remains unchanged. So, seeking investments from investors may seems to get tougher in the future days.
"India continues to have multiple growth pillars and hence will continue to stay as an attractive investment destination. The cost of capital has gone up with increased interest rates and this will gradually lead to some change in how capital allocators or investors allocate capital. We don't expect doomsday ahead, but founders and startups will have to factor the change in capital costs and its repercussions in how they use their capital and plan future raises," said Vishesh Rajaram, founder and managing partner, Speciale Invest in an interview with Entrepreneur India.
Rajaram believes that the cost of capital has increased and hence both users of capital, founder or startups and allocators of capital, will change the behavior on how they use or allocate capital.
"As an investor, one is expected to find the best companies and invest most in the best companies, and this remains the same. We are investing from our 2021 Vintage 2nd fund and continue to look for new opportunities in SaaS and Deep-Tech and expect to make 20 investments over the next 30 to 36 months," he added.
While asked about the company's perspective on newer investments and bridge round, Rajaram said, "It may be likely that investors and founders look to shore the capital through inside rounds, but this is very much a short-term behavior. Given the quantum of fresh or new funds raised for India in the last 12 months, we are likely to see more new investments."
Rajaram shares a positive outlook on the upcoming investments on different sectors. In his words, "We continue to stay positive and upbeat on the opportunity to build global companies out of India across enterprise software and deep-tech. Around deep-tech, we are increasingly focused on energy and climate, and are likely to make investments in green hydrogen, alternate materials and new-age batter or energy storage devices."
As studies says, it's not only about the monetary support, but also the experience and knowledge from investors' side will also help a company in its various growth stages.