Why Startups Need Advisors in their Journey?

Pankaj Karna, Founder & Managing Director, Maple Capital Advisors Pvt. Ltd
Monday, December 28, 2015
Pankaj Karna, Founder & Managing Director, Maple Capital Advisors Pvt. Ltd
The startup world especially in India has changed over the last few years. There has been excitement, the traditional parameters have been disrupted, its all about an idea and capital that has followed direct to entrepreneurs and most funding takes place on the back of idea traction and often open ended to follow on rounds, assuming traction continues to be demonstrated, followed by the funding.

In this environment, startups have focused on their business idea proving its market traction/potential and reaching direct to investor pools with a hope of closing it. Investors have nurtured this approach to some extent.

The world may be changing again as we speak and we believe businesses and startup ideas will be asked to provide bankable plans having visibility to profitability, the models need to get robust and so will the idea. The realities of a sustainable and bankable business would have to be proven as execution abilities to back the scale up of the startup.

Given the emerging reality, even if business traction and idea is good, but converting it to a profitable and scalable model would be key and therefore, requires experience and expertise to fill in where gaps exist. The experience could be from a regulatory standpoint, to insights on unit economics, to business and policy relationships as well as strategic relationships that enable success of the idea and executes scaling up successfully.

Fund raising in our view will also change, as business model will have to get robust, so will the relationships with changing mix of investors that are emerging here.

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