Investors in India

Pros:

1. Competition is a lot less here in India. There are far fewer product companies here than U.S. Also there’s too much money in India chasing too few deals.

2. There are many funds raised just to invest in Indian product companies. They are willing to provide the same amount of money, as their U.S. counterparts from as low as a few hundred thousand dollars to many millions.

3. Traction requirements are a lot less. For a sapling round many companies are getting funded with far fewer customers or users than in the U.S.

Cons:

1. Indian investors move very slowly. Here a company with a 2 month old signed term sheet keeps waiting for the money.

2. Their terms are lot more burdensome and they require a higher percentage of the company during the seed round.

3. They rarely add any value after putting money into the company at the seed round, usually only asking for “3 year financial projections” when the product is in beta.