Knowing the Start-up Ecosystem
Amit Khanna is a partner at 7startup – a London-based venture builder and investment accelerator. A seasoned operator-cum-investor with a wealth of experience in enterprise and deep-tech start-up innovation and transformation, acquired at industry giants like Northrop Grumman, Global Family Offices, and Early-Stage Ventures.Recent Start-up Landscape Shaped
The current economic climate presents a unique set of challenges for start-ups in their quest for funding, be it from venture capital or through debt financing. Lower valuations and protracted due diligence processes have become the norm. However, we view this as a mid-term phenomenon. It offers a golden opportunity for investors to rally behind start-ups designed to withstand market turbulence. I believe a founding team's adaptability and capacity to expand within the current environment are indicators of their business model's competitiveness.
Investment Thesis
Our investment philosophy at 7startup is rooted in identifying early-stage hidden gems in the UK, EU, and USA. We specialize in discovering and nurturing ventures with untapped potential, particularly deep tech and B2B SaaS, where AI and automation are catalysts for innovation. Data volume has skyrocketed due to advances in technology and the popularity of the cloud. As a result, many new kinds of data infrastructure software platforms now exist that focus exclusively on AI or ML algorithms when dealing with large amounts of information. Looking ahead into 2023 and beyond, we are narrowing our focus to industries we believe are poised for profound and enduring transformation.
Unearthing Promising Deep-Tech Start-ups
I think unearthing promising deep-tech start-ups is an art that involves a multifaceted approach. Beyond merely addressing critical problems, we delve into factors such as market size, disruptive potential, and the ease with which potential customers can adopt new technologies. We seek start-ups that don't just offer marginal improvements but those that leapfrog existing solutions with robust defensibility.
At the heart of every successful start-up lies a visionary founder, their unwavering mission, and the core team steering the ship. It's often a small, passionate group of individuals that makes the critical decisions shaping the start-up's destiny. We appreciate the significance of founder mindsets and rally behind those who embrace responsibility, ethics, and longevity as our fundamental engagement principles. These founder traits not only create competitive advantages but also safeguard against ethical pitfalls.
Managing Investments
For the past decade, the tech industry's rallying cry has been ‘growth at all costs.’ This mindset, driven by the seemingly limitless computing power described by Moore's law, led to the creation of new technologies and the establishment of winner-takes-all markets. However, amidst this race for rapid growth, the importance of longevity and resilience often faded into the background. It's imperative to reassess these priorities.
Founding a business with an expiration date is not the intent of any entrepreneur, yet very few early-stage companies contemplate the principles required for long-term survival. As we move forward, at 7strartup, we believe it's essential that we reevaluate our approach, giving equal weight to building businesses that endure as we do to achieve rapid growth.
In my worldview, I am an optimist. I firmly believe that AI holds the potential to tackle some of humanity's most pressing challenges, propelling us to new heights. However, in the realm of deep tech, first-time founders often grapple with the challenge of navigating uncharted waters. Deep tech thrives when founders are given the freedom to be unconventional, creative, and disruptive. The individuals we choose to invest in are technologists with a deep-seated passion and vision, coupled with robust business acumen. We invest in those who harbor dreams of solving real-world problems.
The art of storytelling, too, plays a pivotal role in the investment journey. Money flows in response to compelling narratives. We're entering an era where the ability to communicate a vision effectively can be as valuable as the technology itself. It's through these narratives that investors connect with the mission and potential of a start-up.
I think the start-up ecosystem is a dynamic canvas where adaptability and innovation reign supreme. Our approach revolves around identifying start-ups with the potential to endure and flourish. We're excited about the transformative capabilities of AI, the resilience of founders, and the narrative power of storytelling. As we chart a course into 2023 and beyond, we remain steadfast in our commitment to unearth hidden gems that will shape the future of technology and business.
Managing Investments
For the past decade, the tech industry's rallying cry has been ‘growth at all costs.’ This mindset, driven by the seemingly limitless computing power described by Moore's law, led to the creation of new technologies and the establishment of winner-takes-all markets. However, amidst this race for rapid growth, the importance of longevity and resilience often faded into the background. It's imperative to reassess these priorities.
Founding a business with an expiration date is not the intent of any entrepreneur, yet very few early-stage companies contemplate the principles required for long-term survival. As we move forward, at 7strartup, we believe it's essential that we reevaluate our approach, giving equal weight to building businesses that endure as we do to achieve rapid growth.
Importance of the Art of StorytellingI think the start-up ecosystem is a dynamic canvas where adaptability and innovation reign supreme
In my worldview, I am an optimist. I firmly believe that AI holds the potential to tackle some of humanity's most pressing challenges, propelling us to new heights. However, in the realm of deep tech, first-time founders often grapple with the challenge of navigating uncharted waters. Deep tech thrives when founders are given the freedom to be unconventional, creative, and disruptive. The individuals we choose to invest in are technologists with a deep-seated passion and vision, coupled with robust business acumen. We invest in those who harbor dreams of solving real-world problems.
The art of storytelling, too, plays a pivotal role in the investment journey. Money flows in response to compelling narratives. We're entering an era where the ability to communicate a vision effectively can be as valuable as the technology itself. It's through these narratives that investors connect with the mission and potential of a start-up.
I think the start-up ecosystem is a dynamic canvas where adaptability and innovation reign supreme. Our approach revolves around identifying start-ups with the potential to endure and flourish. We're excited about the transformative capabilities of AI, the resilience of founders, and the narrative power of storytelling. As we chart a course into 2023 and beyond, we remain steadfast in our commitment to unearth hidden gems that will shape the future of technology and business.
