Kerala’s Angel investors seems to know well the perspective of what makes a startup worth funding. They follow a cautious approach and it basically highlights the need for innovation, financial discipline and a strong leadership team.
Kerala Angel Network (KAN) president Raveendranath Kamath believes that startups must use their funds wisely. Angel investors are there to provide the initial push, but the startups need to innovate and build a strong foundation.
KAN investor Roy I. Varghese said that valuation is another critical factor and early-stage founders often face the challenge of balancing ownership retention with attracting investors. Valuation is not just about numbers, but it reflects the vision of the founders equipped with confidence. Another KAN investor Ajit Moopan even ties valuation to the self-esteem of founders suggesting that it shows the way they believe in their business.
The investments of KAN span diverse sectors like from D2C to AI and HR tech. Their main focus is on early-stage companies showing revenue potential or at least a working prototype.
Team behind the startup often becomes the deciding factor. P.K. Gopalakrishnan from Malabar Angel Network and other such investors talked about the importance of a credible and experienced founding team. He said that it is important to know the expertise, integrity and ability of the startups to adapt to market demands.
Some investors like those at Phoenix Angels focus on specific sectors such as renewable energy and defense. Government spending is significant in such sectors. Others like Venture Way Startup Ecosystem’s Vinay James Kynadi prioritize ability of the founder to execute ideas over the ideas themselves.
The investors of Kerala are not just looking for startups with potential but for leaders who can navigate challenges, adapt to changing markets and build scalable businesses.
