Anand Daniel, a partner at Peak XV Partners (formerly Sequoia Capital India & Southeast Asia), is a key figure in the region's startup ecosystem, with a particular focus on SaaS, enterprise software, and fintech. His journey from a tech operator at Intel to a leading venture capitalist gives him a grounded, empathetic perspective that founders highly value. He has been a crucial partner to a number of category-defining companies, including CRED, Kissflow, Darwinbox, and Moglix.

His insights on building global companies from India, navigating the founder's journey, and identifying deep, structural market shifts are a wellspring of wisdom for entrepreneurs.

On Founders and Leadership

  1. "One of the things we look for is, what is the 'founder-market story' fit?"
    Learning: The best founders have a deep, authentic connection to the problem they're solving. Their personal story and experiences give them a unique insight and an almost unfair advantage in their chosen market.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88
  2. "We look for founders who are deeply curious and are continuous learning machines."
    Learning: The ability to constantly learn, unlearn, and adapt is the most critical skill for a founder. The person who starts the company is often not the same person who can scale it to $100M ARR without significant personal growth.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk
  3. "The best founders have an amazing ability to attract talent that is way better than them."
    Learning: True leadership is not about being the smartest person in the room, but about having the vision and charisma to attract and retain people who are experts in their respective domains.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/building-a-team-of-a-players/
  4. "Grit is that innate ability to just keep going... It's about taking the punches and still moving forward."
    Learning: Every startup journey is a rollercoaster. Grit is the quality that allows founders to persevere through the inevitable troughs of sorrow and emerge stronger.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  5. "We look for missionaries, not mercenaries."
    Learning: Invest in founders who are driven by a deep sense of purpose to solve a problem they are passionate about, not just those looking for a quick financial exit. Missionaries build enduring companies.
    Source: YourStory, https://yourstory.com/2021/08/sequoia-india-anand-daniel-investments-startups
  6. "A key question is, 'Why you?' What gives you the right to win in this market?"
    Learning: Founders need to articulate a clear and compelling reason why they are uniquely positioned to succeed. This "unfair advantage" is a critical part of the investment thesis.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88

On SaaS and Building from India

  1. "India has a once-in-a-generation opportunity to build a global SaaS powerhouse."
    Learning: The confluence of a large, skilled talent pool, favorable economics, and a maturing ecosystem has created the perfect conditions for India to become a dominant force in the global SaaS market.
    Source: Moneycontrol, https://www.moneycontrol.com/news/business/startup/india-has-a-once-in-a-generation-opportunity-to-build-a-global-saas-powerhouse-sequoia-indias-anand-daniel-7423501.html
  2. "The first phase of SaaS from India was about arbitrage. The next phase is about innovation."
    Learning: Indian SaaS is evolving from competing on cost to competing on product innovation, design, and building for new categories. This is the path to creating true global leaders.
    Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/indian-saas-startups-are-at-an-inflection-point-sequoia-indias-anand-daniel/articleshow/81817454.cms
  3. "For SaaS, the first million in ARR is about finding product-market fit. The next ten million is about finding go-to-market fit."
    Learning: The skills and strategies required to get initial traction are very different from those needed to scale. Founders must master the transition from a product-focused to a distribution-focused mindset.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk
  4. "Don't just build a product, build a 'point of view'."
    Learning: The best SaaS companies don't just offer features; they have a strong, often contrarian, opinion on how the market should work. This thought leadership is key to creating a new category.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/the-art-of-category-creation-in-saas/
  5. "Net Revenue Retention (NRR) is the magic number in SaaS."
    Learning: High NRR is the ultimate validation of customer love and product value. It creates compounding growth and is a key indicator of a healthy, scalable business model.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  6. "The founder has to be the first salesperson. You cannot outsource this."
    Learning: By selling the product themselves, founders gain invaluable, unfiltered feedback from the front lines, which is crucial for iterating on the product and value proposition.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88
  7. "In the early days, you are not selling a product, you are selling a vision."
    Learning: The first customers are not buying a polished set of features; they are betting on the founder's vision and the promise of a long-term partnership.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk

On Investment Philosophy and Strategy

  1. "We are in the business of backing outliers. It's not about the number of hits, but the magnitude of the hits."
    Learning: Venture capital returns are driven by a few exceptional companies. The focus is on finding businesses that have the potential for massive, transformative outcomes.
    Source: YourStory, https://yourstory.com/2021/08/sequoia-india-anand-daniel-investments-startups
  2. "Our goal is to be the first institutional cheque in the company."
    Learning: Partnering with founders at the earliest possible stage (the "idea" or "pre-PMF" stage) is where a VC can have the most profound impact on a company's trajectory.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  3. "It's less about the 'what' and more about the 'who' and 'why'."
    Learning: In early-stage investing, the idea or the "what" will inevitably evolve. The more important questions are: is this the right team ("who") and do they have a compelling reason for doing this ("why").
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88
  4. "The size of the market is a critical lens. We are looking for opportunities that can support a multi-billion dollar company."
    Learning: A large and growing Total Addressable Market (TAM) is a necessary condition for a venture-scale return. The market must be big enough to accommodate the founder's ambition.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk
  5. "Conviction is built over time. It's a series of micro-interactions and data points that build a complete picture."
    Learning: Investment decisions are rarely a single "aha" moment. They are the result of a thoughtful process of getting to know the founder, understanding the market, and building belief in the vision.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  6. "Patience is our biggest virtue. It takes a decade or more to build an enduring company."
    Learning: Venture capital is a long-term game. Investors must have the patience to support founders through the ups and downs of company building without pressuring them for premature exits.
    Source: YourStory, https://yourstory.com/2021/08/sequoia-india-anand-daniel-investments-startups

On Company Building

  1. "The number one job of a founder is to hire the best people."
    Learning: Everything else—product, sales, marketing—is a downstream effect of having the right team in place. Hiring is the highest leverage activity a founder can do.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/building-a-team-of-a-players/
  2. "Culture is built brick by brick, decision by decision."
    Learning: Culture isn't about posters on the wall; it's the sum of every decision you make, especially the tough ones. It's defined by who you hire, fire, and promote.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk
  3. "Focus on the 'inputs' you can control, and the 'outputs' will take care of themselves."
    Learning: You can't directly control your revenue or valuation. But you can control the quality of your product, the speed of your execution, and the satisfaction of your customers. Obsess over these inputs.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  4. "In the early days, you need to be a 'learning organization', not a 'knowing organization'."
    Learning: Assume that you don't have all the answers. The goal is to create a culture of rapid experimentation and learning, where you are constantly testing your hypotheses with customers.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88
  5. "A startup is like a leaky bucket. Your job is to plug the leaks before you pour more water in."
    Learning: Don't scale a broken model. Fix your product, your onboarding, and your churn issues (plug the leaks) before you invest heavily in sales and marketing (pouring more water).
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/

On the Founder-VC Partnership

  1. "Our role is to be a coach and a sparring partner, not a boss."
    Learning: The best founder-VC relationships are built on trust and mutual respect. The VC is there to provide guidance, challenge assumptions, and support the founder, who is ultimately the one running the company.
    Source: YourStory, https://yourstory.com/2021/08/sequoia-india-anand-daniel-investments-startups
  2. "The board meeting should be the one place where a founder can be completely vulnerable."
    Learning: Founders need a safe space to discuss their biggest challenges and fears without judgment. A constructive board provides this, acting as a "kitchen cabinet" for the CEO.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=yYJgaa-g0Jk
  3. "We are temporary custodians of capital, but we are permanent partners to our founders."
    Learning: The commitment to a founder extends far beyond the life of a single fund. The goal is to build a lifelong relationship based on a shared desire to build an enduring company.
    Source: The Desi VC Podcast, https://www.thedesivc.com/p/anand-daniel-sequoia-india-on-the-evolution-of-the-indian-saas-ecosystem/
  4. "The best board members ask the right questions, they don't provide the answers."
    Learning: A VC's role is to help the founder think through problems from different angles, not to dictate the solution. This empowers the founder to make the best decisions for the company.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=sU142k_3E88
  5. "Our reputation with founders is our most valuable asset."
    Learning: In the close-knit startup world, a reputation for being a fair, supportive, and value-adding partner is critical for attracting the best entrepreneurs.
    Source: YourStory, https://yourstory.com/2021/08/sequoia-india-anand-daniel-investments-startups
  6. On the firm's rebranding: "Peak XV is a new beginning for us."
    Learning: The transition to Peak XV Partners represents a doubling down on the India and Southeast Asia opportunity, with a dedicated, independent team focused solely on the region.
    Source: Peak XV Partners Announcement, https://www.peakxv.com/article/a-new-beginning/

Additional Key Learnings

  1. On The First Hire: "The most important hire a founder makes is their first non-founder executive."
  2. On Product-Led Growth (PLG): "PLG is a company-wide motion, not just a product strategy."
  3. On Enterprise Sales: "In enterprise, the sale doesn't end with the signature. It ends with the renewal."
  4. On The "Why Now?": "A great idea is often a result of a fundamental shift in technology or customer behavior. The 'why now' is critical."
  5. On Focus: "Startups die of indigestion, not starvation. The ability to say 'no' is a superpower."
  6. On Ambition: "We look for founders who want to build a company that will outlast them."
  7. On Building a Team: "Hire for slope (potential) and not just the y-intercept (current skills)."
  8. On The Downturn: "Constraints breed creativity. A downturn is a great time to build a resilient, capital-efficient business."
  9. On Storytelling: "The best founders are the best storytellers. They can articulate a compelling vision that inspires everyone."
  10. On Competition: "Don't build your roadmap based on your competitor's feature list. Build it based on your customer's problems."
  11. On Go-to-Market: "You need to find a repeatable, scalable, and profitable way to acquire customers. That's go-to-market fit."
  12. On His Operator Background: "Having been an operator helps me empathize with the founder's journey. I've been in their shoes."
  13. On Category Creation: "To create a category, you need to be a thought leader. You need to educate the market on a new way of doing things."
  14. On Building in Public: "Sharing your journey can be a powerful way to build a community and attract talent."
  15. On The Long View: "The public markets are a scoreboard, but they are not the game. The game is building a great company."
  16. On The Power of Community: "Surrounding yourself with a strong peer group of other founders is one of the best things you can do."
  17. On Personal Growth: "The company can't grow faster than its leaders. You have to constantly be up-leveling yourself."
  18. On The Role of a Board: "A board is there to help the founder see around corners."
  19. On The Future of Indian SaaS: "The next decade will see multiple $10B+ SaaS companies built from India."
  20. On Legacy: "The ultimate goal is to help founders build legendary companies that make a lasting impact on the world."