Avnish Bajaj, the founder and managing director of Matrix Partners India (now Z47), is a pivotal figure in the Indian startup ecosystem. Having transitioned from a successful entrepreneur who co-founded Baazee.com (which was acquired by eBay) to one of the country's most respected venture capitalists, his insights are highly sought after by founders and investors alike. His investment philosophy is deeply rooted in his own experiences as a founder, emphasizing a "founder-first" approach and a long-term vision for building sustainable businesses in India.
On Founders and Entrepreneurship
- "We back founders over markets."
Learning: A brilliant and resilient founder can navigate a challenging market, but a mediocre founder may fail even in a promising one. The quality of the entrepreneur is the most critical factor.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "The most successful people operate at the intersection of three things - passion, skill set and opportunity."
Learning: True success is found when what you love, what you're good at, and what the market needs, all align.
Source: IIT Kanpur, https://www.iitk.ac.in/dora/avnish-bajaj[2] - "The best way to get rich and control your own destiny is entrepreneurship."
Learning: Entrepreneurship offers a unique path to wealth creation and personal autonomy, putting you in the driver's seat of your life and career.
Source: IIT Kanpur, https://www.iitk.ac.in/dora/avnish-bajaj[2] - "Founders generate resources. You give them goals, they generate resources."
Learning: The most resourceful entrepreneurs don't wait for resources to be handed to them; they find creative ways to achieve their objectives with what they have.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "I think the best founders think 10 years out and then backwards."
Learning: Visionary founders start with a long-term goal and then map out the steps to get there, rather than just focusing on the immediate future.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "Only the paranoid survive." (Quoting Andy Grove)
Learning: Successful founders maintain a healthy sense of paranoia, always anticipating potential threats and challenges to their business.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - "My motivation comes from the founders themselves. When you sit across from someone willing to put everything on the line to build something meaningful, it's incredibly energising."
Learning: The passion and dedication of entrepreneurs can be a powerful source of inspiration for everyone in the startup ecosystem.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4] - "Markets and businesses don't execute—people do. Founders do."
Learning: Ideas and market opportunities are abundant, but it's the execution by a dedicated founder and team that ultimately determines success.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4] - "The number one thing we look for is hunger and hustle."
Learning: Beyond intelligence and experience, a relentless drive and a strong work ethic are the most crucial attributes of a successful entrepreneur.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/starting-a-business/what-goes-into-forming-a-decade-old-vc-team/286694[5] - "Business building is hard."
Learning: Acknowledging the inherent difficulty of building a company from the ground up is the first step toward preparing for the challenges ahead.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4]
On Investment Philosophy
- "Look for the smartest person in the room, don't be the smartest person in the room."
Learning: A key role of a venture capitalist is to identify and back founders who are experts in their domain, rather than trying to be the expert themselves.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "We don't invest in short–term disruptive events but rather behind long–term trends."
Learning: Sustainable investment success comes from identifying and backing fundamental shifts in technology and consumer behavior, not from chasing fleeting market disruptions.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "In this business, if one structures it too much, then one will miss the best opportunities."
Learning: Venture capital requires a flexible and opportunistic mindset. The most groundbreaking companies often don't fit into a predefined checklist.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "If we like a founder and don't like the market, we will still back the founder."
Learning: This reiterates the "founder-first" philosophy, emphasizing that a top-tier entrepreneur can often pivot and find success even if their initial market isn't ideal.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "When businesses start in downturns, they are built the right way."
Learning: Companies founded during economic downturns are often more capital-efficient and focused on building sustainable business models from the start.
Source: The Uppercase Podcast, https://www.theuppercase.in/podcast/episode/270c538a/avnish-bajaj-of-matrix-partners-on-how-he-picks-winners-and-what-it-takes-to-be-one[6] - "The best trait of an investor is questioning and curiosity."
Learning: A great investor is always learning, asking probing questions, and seeking to understand new markets and technologies on a deeper level.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "One company has accounted for 80% of the returns in 50-60% of the cases."
Learning: Venture capital returns are often driven by a small number of outlier investments. This highlights the importance of finding and backing companies with the potential for massive scale.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "Reputation cannot be copied. Reputation is a moat."
Learning: In the world of venture capital, a strong and positive reputation is a significant competitive advantage that compounds over time.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - "We believe in entrepreneurs that have an outstanding devotion to create something of very large value."
Learning: The firm seeks founders who are not just looking for a quick exit but are deeply committed to building large, impactful, and enduring companies.
Source: YourStory, https://yourstory.com/2012/07/avnish-bajaj-of-matrix-partners-on-seed-stage-investing-program-for-mobile-internet-startups[7] - "We are an outbound, hustle driven firm. We go out and try to meet as many founders as possible."
Learning: Proactively seeking out the best founders is more effective than passively waiting for deals to come to you.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/starting-a-business/what-goes-into-forming-a-decade-old-vc-team/286694[5]
On Building a Business
- "I have learnt that the best product ultimately wins."
Learning: While marketing and sales are important, a superior product that delivers real value to customers is the ultimate driver of long-term success.
Source: IIT Kanpur, https://www.iitk.ac.in/dora/avnish-bajaj[2] - "Focus is very important."
Learning: Trying to do too many things at once can lead to mediocrity in all of them. Concentrating on a core product and market is crucial, especially in the early stages.
Source: IIT Kanpur, https://www.iitk.ac.in/dora/avnish-bajaj[2] - "If there is speed and no direction, then there is no velocity."
Learning: Activity for the sake of activity is not progress. It's essential to ensure that your speed is aligned with a clear and strategic direction.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - "Our approach is founders first, yet thesis backed."
Learning: While backing the right founder is paramount, it's also important to have a "prepared mind" and a well-researched thesis on the markets and trends you are investing in.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "What is your right to play and what is your right to win?"
Learning: Entrepreneurs need to clearly articulate their unique advantage and why they are positioned to succeed in a competitive market.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I
On the Role of a VC
- "An entrepreneur turned investor by definition is able to empathize with the founders because they have been there before."
Learning: Having experienced the entrepreneurial journey firsthand provides a unique and valuable perspective when advising and supporting founders.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/entrepreneurship/how-avnish-bajaj-carried-his-legacy-of-entrepreneurship/288768[1] - "VC is an apprenticeship business."
Learning: The skills of a successful venture capitalist are best learned through experience and by shadowing and learning from seasoned investors.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/starting-a-business/what-goes-into-forming-a-decade-old-vc-team/286694[5] - "An investor lives in the zone of uncertainty. I don't know, let me find out. I don't mind being wrong as long as I can make money."
Learning: A key mindset for an investor is to be comfortable with ambiguity and to prioritize learning and financial returns over being right all the time.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I[3] - "What is your edge? Why would a founder take your money?"
Learning: In a competitive funding environment, VCs need to offer more than just capital. They must have a clear value proposition for the founders they back.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - "We're not consultants giving advice; we're partners trying to help them on their journey."
Learning: The ideal VC-founder relationship is a true partnership, with the VC acting as a supportive ally rather than just a dispenser of advice.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4]
On the Indian Market
- "Countries go through generational opportunities one or two times in their history and India is witnessing such a stage in its journey - independence to a developed nation by 2047."
Learning: This is a unique and opportune time to be building and investing in India, with the potential for massive economic growth and transformation.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4] - "Our GDP is headed toward $10 trillion, and tech penetration in our stock market could grow from 5% to 25-30%—that's a multi-trillion dollar opportunity."
Learning: The sheer scale of the Indian market and the increasing role of technology within it present an unprecedented opportunity for value creation.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4] - "India is a land of industrialists and micro entrepreneurs."
Learning: The Indian economy is characterized by a vibrant mix of large industrial houses and a vast network of small-scale entrepreneurs, creating a unique and dynamic business landscape.
Source: How B2B Companies Scale to Infinity | Zero to Infinity | Avnish Bajaj | Sudipto Sannigrahi - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - "We are very bullish on making India and the kind of companies that can be built around B2B and manufacturing."
Learning: The "Make in India" initiative and the growth of the B2B and manufacturing sectors present a significant and exciting investment opportunity.
Source: How B2B Companies Scale to Infinity | Zero to Infinity | Avnish Bajaj | Sudipto Sannigrahi - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx
On Resilience and Failure
- "Entrepreneurship is not for the faint-hearted."
Learning: The journey of an entrepreneur is filled with challenges and setbacks, requiring a high degree of mental and emotional fortitude.
Source: PlayToPotential, https://playtopotential.com/2017/08/14/avnish-bajaj-on-his-journey-as-an-entrepreneur-and-as-an-investor/[8] - "The need for resilience is intellectually understood but not fully internalized till events happen."
Learning: You can't truly understand the importance of resilience until you've faced and overcome significant adversity.
Source: PlayToPotential, https://playtopotential.com/2017/08/14/avnish-bajaj-on-his-journey-as-an-entrepreneur-and-as-an-investor/[8]
Additional Learnings and Quotes
- On career choices: "My goal was to work at the intersection of what I am good at, what I like, and what the world needs."
Learning: Finding a career that aligns with your skills, passions, and the needs of the market is a powerful formula for personal and professional fulfillment.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - On the founder-VC relationship: "The best founders suck it out of the VC."
Learning: Proactive founders actively seek and extract value from their investors, going beyond just the capital to leverage their network and expertise.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - On hiring for a VC firm: "We want self-motivated, hungry hustlers—who are also have IQ, EQ and are good learners."
Learning: A combination of drive, intelligence, emotional intelligence, and a capacity for continuous learning are the key ingredients for success in venture capital.
Source: Entrepreneur India, https://www.entrepreneur.com/en-in/starting-a-business/what-goes-into-forming-a-decade-old-vc-team/286694[5] - On humility for VCs: "I would look for a VC to be humble... sit with me as a peer."
Learning: The most effective VCs approach their relationships with founders as a partnership of equals, fostering a sense of mutual respect and collaboration.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - On the difference between first-time and second-time founders: The key difference is often the understanding of "speed and velocity."
Learning: Experienced founders are better at ensuring that their speed of execution is aligned with a clear and strategic direction.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - On the power of a good education: "A good education provides a strong starting point at best."
Learning: While a good education can open doors, it is the experiences you have and the decisions you make afterward that truly shape your journey.
Source: PlayToPotential, https://playtopotential.com/2017/08/14/avnish-bajaj-on-his-journey-as-an-entrepreneur-and-as-an-investor/[8] - On the nature of venture investing: It's a profession of delayed gratification.
Learning: It can take many years to see the results of your investments, requiring a long-term perspective and a great deal of patience.
Source: PlayToPotential, https://playtopotential.com/2017/08/14/avnish-bajaj-on-his-journey-as-an-entrepreneur-and-as-an-investor/ - On making decisions: "If I had to take this call 10-15 years prior in this environment, I would become an entrepreneur."
Learning: Recognizing the current market opportunity, he encourages aspiring professionals to consider entrepreneurship as a primary path.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - On the importance of outside-in thinking: VCs who become operators can bring a valuable strategic perspective.
Learning: Experience in venture capital can equip individuals with a unique ability to analyze markets and competitive landscapes, which is highly valuable in an operational role.
Source: Journey of India's leading Venture Capitalist Ft. AVNISH BAJAJ, Founder - Matrix Partners India - YouTube, https://www.youtube.com/watch?v=n7e4_h9t5-I - On providing advice to founders: The right advice is what is best for the founder, not what is best for the VC.
Learning: Trust is built when founders know that their investors are genuinely looking out for their best interests.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - On the evolution of the Indian VC ecosystem: "The game has completely flipped... VCs are chasing for founders' attention."
Learning: The balance of power has shifted, with top-tier founders now having more leverage and choice when it comes to their investment partners.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - On what LPs look for: "Show us the liquidity."
Learning: Limited Partners (the investors in VC funds) are ultimately looking for a return on their capital, making successful exits and liquidity events a critical measure of a VC firm's performance.
Source: 10 Unicorns, 5 IPOs, 26 Acquisitions – India's OG VC, Avnish Bajaj On Why Only Founders Matter - YouTube, https://www.youtube.com/watch?v=xxxxxxxxxx - On finding your life's work: "This is my life's work—my Ikigai."
Learning: He views his role in supporting and building the Indian startup ecosystem as his purpose, a convergence of his passion, skills, and the needs of the world.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4] - On the future: "We're not just dreaming of this future; we are committed to being in the trenches, building it together."
Learning: His vision for a developed India is not a passive hope but an active commitment to working alongside founders to bring that future to fruition.
Source: Z47, https://www.z47.com/people/avnish-bajaj[4]
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