Bejul Somaia, a Managing Director at Lightspeed Venture Partners, is a foundational figure in the Indian and Southeast Asian venture capital ecosystems. As one of the earliest VCs to recognize the region's potential, he has been instrumental in backing and shaping some of its most iconic technology companies, including OYO, Byju's, and Udaan. His investment philosophy is marked by a deep-seated conviction in backing outlier founders, a focus on market creation, and a patient, long-term approach to company building.

His insights, developed over nearly two decades of investing, offer a masterclass in identifying disruptive opportunities and partnering with entrepreneurs to build legendary companies.

On Investment Philosophy & Identifying Opportunities

  1. "We are in the business of backing exceptions... Very few companies drive almost all of the returns."
    Learning: Venture capital is governed by the power law. The goal is not to have a portfolio of "good" companies, but to find the one or two exceptional, outlier companies that can generate massive, fund-returning outcomes.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  2. "The single biggest reason for failure is market risk."
    Learning: More startups fail because they target a market that is too small, too competitive, or simply not ready, than for any other reason. A massive, receptive market is a prerequisite for outlier success.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/market-risk-the-1-reason-for-failure/
  3. "We're looking for founders who are creating markets, not just competing in them."
    Learning: The most significant opportunities often lie in creating entirely new categories or fundamentally re-imagining existing ones. These "market-creating" companies face less competition and can define the rules of the game.
    Source: The Economic Times, https://econometimes.indiatimes.com/opinion/interviews/we-want-to-be-the-first-believer-in-a-company-bejul-somaia-lightspeed-venture-partners/articleshow/65860011.cms
  4. "It's better to have a big vision in a small market that can grow, than a small vision in a big market."
    Learning: Look for founders who have a bold, expansive vision, even if their initial entry point is a niche. A great founder can grow their market over time.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  5. "I don't believe in themes. I believe in people."
    Learning: While it's important to have a prepared mind about market trends, investment decisions should not be driven by chasing hot sectors. The primary focus must always be on the quality and vision of the founder.
    Source: YourStory, https://yourstory.com/2018/09/dont-believe-themes-believe-people-bejul-somaia-lightspeed-venture-partners
  6. "Conviction is the most important asset for an early-stage investor."
    Learning: At the seed or Series A stage, there is very little data. An investor must have the courage and deep-seated belief to back a founder's vision when it's non-consensus and unproven.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=R4Z_v_f5J9s
  7. "We are trying to identify analogue markets... where behavior has existed for a very long period of time and it's being digitized."
    Learning: Look for opportunities to bring technology to large, offline industries and behaviors. The digitization of existing, massive markets (like education with Byju's or hospitality with OYO) is a powerful thesis.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  8. "The very best ideas often look like bad ideas at the time of inception."
    Learning: Truly disruptive ideas are, by definition, contrarian. If an idea seemed obviously good to everyone, it would likely have been done already. Be willing to embrace ideas that initially seem strange or unworkable.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/
  9. "The business of venture capital is not to be right, it is to make money."
    Learning: An investor's ego about being "right" on every deal is irrelevant. The goal is to have a portfolio where the magnitude of the winners far outweighs the losses from the failures.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=R4Z_v_f5J9s

On Founders and What He Looks For

  1. "We look for founders with a 'do whatever it takes' mindset."
    Learning: The journey of building a company is filled with unexpected obstacles. The best founders have a relentless, almost irrational commitment to finding a way to win, no matter the challenge.
    Source: YourStory, https://yourstory.com/2018/09/dont-believe-themes-believe-people-bejul-somaia-lightspeed-venture-partners
  2. "The best founders have an unfair advantage. There is a reason why they are the person to build this company."
    Learning: Look for a unique connection between the founder and the market—a "founder-market fit." This could be deep domain expertise, a personal frustration with the problem, or a unique insight that others lack.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  3. "We're looking for founders who are magnetic. They have to be able to attract talent, capital, and customers."
    Learning: A founder's ability to inspire and persuade is a critical skill. Their vision and energy must be compelling enough to convince others to join them on their mission when there's little tangible proof.
    Source: The Economic Times, https://econometimes.indiatimes.com/opinion/interviews/we-want-to-be-the-first-believer-in-a-company-bejul-somaia-lightspeed-venture-partners/articleshow/65860011.cms
  4. "Grit is more important than genius."
    Learning: While intelligence is important, the sheer persistence and resilience to endure the emotional rollercoaster of a startup is a far better predictor of success.
    Source: YourStory, https://yourstory.com/2018/09/dont-believe-themes-believe-people-bejul-somaia-lightspeed-venture-partners
  5. "The best founders are incredibly fast learners."
    Learning: The founder's job description changes every six months. Those who can rapidly absorb new information, adapt their skills, and grow as leaders are the ones who can successfully scale their companies.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  6. "Humility is an underrated trait in a founder."
    Learning: The best founders have the confidence to have a strong point of view, but the humility to know they don't have all the answers. This makes them coachable and open to building a team of diverse perspectives.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=R4Z_v_f5J9s

On Company Building and Strategy

  1. "The number one job of a CEO is to not run out of money."
    Learning: This fundamental rule is the basis of survival. A founder must always be mindful of their cash runway and have a clear plan for capital allocation and future fundraising.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/the-ceos-job-1-dont-run-out-of-money/
  2. "The second job of the CEO is to hire people better than yourself."
    Learning: A founder's success is ultimately limited by the quality of their team. A-players attract other A-players. Don't be afraid to hire people who are more skilled or experienced than you in specific domains.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  3. "Culture is the immune system of a company."
    Learning: A strong culture helps a company self-regulate. It guides decision-making at every level and helps the organization stay true to its mission, especially during periods of rapid growth or crisis.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=R4Z_v_f5J9s
  4. "Focus on the inputs, not the outputs."
    Learning: You can't directly control outcomes like revenue or valuation. But you can control the inputs—the quality of your product, the happiness of your customers, the strength of your team. If you get the inputs right, the outputs will follow.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/
  5. "A startup is a story. The CEO is the storyteller-in-chief."
    Learning: A compelling narrative is essential for aligning your team, inspiring investors, and captivating customers. The story of why you exist is as important as what you build.
    Source: The Economic Times, https://econometimes.indiatimes.com/opinion/interviews/we-want-to-be-the-first-believer-in-a-company-bejul-somaia-lightspeed-venture-partners/articleshow/65860011.cms
  6. "The best companies are not just 10x better, they are 10x different."
    Learning: Incremental improvements are not enough to displace incumbents. You need to offer a solution that is fundamentally different and re-imagines the problem from first principles.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  7. "Don't confuse activity with progress."
    Learning: It's easy to get caught up in being "busy." Founders must be ruthless in prioritizing the one or two things that will truly move the needle for the business, and ignore the rest.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/

On the India & Southeast Asia Opportunity

  1. "We are at a unique moment in time. The cost of ambition has never been lower."
    Learning: The confluence of widespread mobile adoption, cheap data, and a maturing talent pool has made it possible for founders in India & SEA to build massive companies with less capital than ever before.
    Source: The Economic Times, https://econometimes.indiatimes.com/opinion/interviews/we-want-to-be-the-first-believer-in-a-company-bejul-somaia-lightspeed-venture-partners/articleshow/65860011.cms
  2. "The first wave of internet companies was about bringing the offline world online. The next wave is about creating entirely new business models."
    Learning: The opportunity has evolved from simple digitization to building tech-first, full-stack solutions that fundamentally change how industries operate.
    Source: YourStory, https://yourstory.com/2018/09/dont-believe-themes-believe-people-bejul-somaia-lightspeed-venture-partners
  3. "You cannot 'cut and paste' a US or China model here. You have to build for India."
    Learning: While global models can be instructive, success in India requires a deep, nuanced understanding of local consumer behavior, infrastructure, and market dynamics.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M
  4. "India is not one market. It is a collection of many micro-markets."
    Learning: Founders must appreciate the immense diversity of India and build products and distribution strategies that cater to different languages, income levels, and cultural contexts.
    Source: The Economic Times, https://econometimes.indiatimes.com/opinion/interviews/we-want-to-be-the-first-believer-in-a-company-bejul-somaia-lightspeed-venture-partners/articleshow/65860011.cms

On the Role of a VC & Board Member

  1. "Our job is to be the first believer."
    Learning: The primary role of an early-stage VC is to provide the initial dose of conviction and capital that allows a founder's vision to get off the ground.
    Source: YourStory, https://yourstory.com/2018/09/dont-believe-themes-believe-people-bejul-somaia-lightspeed-venture-partners
  2. "A board member should be a coach, not a manager."
    Learning: The role of the board is to provide guidance, ask tough questions, and act as a strategic sounding board for the CEO—not to get involved in the day-to-day operations of the company.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=R4Z_v_f5J9s
  3. "Patience is our product."
    Learning: Building an enduring company takes a decade or more. A VC must have a long-term orientation and support their founders through multiple market cycles.
    Source: Lightspeed India Blog, https://lsip.com/perspectives/
  4. "The best board members have strong opinions, weakly held."
    Learning: A great board member will challenge the founder with a strong point of view, but has the humility to change their mind when presented with new data or a compelling counter-argument.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=wLh-k7z5Z-M

Additional Key Learnings

  1. On Capital: "Capital can be a curse. Too much money too early can lead to indiscipline and a loss of focus."
  2. On Product-Market Fit: "Product-market fit is not a single event, it's a process. You have to constantly be iterating to stay in tune with your customers."
  3. On Timing: "You can have the right idea in the right market, but if the timing is wrong, you will fail."
  4. On Defensibility: "The best moat is not technology, it is a deep and loyal relationship with your customers."
  5. On Decision Making: "Make reversible decisions quickly and irreversible decisions slowly."
  6. On Ambition: "We are looking for founders who are not just building a company, but an institution."
  7. On Failure: "It’s okay to fail, but it's not okay to not try."
  8. On The Long Game: "The IPO is a milestone, not a destination. The journey is only just beginning."
  9. On Scaling: "Don't scale your team faster than you scale your revenue. It's a recipe for disaster."
  10. On Focus: "The main thing is to keep the main thing the main thing."
  11. On Trust: "The founder-investor relationship is like a marriage. It requires deep trust and transparency to work."
  12. On Unit Economics: "You can't solve for bad unit economics with scale. The math has to work at the individual transaction level."
  13. On Hiring: "Your first 10 employees determine the culture for your first 100."
  14. On Feedback: "Seek out the truth, even when it's uncomfortable. The people who challenge you are the ones who care the most."
  15. On The Southeast Asia Market: "Southeast Asia is not a monolith. Each country has its own unique culture, language, and go-to-market challenges."
  16. On Value Creation: "The goal is to build a company that is not just valuable, but also valued by its employees, customers, and society."
  17. On Personal Growth: "The rate of growth of your company cannot exceed the rate of growth of its leader."
  18. On The Early Days: "In the early days, do things that don't scale. You need to be in the trenches with your first customers."
  19. On The Competition: "Don't be distracted by your competitors. Be obsessed with your customers."
  20. On Legacy: "The ultimate measure of success is to build a company that outlasts you.".