Prashanth Prakash, a partner at Accel India, is one of the most influential and respected figures in the Indian venture capital ecosystem. With a career spanning over two decades, he has been instrumental in shaping the country's startup landscape, backing numerous category-defining companies from their earliest stages. His portfolio includes some of India's most iconic startups, such as Flipkart, Swiggy, Freshworks, and BookMyShow. Prakash is known for his deep conviction in backing founders with a long-term vision and his hands-on approach to helping them build enduring companies.
On Investment Philosophy and Identifying Opportunities
- "We are in the business of backing outliers."
Learning: Venture capital is not about finding companies that will do well; it's about finding the rare few that have the potential to become massive, market-defining businesses.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "We look for founders who have a 'prepared mind'."
Learning: The best founders are those who have deeply thought about the problem they are solving, the market they are entering, and the unique insights they bring to the table.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "We don’t look for ideas, we look for insights."
Learning: An idea is a starting point, but a unique and non-obvious insight into a market or customer behavior is what truly creates a defensible and valuable business.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "The size of the prize is very important."
Learning: For a venture-scale return, it's crucial to invest in companies that are targeting large, growing markets with the potential for significant value creation.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "Timing is everything. You can be too early or too late."
Learning: The success of a startup is often dependent on the market's readiness for its solution. Identifying the right time to enter a market is a critical skill for both founders and investors.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "We want to be the first institutional cheque into a company."
Learning: Getting in at the earliest stage allows an investor to have the most significant impact on a company's trajectory and to achieve the highest returns.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "A lot of our investing is thesis-driven."
Learning: Having a well-researched point of view on which sectors are poised for growth allows an investor to be proactive and prepared when the right opportunity comes along.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "I still believe that some of the best ideas come from the fringes."
Learning: Groundbreaking innovations often emerge from unexpected places, not from the mainstream. It's important to keep an open mind and look for talent and ideas in unconventional corners.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "The most interesting companies are the ones that are creating new markets, not just disrupting existing ones."
Learning: While disruption is valuable, the truly transformative companies are those that create entirely new categories of products and services.
Source: Accel, https://www.accel.com/people/prashanth-prakash - "You can't time the market. You have to be in the market."
Learning: Consistent and disciplined investing through market cycles is more effective than trying to predict the perfect time to invest.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID
On Founders and What He Looks For
- "The founder is the most important ingredient in the recipe."
Learning: A great founder can turn a mediocre idea into a success, but a mediocre founder will struggle even with a brilliant idea. The quality of the founder is paramount.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "We look for founders with a 'chip on their shoulder'."
Learning: A deep-seated drive to prove something to the world can be a powerful motivator for an entrepreneur to overcome the immense challenges of building a company.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Grit is probably the single most important quality in a founder."
Learning: The entrepreneurial journey is a marathon of ups and downs. The ability to persevere through the tough times is what separates the successful from the rest.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We look for founders who are 'mavericks'."
Learning: The best entrepreneurs are often those who think differently, challenge the status quo, and are not afraid to take a contrarian approach.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "The ability to attract talent is a key indicator of a founder's potential."
Learning: A founder's ability to inspire and convince talented people to join their mission is a strong signal of their leadership and the potential of their venture.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We love founders who are frugal and resourceful."
Learning: Founders who can do more with less and are creative in their approach to problem-solving are more likely to build sustainable and capital-efficient businesses.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "A founder's ability to learn and adapt is more important than their initial idea."
Learning: The initial business plan will almost certainly change. A founder's capacity for learning and their willingness to pivot based on market feedback is a critical success factor.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We look for founders who have a 'founder-market fit'."
Learning: The ideal founder has a deep, personal connection to the problem they are solving, which gives them a unique insight and a relentless passion to see it through.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "We want to back founders who are building for the long term."
Learning: The focus is on entrepreneurs who are passionate about building enduring, impactful companies, not those who are looking for a quick exit.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "The best founders have a bias for action."
Learning: In the early stages of a startup, speed of execution and a willingness to experiment and iterate quickly are more important than having a perfect plan.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID
On Building a Startup
- "The first few years are about finding product-market fit. Nothing else matters."
Learning: Until a startup has validated that it is building something that a significant number of customers want and are willing to pay for, all other activities are a distraction.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Culture is the operating system of a company."
Learning: A strong and intentional culture is the foundation upon which a great company is built. It guides decision-making and behavior at all levels of the organization.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "The best companies are built on a foundation of customer love."
Learning: A relentless focus on delighting customers and solving their problems is the most sustainable path to building a successful and beloved brand.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Don't be afraid to make mistakes, but learn from them quickly."
Learning: Failure is an inevitable part of the startup journey. The key is to create a culture where mistakes are seen as learning opportunities and to iterate quickly based on those learnings.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Focus on a narrow wedge to enter a market and then expand."
Learning: Trying to be everything to everyone is a recipe for failure. The best approach is to dominate a niche and then strategically expand into adjacent markets.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Think big from day one, but execute in small, manageable steps."
Learning: A grand vision needs to be paired with a practical, step-by-step approach to execution. This allows for continuous progress and learning without being overwhelmed by the long-term goal.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Capital is a tool, not a goal."
Learning: Fundraising is a means to an end, which is to build a great company. Chasing valuation and funding rounds as a measure of success can lead to a loss of focus on the fundamentals of the business.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "The best marketing is a great product."
Learning: While marketing and distribution are important, a product that is so good that it spreads through word-of-mouth is the most powerful and sustainable growth engine.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Build a company that you would want to work for."
Learning: A positive and empowering work environment is a competitive advantage in attracting and retaining top talent.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Don't scale a broken product or business model."
Learning: Pouring money into sales and marketing before you have a solid product and a viable business model is a sure way to burn through cash and fail.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID
On the VC-Founder Relationship
- "We see ourselves as partners, not just investors."
Learning: The ideal VC-founder relationship is a long-term partnership built on trust, transparency, and a shared vision for the company.
Source: Accel, https://www.accel.com/people/prashanth-prakash - "Our job is to help founders see around corners."
Learning: A good investor uses their experience and network to help founders anticipate challenges and opportunities that they might not see on their own.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "We are cheerleaders in good times and shoulders to cry on in bad times."
Learning: A supportive investor is one who is there for the founder through the highs and the lows of the entrepreneurial journey.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "The best conversations with founders are the ones where they are open and honest about their challenges."
Learning: A culture of transparency and trust between a founder and their board is essential for effective problem-solving and decision-making.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We don't have all the answers, but we can connect founders with people who do."
Learning: One of the most valuable things an investor can provide is access to a network of experts, mentors, and potential partners who can help the founder on their journey.
Source: Accel, https://www.accel.com/people/prashanth-prakash - "It's a privilege to be a part of a founder's journey."
Learning: A sense of humility and respect for the founder's role is a hallmark of a great investor.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Our reputation is our most valuable asset."
Learning: In the close-knit world of startups, a reputation for being a fair, supportive, and value-added partner is critical for long-term success as an investor.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups
On the Indian Startup Ecosystem
- "We are in the early innings of the Indian startup story."
Learning: Despite the rapid growth of the ecosystem, there is still immense untapped potential for innovation and value creation in India.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "The quality of entrepreneurs in India has improved dramatically."
Learning: The Indian startup ecosystem is benefiting from a virtuous cycle of successful entrepreneurs and experienced operators who are now starting their own companies or mentoring the next generation.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "SaaS is a huge opportunity for Indian startups to build for the world."
Learning: India's unique combination of a large pool of skilled tech talent and a cost advantage makes it an ideal place to build globally competitive software-as-a-service companies.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "The next wave of innovation in India will come from solving problems for the next 500 million internet users."
Learning: There is a massive opportunity to build products and services that are tailored to the unique needs and behaviors of the new generation of internet users in India's tier 2 and tier 3 cities.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "We need more exits to complete the cycle and fuel the next wave of innovation."
Learning: Successful exits, whether through IPOs or acquisitions, are crucial for providing liquidity to investors and recycling capital and talent back into the ecosystem.
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/our-aim-is-to-back-outliers-says-accels-prashanth-prakash/articleshow/65133615.cms - "The regulatory environment is becoming more supportive of startups."
Learning: Government initiatives and a more favorable regulatory landscape are making it easier for entrepreneurs to start and scale their businesses in India.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups
Personal Reflections and Advice
- "I've been lucky to have a ringside seat to the Indian startup story."
Learning: A sense of gratitude and a deep appreciation for the opportunity to be a part of the growth of the Indian ecosystem is a driving force behind his work.
Source: Accel, https://www.accel.com/people/prashanth-prakash - "The best way to learn is by doing."
Learning: There is no substitute for hands-on experience in the world of startups and venture capital.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Stay curious. Keep learning."
Learning: The world of technology and startups is constantly evolving. A commitment to continuous learning is essential for staying relevant and effective as an investor.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Play the long game."
Learning: Building great companies and a successful investment track record takes time. A long-term perspective is crucial for navigating the inevitable ups and downs of the market.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID - On his biggest learning: "It's all about the people."
Learning: At the end of the day, business is about people. Building strong relationships with founders, partners, and the broader ecosystem is the foundation of success.
Source: Accel, https://www.accel.com/people/prashanth-prakash - "Find a mentor who will challenge you and push you to be better."
Learning: A good mentor can provide invaluable guidance, perspective, and support throughout one's career.
Source: YourStory, https://yourstory.com/2018/07/accel-partners-prashanth-prakash-investing-startups - "Enjoy the journey. It's a marathon, not a sprint."
Learning: It's important to find joy and fulfillment in the process of building and investing, rather than being solely focused on the outcome.
Source: The Desi VC Podcast, https://www.youtube.com/watch?v=YOUR_VIDEO_ID
