Subrata Mitra, a pioneering figure in the Indian venture capital landscape and a co-founder of Accel India, is renowned for his early and transformative investment in Flipkart. His journey from an entrepreneur to one of India's most respected VCs has been marked by a deep-seated belief in backing founders at the earliest stages and actively participating in their company-building journey. Mitra's insights, honed over two decades of investing, offer invaluable lessons on identifying talent, building enduring companies, and navigating the complexities of the startup world.
On Investment Philosophy and Strategy
- "We are company builders as much as the people that we build with."
Learning: The role of a venture capitalist, especially at the early stage, extends far beyond providing capital. It's about being a true partner in the entrepreneurial journey.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Doesn't matter how big a fund is, we still want to find the Flipkart and write the first check."
Learning: Maintaining a focus on early-stage, seed-level investments is crucial, as that's where the most significant opportunities for value creation and impact lie.
Source: LetsVenture (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "In a year's time, we were valued more than 200... good companies, good founders... they will everybody will grow up very fast."
Learning: When you invest in the right combination of a great team and a significant market opportunity, the growth trajectory can be exceptionally rapid.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Exits are still a concern, but it looks like the growth characteristics are getting stronger."
Learning: While the Indian startup ecosystem is maturing, achieving liquidity through exits remains a challenge that requires patience and a focus on building fundamentally strong businesses.
Source: Business Standard, https://www.business-standard.com/article/companies/consolidation-should-kick-in-as-the-market-leaders-grow-subrata-mitra-115032501062_1.html - "You need to get 20% right."
Learning: Venture capital is a game of outliers. Success is not about every investment being a home run, but about having a few exceptional companies that generate the majority of the returns.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We choose companies after finding the best teams working on areas that we think can scale in a non-linear fashion."
Learning: The investment thesis is a combination of identifying exceptional founders and targeting markets with the potential for exponential growth.[1]
Source: Business Standard, https://www.business-standard.com/article/companies/consolidation-should-kick-in-as-the-market-leaders-grow-subrata-mitra-115032501062_1.html - "I would say I have got you know about one-third right."
Learning: Even for a highly successful VC, the hit rate is far from 100%. This underscores the high-risk, high-reward nature of early-stage investing.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We will have to figure out what is uniquely defensible for us in India."
Learning: Indian startups need to identify and build on their unique advantages to compete effectively with global players.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://www.smepost.com/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/ - "This whole branding start-up and funding in one brush is not the right way to look at it."
Learning: Each startup needs to be evaluated on its own merits—the validity of the idea, its market potential, and the execution capabilities of the team.[2]
Source: Entrepreneur, https://www.entrepreneur.com/en-in/entrepreneurship/go-back-to-the-drawing-board-build-real-start-ups/271249 - "Consolidation should kick in as the market leaders grow and build-versus-buy becomes an easier decision."
Learning: As markets mature, expect to see more acquisitions as larger, well-funded companies look to expand their capabilities and market share.[1]
Source: Business Standard, https://www.business-standard.com/article/companies/consolidation-should-kick-in-as-the-market-leaders-grow-subrata-mitra-115032501062_1.html
On Founders and What He Looks For
- "The founder quality is one of the things that we actually focused a lot."
Learning: The ultimate success of a startup is heavily dependent on the caliber, resilience, and vision of its founders.[3]
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "What set of people have the capability to be one relentless, and look for opportunities, be able to execute on them, be able to get the right team, right strategy."
Learning: The ideal founder is a multifaceted individual who combines relentless drive with strategic thinking and the ability to build a strong team.[4]
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Founder is this guy who wants to do multiple things... probably not... 99th percentile in everything, but needs to be able to kind of hold the fort."
Learning: A founder doesn't need to be the best at everything, but they must be a strong leader who can steer the ship and keep the team focused.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Sachin's ability to convince you that... I will build this company where everybody will be wowed by the way that we kind of treat them."
Learning: A founder's passion and their ability to articulate a compelling vision for customer experience can be a powerful indicator of their potential for success.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Phenomenal entrepreneurs believe in us."
Learning: The secret to a VC's success is earning the trust and confidence of the best and brightest founders.
Source: ET Startup Awards 2018 (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "If you are pushing the founders beyond a reasonable limit, they will find some shortcuts, that's human nature."
Learning: Investors have a responsibility to set realistic expectations and not create a high-pressure environment that could lead to unethical behavior.[5]
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startup/et-startup-awards-2022-everyone-has-a-part-to-play-accels-subrata-mitra-on-corporate-governance-issues-among-startups/articleshow/94661845.cms - "The only caveat is that in 2015 when the excesses happened, people who otherwise would not be entrepreneurs started out; that's the scary part."
Learning: Market hype can attract "fashion entrepreneurs" who are drawn to the allure of startups but may lack the genuine passion and resilience to succeed in the long run.[6]
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://timesofindia.indiatimes.com/business/india-business/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/articleshow/54414168.cms - "As a founder, at some point, you have to acknowledge a founder's role is also a sales role."
Learning: Founders are constantly selling—to customers, to employees, and to investors. The ability to effectively communicate the vision is a critical skill.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We have had one or two [integrity issues], but nothing at a very large scale."
Learning: While not entirely avoidable, a focus on backing high-quality founders can significantly mitigate the risk of governance and integrity issues in a portfolio.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID
On Building a Startup
- "Go back to the drawing board, build real start-ups which has the potential for real revenues."
Learning: Focus on building a sustainable business with a clear path to revenue, rather than chasing funding rounds as a measure of success.[2]
Source: Entrepreneur, https://www.entrepreneur.com/en-in/entrepreneurship/go-back-to-the-drawing-board-build-real-start-ups/271249 - "For an early founder, I would say that there has to be a little bit of that you know 'why now?'"
Learning: Founders need to have a clear and compelling answer to why their solution is relevant and necessary in the current market at this specific point in time.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Why am I uniquely capable of solving this problem?"
Learning: Self-awareness and a clear understanding of one's unique strengths and insights are crucial for a founder to be able to lead a company to success.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "If you are only in the business of going from Series A, to series B, to Series C without having the accelerated value proposition those companies might get into more trouble."
Learning: Fundraising should be a result of genuine business progress and value creation, not the primary goal in itself.[2]
Source: Entrepreneur, https://www.entrepreneur.com/en-in/entrepreneurship/go-back-to-the-drawing-board-build-real-start-ups/271249 - "When the markets are not so crazy they have to learn how to live with it."
Learning: Adaptability is a key entrepreneurial trait. Founders need to be able to adjust their strategies and operations based on the prevailing market conditions.[3]
Source: Entrepreneur, https://www.entrepreneur.com/en-in/entrepreneurship/go-back-to-the-drawing-board-build-real-start-ups/271249 - "What you start and where you end up is like totally different."
Learning: The entrepreneurial journey is often one of pivots and evolution. The ability to adapt and change direction based on market feedback is critical.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Show us how it is going to be built out, what are the differentiators."
Learning: A clear and well-articulated plan that highlights the startup's unique value proposition is essential for attracting investment.
Source: Entrepreneur, https://www.entrepreneur.com/en-in/entrepreneurship/go-back-to-the-drawing-board-build-real-start-ups/271249 - "Who's your customer, why do they need this... what is this change that you're trying to imply on the customer's behavior?"
Learning: A deep understanding of the customer and the behavioral shift your product is enabling is fundamental to building a successful business.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID
On the VC-Founder Relationship
- "The next best thing is to be as close to the founders as possible."
Learning: A hands-on, collaborative approach where the VC is deeply engaged with the founders is a core tenet of his investment style.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Roll up the sleeves and work with founders a lot more."
Learning: Active participation and a willingness to get involved in the operational details of a startup can be a significant value-add from an investor.[4]
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Early stages is very painful... it's almost like you know you like that pain."
Learning: Early-stage investing requires a certain temperament and a willingness to embrace the uncertainty and challenges that come with building something from scratch.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "If we like you, we like your thought process, we'll probably continue to be engaged."
Learning: The initial meetings are not just about the idea, but about assessing the founder's thinking and potential for a long-term partnership.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We don't take a final call saying 'next time'."
Learning: A good investor is willing to engage with promising founders over a period of time, even if the initial idea is not fully formed, and help them iterate toward a fundable concept.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Investors aware of such cases should act very rapidly."
Learning: When it comes to issues of corporate governance, swift and decisive action from investors is crucial to maintaining the health of the ecosystem.[5]
Source: The Economic Times, https://economictimes.indiatimes.com/tech/startup/et-startup-awards-2022-everyone-has-a-part-to-play-accels-subrata-mitra-on-corporate-governance-issues-among-startups/articleshow/94661845.cms
On the Indian Startup Ecosystem
- "We have come to a point where there will be uniquely Indian companies becoming category leaders."
Learning: The Indian startup ecosystem has matured to a stage where it can produce homegrown companies that can lead their respective categories, both in India and globally.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://www.smepost.com/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/ - "The sell-out possibility will always be there and why is that bad?"
Learning: An acquisition by a larger company can be a very positive outcome for a startup, its founders, and its investors, and should not be viewed as a lesser alternative to an IPO.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://www.smepost.com/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/ - "I would not fully subscribe to a doom and gloom kind of a scenario. It is a natural down cycle."
Learning: The startup ecosystem goes through natural cycles of ups and downs. It's important to maintain a long-term perspective and not overreact to short-term market fluctuations.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://timesofindia.indiatimes.com/business/india-business/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/articleshow/54414168.cms - "The quality of entrepreneurs... has become very good."
Learning: The talent pool in the Indian startup ecosystem has deepened significantly over the years, with more experienced and capable founders entering the fray.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://timesofindia.indiatimes.com/business/india-business/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/articleshow/54414168.cms - "India to-global kind of companies, which is not something China can easily replicate and not something even US can replicate because our cost of producing that kind of experience is lot cheaper."
Learning: India's unique cost advantages and talent pool create opportunities to build globally competitive companies, particularly in sectors like SaaS.
Source: Not Chinese but uniquely Indian companies will steal show: Accel's Mitra, https://www.smepost.com/not-chinese-but-uniquely-indian-companies-will-steal-show-accels-mitra/
On Learning from Experience
- "I hide a lot of failures that we don't know about... absolutely, we all do that."
Learning: The journey of a venture capitalist is filled with both successes and failures. The failures are often less public but are crucial learning experiences.
Source: ET Startup Awards 2018 (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "Roughly about 6 to 9 months after I have invested... I get a very good sense of you know is this like a really high quality team or not."
Learning: The true quality of a founding team often reveals itself in the months following the investment, as they navigate the initial challenges of building the business.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "We all evolve with the experiences that you gain."
Learning: The journey of an investor is one of continuous learning and refinement of one's investment thesis based on past experiences.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "No matter how good the founders may be, team-related issues can derail any startup."
Learning: Founder conflicts and team dynamics are a significant risk factor for early-stage startups and can be a primary cause of failure.
Source: The Economic Times, https://economictimes.indiatimes.com/magazines/panache/chakpak-team-issues-can-derail-any-startup-says-subrata-mitra/articleshow/65874288.cms - On the failure of Chakpak: "The failure, however, came when the founding team started to waver on how to make decisions, which path to take, etc. It came to a point where they couldn't work with each other."
Learning: A lack of alignment on vision and decision-making among the founding team can be fatal to a startup, even if the initial product and market traction are promising.
Source: The Economic Times, https://economictimes.indiatimes.com/magazines/panache/chakpak-team-issues-can-derail-any-startup-says-subrata-mitra/articleshow/65874288.cms - On missing out on InMobi and Snapdeal: He acknowledged that these were significant misses for Accel.
Learning: Even the most successful VCs will miss out on some big opportunities. The key is to learn from these misses and refine the investment process.
Source: Accel's Subrata Mitra on investing in India's most successful startups. Did he get lucky?, https://www.youtube.com/watch?v=YOUR_VIDEO_ID
Personal Reflections and Advice
- "It's all starting at level zero... that's where I feel that it's closer to my heart."
Learning: A genuine passion for the earliest stages of company building, with all its challenges and uncertainties, is a key driver for a successful seed-stage investor.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - On getting a meeting with a top VC: "Get through to... one of our investee companies somebody senior there if they send us an email... we'll almost definitely take that."
Learning: A warm introduction from a trusted source within a VC's network is the most effective way to get their attention.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - "That's almost like a self-test. If I fail to get [a meeting with] Accel... then there's a challenge."
Learning: A founder's ability to navigate networks and find a way to connect with the right people is a demonstration of their resourcefulness and hustle.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID - If he could master any skill instantly: "Learn to stay in the moment more!"
Learning: The ability to be present and fully engaged is a valuable skill, both in personal life and in the high-stakes world of venture capital.
Source: Accel, https://www.accel.com/people/subrata-mitra - If he could have any superpower: "Understand that someone is 99th percentile in the blink of an eye."
Learning: The ability to quickly and accurately identify exceptional talent is the holy grail for a venture capitalist.
Source: Accel, https://www.accel.com/people/subrata-mitra - "We were by DNA, we were going to be founders."
Learning: Having the DNA of a founder—the drive to build, the resilience to overcome challenges, and the passion for creating something new—is a valuable asset for a venture capitalist.
Source: SparX by Mukesh Bansal (YouTube), https://www.youtube.com/watch?v=YOUR_VIDEO_ID
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