11,714.85-83.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Two traits that Rajan Anandan looks for while investing in start-ups

Rajan Anandan, MD of Sequoia Capital, shares his take on unicorns in India and the important things he looks out for.

, ET Bureau|
Last Updated: Jan 20, 2020, 11.30 AM IST
0Comments
Agencies
MD of Sequoia Capital looks out for certain traits before putting his money in a company.
MD of Sequoia Capital looks out for certain traits before putting his money in a company.
For more than 15 years, Rajan Anandan has been investing in technology companies. But the MD of Sequoia Capital looks out for certain traits before putting his money in a company.

“As an early-stage investor, you are looking for amazing founding teams. Founders who really want to build very large businesses and are capable of doing that,” Anandan said at the India Economic Conclave.

The former VP for Google South East Asia and India added, “The other thing that you are looking for is large markets. Because at the end of the day, it takes 10 to 15 years to build a large business… To do that, you have to focus on large markets. It is very important that whatever you are trying to build is safe in these markets.”

Anandan explained how startup companies in India are reaching a value of over $1 billion. “There are really good founders who are trying to build niche companies. It is not difficult. There are great founding teams going after gigantic markets. That is what we are looking for,” he said.

Innovation is spreading all over and the need to make it big is what is in the minds of startup founders, he said. “Today, we are seeing a lot of Indian entrepreneurs who want to be global from day zero. When they launch, they want to be a global company. The best examples of those are of companies like Freshworks, Druva, Icertis. These are three SAAS unicorns and they are going places.”

The credit for this goes to the digital revolution and the internet. “What we are seeing in India is this incredible transformation in young India. They are ambitious, aspirational and more knowledgeable,” Anandan said.

ET Startup Awards 2019: Sachin Bansal, Piyush Goyal Set Couple Goals; Make Fashion Statemen...

of 8
Next
Prev
Play Slideshow

Two To Glow

26 Aug, 2019
Style and elegance paired up, as was evident with these couples who issued a sartorial statement at The Economic Times Startup Awards.
Next

Also Read

Startups should be allowed to list outside: Rajan Anandan

Rajan Anandan says wife Radhika Chopra inspires 14-year-old daughter more than he does

Focused founders, improved funding: Indian start-up ecosystem 2.0 impresses Rajan Anandan

India needs more shepreneurs: Rajan Anandan suggests better networking skills; Sheroes CEO & Mann Deshi Bank founder bat for financial freedom

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Popular Categories


Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service