When an Investor visits your office, it generally indicates a deeper interest in the Company. They aren’t just evaluating your business idea or financials, these visits provide a unique opportunity to assess the intangibles: founder-VC alignment, team culture, and value systems. It’s not so much about creating an impression but about engaging in a structured and meaningful conversation. The goal is to delve deeper into crucial aspects of your startup. Preparedness on both sides of the table is essential to ensure the dialogue is productive. Let’s explore the questions VCs often ask and their significance.
1. What inspired you to start this business?
VCs often start with this question to understand your personal connection to the problem you’re solving. They’re gauging your passion and motivation, as these often determine how resilient you’ll be in tough times.
Share an authentic story that demonstrates your deep understanding of the problem and your commitment to solving it.
2. How well does your team work together?
The VC might want to observe your team’s dynamics, collaboration, and shared vision. A cohesive team is crucial for executing your startup’s vision effectively.
Pro Tip: Share examples of how your team has overcome challenges together or adapted to changes.
3. Can you give us a walkthrough of your product or service?
This is an opportunity to showcase what you’re building. A hands-on demo or live interaction with your product can leave a lasting impression.
Pro Tip: Focus on usability, differentiation, and customer value. Address how your product solves a key problem better than competitors.
4. Who are your customers, and what feedback have you received?
VCs want to see that you’re customer-obsessed and that you’ve validated your product-market fit with real-world insights.
Pro Tip: Provide specific examples, experiments, or testimonials that demonstrate customer satisfaction and loyalty.
5. What’s your biggest challenge right now?
This question tests your self-awareness and your ability to identify and prioritize issues. VCs are looking for founders who are transparent and solution-oriented.
Pro Tip: Be honest but also proactive. Frame your challenges as opportunities for growth and explain how you’re addressing them.
6. What milestones are you aiming to achieve in the next 12-18 months?
This helps VCs understand your strategic roadmap and whether you have a clear plan for growth.
Pro Tip: Discuss realistic and measurable goals that align with the funding you’re seeking.
7. How do you measure success?
VCs are interested in understanding your KPIs and how you track progress.
Pro Tip: Highlight both quantitative and qualitative metrics, such as revenue growth, customer retention, or employee satisfaction.
8. What’s your company culture like?
A strong company culture can be a significant driver of long-term success. VCs want to ensure you’re building an environment that attracts and retains top talent.
Pro Tip: Share how you’ve intentionally shaped your culture and how it aligns with your mission and values.
9. What are the most common objections you hear, and how do you address them?
VCs are testing your ability to handle criticism and objections, which are inevitable in any business.
Pro Tip: Be prepared to discuss common pushbacks and how you’ve used feedback to refine your product or pitch.
10. What’s your Right to Win?
Investors want to know what sets you apart and how sustainable your advantages are.
Pro Tip: Be specific. Whether it’s proprietary technology, an exceptional team, or unique market insights, articulate why you’ll win.
11. How are you using your existing resources and capital?
VCs look for efficient and effective use of resources. They want to see that you’re frugal without compromising growth.
Pro Tip: Be transparent about your current burn rate and how you’re maximizing value from your expenditures.
12. What keeps you up at night- Pre-Mortem Analysis
This question is a deeper dive into your biggest concerns and how you’re addressing them.
Pro Tip: Share your concerns candidly but also demonstrate how you’re taking proactive steps to mitigate risks.
13. How can we help you beyond capital?
Many VCs aim to be value-added partners. This question signals their interest in understanding how they can support your growth.
Pro Tip: Highlight areas where you’d benefit from their expertise, network, or strategic guidance.
Final Thoughts
In-person visits are an opportunity to deepen relationships and build trust. By anticipating their questions and preparing thoughtful, transparent responses, you can demonstrate your potential and readiness to scale. Remember, these visits are also a chance for you to evaluate the VC—alignment is a two-way street.
Dr. Malpani: Congratulations on starting your journey as an entrepreneur! Starting up is exciting but also challenging. What’s on your mind today?
Entrepreneur: Thank you, Dr. Malpani. I’ve been working on my startup idea, but one thing I keep hearing about is the lack of trust in the Indian startup ecosystem. It seems like no one trusts anyone—founders don’t trust investors, investors don’t trust founders, and even within VC firms, there’s so much politics. It’s overwhelming. How do I navigate this?
Dr. Malpani: You’ve touched on a critical issue, and I’m glad you’re thinking about it early on. Lack of trust is indeed a significant problem in our ecosystem. Unfortunately, it stems from the fact that many people prioritize short-term gains over long-term relationships. But trust is the cornerstone of any successful business, and it’s essential to build it consciously. Let’s break this down.
Entrepreneur: Please do. Where does this distrust come from, and how can I avoid falling into this trap?
Dr. Malpani: There is a lot of bad blood in the startup space, because of businesses like Byju’s that blew up spectacularly because the founder hid the truth from his investors. VCs have long memories, and once they have burn their fingers, they are going to be very wary. These episodes leave scars that hurt everyone. A lot of this distrust comes from a lack of transparency and unrealistic expectations on both sides. Entrepreneurs often feel that investors are only looking out for their own interests, while investors worry that founders aren’t being fully honest about their challenges or using funds responsibly. Within VC firms, the competition to take credit for successes breeds politics and backbiting. It’s a vicious cycle.
Entrepreneur: That sounds toxic. So, as a founder, how do I foster trust with my investors?
Dr. Malpani: It starts with open and honest communication. Share your vision clearly, but also talk about the risks and challenges you foresee. Don’t sugarcoat or overpromise—investors respect founders who are realistic and transparent. Keep them updated regularly on your progress, both good and bad. When you hit a roadblock, involve them in problem-solving rather than trying to hide it. This builds mutual respect.
Entrepreneur: That makes sense. But what about the investors? How do I know if I can trust them?
Dr. Malpani: Due diligence goes both ways. Just as investors evaluate you, you should evaluate them. Speak to other founders they’ve funded and ask about their experiences. Look at the investor’s track record—do they have a reputation for being supportive, or do they micromanage and interfere? Remember, choosing the right investor is like choosing a partner—it’s a long-term relationship, so align your values.
Entrepreneur: I hadn’t thought of it that way. But what if I’m desperate for funding? Isn’t it risky to be too selective?
Dr. Malpani: I understand that funding can feel like a lifeline, but taking money from the wrong investor can harm your business in the long run. If an investor doesn’t trust you or tries to exert too much control, it creates unnecessary stress and conflicts. It’s better to bootstrap for a bit longer than to compromise on the quality of your investor.
Entrepreneur: That’s reassuring. But how do I build trust within my own team? I’ve heard that even co-founders sometimes end up in conflicts.
Dr. Malpani: You’re right—trust within your team is just as important. Start by being transparent about your vision, goals, and challenges. Clearly define roles and responsibilities to avoid misunderstandings. Encourage open communication and create a culture where team members feel safe to express their ideas and concerns. And most importantly, lead by example. When your team sees you acting with integrity, they’ll follow suit.
Entrepreneur: That’s helpful. But what about the broader ecosystem? Is there a way to change the culture of distrust?
Dr. Malpani: Changing the culture requires everyone—founders, investors, and VCs—to prioritize ethics and long-term thinking. As an entrepreneur, you can’t control others, but you can set an example. Build your business ethically, treat your stakeholders with respect, and deliver on your promises. Over time, your reputation will speak for itself, and you’ll attract like-minded people who value trust and transparency.
Entrepreneur: It sounds like trust-building is a continuous effort. Are there any specific practices you recommend?
Dr. Malpani: Absolutely. Here are a few practical tips:
Entrepreneur: These are great tips. But what happens when trust is broken? Can it be repaired?
Dr. Malpani: Trust, once broken, is hard to rebuild, but it’s not impossible. The key is to acknowledge the breach, apologize sincerely, and take concrete steps to make amends. Rebuilding trust takes time and effort, but if both parties are willing, it’s doable. However, prevention is always better than cure, so focus on maintaining trust from the outset.
Entrepreneur: Thank you, Dr. Malpani. This has been an eye-opening conversation. I feel much more confident about navigating the ecosystem now.
Dr. Malpani: You’re welcome. Remember, trust is the foundation of every successful relationship, whether it’s with your investors, team, or customers. Stay ethical, stay transparent, and always focus on the long term. If you ever need guidance, feel free to reach out. We’re here to support entrepreneurs like you who want to build sustainable, scalable, and profitable businesses. Our website is www.malpaniventures.com
Position: Investment Research Intern
Type: 9-Month Internship Program
Location: Mumbai, India
Compensation: Paid Internship Program
About Malpani Ventures:
Malpani Ventures is a distinguished family office that deploys the personal capital of Dr. Aniruddha Malpani into early-stage companies. Our primary focus lies in funding frugal innovation ventures within India.
Why Join Us?
At Malpani Ventures, you will gain hands-on exposure to the entire investment lifecycle. Working closely with a small, dynamic team, you will interact with founders, investors, and our investment committee (IC). By the end of the program, you will be well-versed in early-stage investing—a perfect launchpad for a career in startups or venture capital.
Responsibilities:
· Grasp and align with the family office’s investment philosophy and objectives.
· Enhance Malpani Ventures’ online presence through engaging social media posts, website blogs, and thought leadership content.
· Collaborate with the operations team to streamline internal processes, including MIS reporting and weekly updates.
· Actively participate in investment team meetings, providing actionable insights and contributing to deal evaluation—both quantitatively and qualitatively.
· Assist in crafting and implementing long-term investment strategies.
· Support portfolio companies on various fronts, from HR queries to strategic consulting.
· Prepare reports, analyses, and presentations to support internal processes.
· Continuously seek opportunities for process improvement and operational efficiency.
Requirements:
· Bachelor’s degree in any field with a strong passion for business and startups
· Passion for reading, continuous learning, and self-improvement.
· Excellent organizational and multitasking abilities.
· Strong interpersonal and communication skills.
· Preferred experience in writing and maintaining a blog.
· Proficiency in Microsoft Office (Excel and PowerPoint).
· Ethical, collaborative approach to decision-making and relationship management.
How Will This Internship Benefit You? You will:
· Gain hands-on experience across all stages of deal-making.
· Develop insights into early-stage investing while working closely with founders, investors, and the IC.
· Learn to evaluate and manage investments with a long-term perspective.
· Be part of a program designed to be both enriching and enjoyable, paving the way for a full-time career in startups or VC investing.
Application Process:
Interested candidates are encouraged to thoroughly explore our website and available resources to understand our investment philosophy.
Please send an email to pitch@malpaniventures.com with the subject line: “Investment Research Intern – [Your Name]” and include the following:
1. Your updated resume with links to your social media profiles, blogs, or other online platforms.
2. A writing sample or a summary of a recently read book that showcases your analytical and communication skills.
3. A motivation letter explaining why you want to join Malpani Ventures and how your skills align with this role.
4. A one-page investment thesis on a startup/sector you personally find promising.
Note: Only applications that include all four components will be considered.
We look forward to reviewing your application and welcoming you to our team!
At Malpani Ventures, we believe in uncovering what drives sustainable startup growth. Our Principal, Dhruv Sane has conducted a deep dive into understanding how consumer-facing applications can achieve scale, using Duolingo as a powerful case study.
This piece looks at the strategies that made Duolingo successful and offers practical advice for founders who want to create lasting products. The summary below highlights key takeaways from this exploration, while the detailed analysis linked at the conclusion offers a comprehensive view for those eager to dive deeper.
Why Duolingo is Worth Studying:
Key Lessons for Startup Founders:
Duolingo’s relentless focus on retention, efficacy, and value-driven growth offers a playbook for startups aiming to scale sustainably. Take a deeper look at this playbook & other frameworks for founders in the article linked below
Read the complete blog here: Ground-up thoughts on building a consumer application
Founder: Dr. Malpani, I’ve been in the corporate world for over 15 years, and I feel like I’ve hit a ceiling. I want to start my own business, but the risk of starting from scratch feels overwhelming. How do I even begin?
Dr. Malpani: I hear this all the time from experienced professionals like you. The idea of jumping straight into a startup can be daunting, but there’s a smarter path—buying and running a profitable business from someone who’s ready to retire. Instead of going from 0 to 1, you can go from 1 to 10. This will be faster, and less risky as well !
Founder: Buying an existing business? I hadn’t really thought of that. Isn’t it expensive?
Dr. Malpani: Not necessarily. Many profitable small and mid-sized businesses are run by promoters who are over 50. They’re often looking to retire because their children aren’t interested in continuing the family business. These are hidden gems. The key is to find businesses that align with your domain expertise.
Founder: That sounds interesting. But how do I identify the right business to buy?
Dr. Malpani: Start with the industry you know best. Look for businesses where you’ve already built relationships. If you’re in manufacturing, find a small factory owner nearing retirement. If you’re in tech, look for service-based firms that could benefit from automation or digitization. The secret lies in leveraging your domain expertise and network to uncover these opportunities.
Founder: I imagine convincing someone to sell their business is easier said than done.
Dr. Malpani: True, but that’s where your credibility plays a huge role. You’re not an outsider—you’re someone from the same ecosystem who understands the nuances of the industry. This builds trust. The more familiar you are with their operations and challenges, the more likely they are to see you as the ideal successor.
Founder: But how do I ensure the business is actually profitable and not a ticking time bomb?
Dr. Malpani: Great question. Due diligence is critical. You’ll need to carefully review the books, understand the financials, and identify any hidden liabilities. If you’re not comfortable doing this alone, bring in an accountant or a financial advisor. The goal is to ensure the business has strong fundamentals and growth potential.
Founder: What role does technology play in all this?
Dr. Malpani: Technology is often the game-changer. Many older businesses operate with outdated systems. By applying modern tech solutions—whether it’s automating processes, improving customer acquisition through digital channels, or using data analytics—you can make the business far more efficient and profitable. This fresh approach can breathe new life into an otherwise stagnant company.
Founder: But even if the numbers look good, buying a business sounds capital-intensive. I don’t have that kind of cash lying around.
Dr. Malpani: That’s where we come in. At Malpani Ventures, we believe in shared risk and skin in the game. You put some of your own money into the deal to show your commitment, and we’ll be happy to invest the rest. It’s a partnership. Your operational expertise combined with our financial backing creates a win-win scenario.
Founder: This sounds like a far less risky way to step into entrepreneurship compared to starting from zero.
Dr. Malpani: Exactly. Starting from scratch means battling competitors, building brand awareness, and figuring out product-market fit. But when you acquire an established business, you inherit existing customers, revenue streams, and operational stability. You’re building on a foundation rather than laying the bricks yourself.
Founder: And I imagine I’d still have to work hard to grow the business further, right?
Dr. Malpani: Absolutely. This isn’t a passive investment. You’re stepping into the driver’s seat. It requires effort to modernize the business, expand the customer base, and scale operations. But unlike the corporate world, you’re working for yourself. There’s no office politics—just the satisfaction of watching your hard work directly translate into growth.
Founder: How do I approach these business owners? I wouldn’t want to offend anyone by asking if they’re ready to sell.
Dr. Malpani: It’s all about positioning. Frame it as an opportunity to carry forward their legacy. Many business owners care deeply about what happens to their company after they leave. If they see you as someone who will nurture and grow the business, they’ll be much more open to the idea. Focus on how your involvement can preserve what they’ve built.
Founder: I like that perspective. What industries do you think are best suited for this model?
Dr. Malpani: Manufacturing, healthcare services, logistics, and niche tech services are all excellent candidates. Look for businesses that are essential but have low levels of digital transformation. These industries have low disruption risk and high potential for growth through simple modernization.
Founder: This sounds like a great way to transition into entrepreneurship without starting at square one.
Dr. Malpani: It is. Many successful entrepreneurs started by acquiring small businesses and scaling them over time. It’s a practical, frugal, and sustainable way to build wealth while making a meaningful impact.
Dr. Malpani: Want to learn more about creating sustainable businesses? Explore more insights and resources for entrepreneurs at www.malpaniventures.com. Let’s build businesses that put customers first!
At Malpani Ventures, our approach to investing is different. We provide patient capital, which means we back founders who are committed to building sustainable businesses- We often say that we are invested in the business so long as the founder is invested in his business. But what does it take for a founder to align with this philosophy? Here are the key traits we value in entrepreneurs:
1. Resilience
Building a startup is never a linear journey. Founders face challenges and unexpected problems. We look for people who stay strong under pressure instead of giving up. Their ability to overcome difficulties while sticking to their goals shows they have long-term potential.
2. Clarity
While the journey may be unpredictable, a founder must have a clear end goal. Clear communication helps leaders guide their teams and businesses, even when they face challenges. We value founders who can express their vision clearly and inspire others to support it.
3. Adaptability
Markets evolve, customer needs shift, and competition changes the landscape. Founders who thrive are those who can pivot without losing sight of their mission. Adaptability is critical.
4. Deep Customer Empathy
A successful business stems from solving real problems for real people. Founders who actively listen to their customers, iterate based on feedback, and genuinely care about the end user tend to build products that resonate.
5. Frugality
Patient capital doesn’t mean infinite resources. We believe in smart, sustainable growth. We look for founders who carefully manage their spending, ensuring their business runs efficiently without unnecessary burn.
6. Self-Awareness
No founder knows everything, and that’s okay. What matters is the willingness to learn and grow. Founders who acknowledge their strengths and weaknesses, actively seek advice, and surround themselves with complementary talent are those we trust to scale their ventures.
7. Integrity
We want to work with founders who prioritize doing the right thing—whether it’s towards their team, customers, or investors. Strong ethics create trust, which is essential in any enduring partnership.
Conclusion
Founders who exhibit these traits align with our philosophy of building meaningful, impactful, and sustainable companies. If you believe you embody these traits and are looking for a partner who shares your commitment to long-term value, we’d love to hear your story.
What traits do you value most in founders? Let’s discuss!