Bharat Sethi, Founder of Rage Coffee and a seasoned angel investor, has spent the last decade backing over 35 startups. His approach is refreshingly candid, rooted in trust, empathy, and an unwavering belief in founders. For Sethi, angel investing is more than just a financial endeavour—it's a deeply personal journey of supporting visionaries and their dreams.
The Founder's First Philosophy
Sethi's investment philosophy revolves around the founder rather than just the business model. “Backing the right founders” is his cardinal rule, and he insists on spending significant time with them before making any financial commitment. He believes that trust and compatibility are crucial. “Get convinced they are people you’d hang out with outside of their business,” he emphasises. This human connection lays the groundwork for a relationship that goes beyond spreadsheets and projections.
Once the investment is made, Sethi's approach is crystal clear, let founders operate with full autonomy. “They are the rulers of their universe and have all the right to lead with their own choices,” he states. For him, respect for their vision and decisions is paramount. Whether it's about their operational strategies or the investors they choose for their cap table, Sethi advocates giving founders complete freedom.
Trust, Not Micromanagement
Sethi sets himself apart by firmly opposing micromanagement. “Once invested, do not disturb the founders,” he insists. This principle underscores his belief that founders should have the space to navigate their challenges and innovate without undue interference. His communication with them is minimal and always purposeful. “Do not call the founders for anything other than chilling,” he says, emphasising the importance of maintaining a relationship built on mutual respect rather than constant demands.
In times of adversity, Sethi believes in standing by the founders unconditionally. “Always believe in their vision and stand shoulder to shoulder in tough times,” he says, acknowledging that challenges are an inevitable part of the entrepreneurial journey. This support, he explains, fosters confidence and strengthens the bond between investor and founder.
Backing Markets, Backing Potential
Sethi's investments are guided not just by people but also by the potential of markets he believes in. He carefully chooses industries he understands and is optimistic about, aligning his financial backing with his personal convictions. His investments are less about chasing trends and more about identifying sustainable opportunities led by capable leaders.
Once he commits, Sethi's role becomes that of a silent supporter. He propagates positivity and good energy for his portfolio companies, avoiding any behavior that might erode the founders’ confidence. “Never get them to a position where they stop believing you wish the best for them,” he advises.
The Balancing Act
While Sethi gives founders autonomy, he also makes himself available as a resource. “Call them anytime to ask if they need help, but never expect them to be available for you,” he says. This selflessness, he believes, is key to building a relationship of trust and support. He also respects the boundaries between founders and their teams, only engaging with employees when explicitly permitted.
His hands-off approach doesn’t mean indifference. On the contrary, Sethi remains deeply invested in the success of his portfolio companies. He believes that by stepping back and letting founders lead, he creates an environment where innovation and growth can thrive.
Sethi’s angel investing journey has been one of immense learning and gratitude. He credits his own investors for shaping his approach, describing them as exemplars of trust and empathy. “I’m super lucky to have so many of such investors with me,” he says, expressing gratitude for the lessons he’s learned from their support.
For Sethi, angel investing isn’t just about returns—it’s about relationships, respect, and fostering the growth of visionary entrepreneurs. His blueprint serves as a compelling reminder that in the high-stakes world of startups, the human element often matters the most.
