Rukam Capital's Archana Jahagirdar Advises, "Build A Credible Business, Whether It Is Fashionable Or Not"
In today's fast-paced business landscape, startups often face challenges in aligning their vision with the expectations of venture capitalists (VCs) and investors.
Founders can be taken aback when their innovative ideas and growth fail to gain traction among investors. A significant reason for this disconnect is that VCs often march to the beat of a different drum than founders. Their focus can shift rapidly in response to market trends and shifts, such as the current emphasis on generative AI.
Headwinds And Tailwinds
Archana Jahagirdar, Managing Partner, Rukam Capital points out the fluid nature of private market investments, "Investors in the private markets can and do change their minds, sometimes on a whim and other times in response to shifting markets." Jahagirdar says. "Founders may optimise their pitch decks by including the latest buzzwords to appeal to investors, but this doesn't always work out as expected."
She explains that this phenomenon is not entirely new. During the liquidity surge of 2021-22, the allure of being labeled as a direct-to-consumer (D2C) startup attracted investors, leading even traditional offline businesses to brand themselves as D2C. However, the landscape has evolved, and the buzzword has shifted to omnichannel strategies, making hot D2C startups pivot towards embracing both online and offline sales channels.
"The mismatch between capital requirement and capital availability is a tough hurdle for founders to navigate throughout their growth journey," Jahagirdar explains. She advises founders to focus on building credible businesses, irrespective of current trends. "This approach might lead to some heartbreak through rejections, but it increases the chances of securing the right kind of capital and fiscal prudence," she emphasises.
Investor-investee Relationship
Ultimately, the dynamic between founders and investors is complex, shaped by rapidly changing market conditions and emerging trends. Founders must strike a balance between adapting to investor expectations and staying true to their business goals. By doing so, they can navigate the challenges of securing capital while maintaining a sustainable growth trajectory. She expressed her views in her post on a social media handle.
