The companies at 100 billion dollar values, today were once just 2 people teams with an idea and a prototype.
Or better still, the transition from a MVP to a MVO, to a million users worthy
startup is what can happen here. This means, founding teams working on various startups in TSF have built the proposed solution/MVP
just about good enough, tested by their early adopters and finally well packaged for marketing. It is at this stage where we can be utilised the best.
The marketers and sales vendors of Preseed may join hands with them to bring early adopters/customer traction to these flawless MVPs.
Basically, this is also where your products can be scaled up, out of proportion.
What is good enough? Good enough means that the MVP should be used well by the early users, It doesn't not necessarily be perfect or even beautiful. But, have a MVP. Have something more than just an idea, is our point.
Email us at your funding requirements, projected disbursement of funds broadly, expected post-money valuation, and Slide Deck (with linkedin of each team member). We will contact you at our own will and time. Mention your funding requirements, projected disbursement of funds, expected post money valuation and Slide Deck. A detail document describing the founders and the story of your startup.
Remember this poem :
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:
If you can dream — and not make dreams your master;
If you can think — and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools:
If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: “Hold on!”
If you can talk with crowds and keep your virtue,
Or walk with Kings — nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds’ worth of distance run,
Yours is the Earth and everything that’s in it,
And — which is more — you’ll be a Man, my son!
Through the fee based startup accelerator Nishchal runs with his 3 extraordinary friends from his Mumbai office:
If you wish to invest some of your money into our fund, please email at firstname.lastname@example.org
If you don’t hear from us, it means we are not keen on making an investment in you. We are not in the business of stating reasons. The reasons may have more to do with us, than you. Anyway, the following buttons reveal what can be our chance or path to work together, in case we decide not to participate by directly investing money into your startup:
A traditional startup incubator — is a startup incubator that incubates a startup company of 2 or more people that has achieved some real traction in their product. This means that a traditional incubator invests about Rs. X lakhs in that startup and houses that startup for 3 months under their own roof to open an environment of co-learning among all entrepreneurs with its other portfolio startups under that same roof. So, the incubator is an investor that guides or invests their time in guiding you.
How it works — It takes 5% to 10% ownership in that startup for doing so. Such incubators are basically, funds. They take investments from other investors and invest that pool of money as a fund, per batch of 10 or more such companies.
We are not that nor will we be that.
When we become a fund ourselves, we will invest in startups that don’t need anything from us, other than the money. Basically startups we think that will be a grand success without our mental hustle for them. This will save us our time in indulging in matters of your operations to put time into startups that need our time, not our money first.
So, there are two categories of startups we have:
What - You .
For doing so,
Step 1 - Please dig this termsheet on
our Medium publication, Preseed essays, to understand the terms.
Step 2 - Copy and paste it, print it, sign it and send to us.
Our contracts are non negotiable in nature. They are standards we follow with every startup.
Those that need us, not our money, must read know Nishchal more. For then, they will understand what it means to facilitate investments into you through other investors. The rest can proceed to apply to us for money. Make it very clear to us through your email what you want from us and that you have read this webpage thoroughly.
Through such dealflow we broker deals to earn cash commissions and/or equity for opening our network of potential investors to your startup. These connections we have earned our of 15 years of perseverance in this industry. TSF Dealflow network is made up of people we have earned during our journey expressed throughout our web pages and blogs. The people we know are the people your business may need, to capitalise and capitalise big.
TSF is your team, to work on your investment facilitation, over your lifetime of such fund raises. So simply that overtime they keep bringing to you the right person with money. Then it is upto to you to convert for now the investor wants to just talk to the horse, from his own mouth, as we have already given them your name as our recommendation. During this process we keep hustling from your side of the table to help you receive investment to the point of money reaching your bank account. Only after this we consider our job done.
For the startups in TSF dealflow, our fee is their costt for doing incredible hand shakes Thehe best way of building a business is impactful and aligned handshakes. While in the process the founders get money perhaps worth exactly equal to the amount they were originally seeking from us.
Matches made in heaven - If the deal goes through, we take upto 10% commission and some equity. Why ? Because we make matches between investors and startups that add value in each other far beyond money. However, most importantly, we are getting you the most important immediate resource your business needs. Money. When Preseed introduces you, it matters. We have worked very hard to have now built an extraordinary network of those with money and will to aid an early stage startup. We have prepared most in our network to have that will, to support you with their time and money. We are charging you for that hard work of ours if it brings investment to you.
Before you proceed to dialogue with those we introduce you to, accept words written in contract with the precise equity and commission amounts.
Equity offer and service - The more equity you offer us, the better we are able to use our advisor network to extend our advisory to you. If the equity you offer us is 15% or more in advance, you get entitled to receive the service mentioned above, for a lifetime. Anyway, the equity and wealth we foresee we can earn from/thorugh you or your cooperation, will be directly proportional to how much of an effort we put into helping you raise money. The choice is yours. We are expensive, because, we recognise what we are bringing to your table — money, which is the next key to unlock your growth.
Our commissions rates are fixed on actual investment achieved. every single time you receive investment from anyone we introduce you to, or, say, if you receive investments from any of the associates of whoever we introduced you to, investments received now or/and later. the final valuations agreed upon will be determined between you and the investor. we will merely facilitate that conversation whereever required.
Note - our equity may get bought too on a pro-rata basis at the time of the deal with the investor. The preroragative to sell our equity will rest with us at all times during and post your next inestment round.
Sometimes we charge commission or any other service fee from the investor too. If Preseed makes any gain on it, it belongs to Preseed, it should not be a matter of concern to either the startup or the investor. For both startup and the investor got what they wanted.
As a matter of policy Preseed values a startup at a post Preseed handshake stage, at a minimum of 1 crore before it brings it forward for investment to the potential investor.
The investors are requested to also bet on the fact that what Preseed is brining to them as a dealflow, once was a mere set of humans with no startup in hand worthy enough, and it was at this time that Preseed held their hand to add its own input into that startup for years, from when founders were early 20 year old kids to now — when they are sitting in front of you.
To say the least, anything lower in valuation is exploitation of Preseed's network, their do good hippie spirit and their modern collective of visions. Startup assets which Preseed develops relationships with over years are very very valuable, because our network's entrepreneurial foundations are strong and deep.
A big part of the reason the startup will be successful is that it has us with them over a deal in good faith and words a couple of years ago and the startup decided to keep their word to us forever.
Anything we bring to you, no matter what you can do with it or not, never value it at less than 1 crore if you are suggesting a deal at all. I will not be interested in bringing anything to you if that be the case. It’s a matter of policy at Preseed and generally in all startup friendly logics in the world, that we accept a valuation of at least 1 crore. Anything of less value is not worth anyone of our's time. If we don’t get this right among you and I, a lot between us may be missed.
No small talks of collateral, security, safety etc. please. If you are looking for that, you are at the wrong place. This is about status quo changing possibilities that go to values of billions someday, but today may be just a person with a great portotype. Our investor friend has simply gotta be prepared to bear the cost of owning the proposed equity. Simple business math - they pay a cost to own some asset, in this case, not a piece of land, but a piece of a large possibility. High risk, sky high rewards.
Think of the deal with our portfolio startup, like this:
Value any startup I bring such that, if you were to own all of it, you were willing to pay 1 crore of upfront cost for 100% of it. Because the value of what I am bringing to you is greater than the possession of a 1 crore plot.
You are buying a piece of a larger piece of a real estate plot, so that it gives you gains in the future. This piece of land would at least be worth Rs. 1 crore. How do you buy a piece of plot less than that in a prime market of your city? You don't. So is the reason that you can't buy the startup we will be bringing to you at less than that value.
If you don't value the asset we bring to you at atleast that price in spite of the fact that Preseed is a partner in that asset, then you are undervaluing Preseed.
This minimum value of 1 crore per asset as MVP and founding team is the premise of our relationship.
Questions like, what happens if your money drowns, must be avoided please.
"My journey so far and our Google ranking has brought me to a place where a lot of early stage very good startup deals get known to me before they get known to anyone else.
At this stage that startup is generally a good looking opportunity either because:
1. The startup founder of it is really really smart.
2. The product looks like it could one day be with millions of users.
3. In some cases the customer metrics are already solid.
Normally the startups and entrepreneurs within the scope of Dealflow are going to be early stage startups looking to raise anywhere between 5 Lakhs to 5 crores.
Our plausible revenue would be -:
1. Commission from startups.
2. Annual fees from funds/investors.
3. Equity from startups.
I want to build Dealflow and observe the trend, get into deal flows and learn in the process more and more about early stage startup investments and good opportunites, to build an early stage startup research company that researches on investment performance of early stage startups to get trends and experiences.
We will, eventually, over a 10 year period, want to make TSF into a fund+company that investors go to for getting esrliest deal flow and advisory all at the same time, in context to early stage startup investments. Because of us, investors should be able to put their money at a better and more calculated opportunity".
Evrything at TSF is subject to market risk. Please be careful before investing in us.
*So far TSF is a nearly plausible concept.
Startups are choosing us because of everything stated in this article
We are doing more for the cause of entrepreneurship than we have put in words here for we wish to have you know what we are doing by the result of all that we are doing, not by words alone.
We are a culture of liberal minds trying to do our thing in harmony with another. Let’s just say, Preseed, as an organization, is designed such that we find harmony in each other by way of who we are anyway. Preseed brings the extraordinary minds and hence, the extraordinary creativity and hustle to the table on anything it touches upon.
Why the standard question of traction may not be the most
appropriate question for a moonshot innovation in its nascent stage when
founders are seeking support from investors to continue their R&D
For now, let's turn the lens on another kind of traction- which we have already created- meaningful moments and activities noticed by users, media and the tech community.
I often wonder if my life would be the same inspired life if I was chasing traction instead of a chasing a world changing vision which did not fit the bill for the rule of - build MVP - followed by traction, before I could raise money. Please tell me how I would then change the world for the better?
Start-up land is littered with failure.
Every hack on smart investing will preach that before approaching an investor you must have dragged your feet over the thorns littered over that holiest of grails- TRACTION. For after all what good is a business that does not yield profits? Yet, if that critical question on TRACTION is duly asked and answered before any investment, why the high rates of failure and a subsequent celebration of failure as the norm in start-up land? Could it be that the holy grail itself is flawed in a period where most of our problems have been solved or are perceived to have been solved to an acceptable degree beyond which improvements are not possible in a human, hence imperfect world?
I say YES.
Most start-ups offer incremental changes, but what if you had a moon- shot innovation for a problem the world has ceased to consider as one. Or a problem considered solved?
Moonshots, by their very definition, need to be hurtled until something big is identified. The innovation after that identification might take time, in some cases, a very long time. (Would you not say that the problem you are addressing is a blind spot- that the best in chatting-productivity has been achieved and that is just the start of the moon shot you must make to disrupt existing models of education?)
Read step 4 on www.preseed.in.
Imagine, if you were the only person with the vision that there was scope for yet another chat app for people who were looking to be productive over chats and the rest of the world did not agree with you.
Imagine if you did not know how to code, nor did you have the time to learn how to code. No big deal there. Watch what Sam Altman has to say about this:
Yes, you can’t code, don’t have the time to learn so you hire the best
to code for you. It must not surprise you that great people come at a
cost. Those great people may have had a life of their own before they
met a vision that I imparted to them and wished to be consumed by it but
for the mundane but real considerations of everyday living.
More so, one requires neat sums of money for the world will not accept a MVP that challenges its collective blind spot.
So, my challenge is to manifest a never-before vision into a finger-licking good looking product that elicits a collective gasp of “why did we not see that earlier”, from the world.
(To those who repeat the trite Form Follows Function rule, let me quote just one example- Snapchat, that turned that norm on its head. It was a beautiful but tedious product to begin with. It bettered itself over time)
Money, of course- now.
Traction, not just yet.
So, let's let Preseed run in the nomadic boundless 'hippie, no excel sheet, no slide deck, no running after investors, no giving or taking unnecessary repetitive gyan. Let Preseed speak to partners and other vested interests after you, only through substantial results weighed only in millions of clear dollars and millions of users of our products. Until we reach there, we need your understanding.