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 from a flawless MVP to a million user worthy project is what can happen here*.
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.
If you are seeking an investment of less than Rs. 12 Lakhs, we have a very clear term, we take 1%
equity for every Rs. 1,00,000/- we invest in you.
Send an email to tsf10@preseed.in if you fit TSF so far.
*This means that if the 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. Good enough - what is good enough? Good enough means that the MVP should be used well by the early users, not necessarily perfect or beautiful. Does that mean every startup that is yet not beautiful will also get listed here? Yes. The project must be working well with its small number of early adopters. The marketers and sales vendors of Preseed will 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.
If you wish to invest some of your money into our fund please email at nishchal@preseed.in
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,
for the
reason may have more to do with us, then you. Anyway, this can be your lifeline from us, in case we decide not
to participate with you:
It will be a serious breach of trust if there is lack of confidentiality in any words I share with
you, in person, digitally or otherwise . Allow me to Proceed only if you commit to me that all words
exchanged between you and I will remain between just you I and the directors of our respective
companies; and no one else please.
For startups:
Through Dealflow we broker deals to earn cash commissions and equity, for opening our network to
your startup.
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.
Dealflow is your team, you train to work on your investment facilitation, over your lifetime of such
fund raises. So simply that they bring to you the right man/men/woman/women with money. Then it is
upto to you to convert for they want to just talk to the horse, from his own mouth. 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 do we consider our job done.
The startups should think they are doing incredible hand shakes and giving equities for these
handshakes instead. Period. This is the best way of building a business when all handshakes are
impactful and aligned. While in the process the founders get money perhaps worth exactly equal to
the amount they were originally seeking from us, to extend their own sustenance run way in exchange
for equity to those that helped them in getting that money, including us.
“Investors, as long as the startups have enough
money from you for their day to day life at ease for 1 year, they will make their dream happen. We
look for this quality/ingredient in the founder’s specifically”.
For investors:
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/Nishchal, their network,
their do good hippie spirit and their modern collective. Startup assets which Preseed develops
relationships with over years are very very valuable, “because my people are rare and their
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 I bring to you, no matter what you can do to it, never value it at less than 1 crore. 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 ours time. You need to on the side
agree with me that cafe de Math is worth 1 crore. If yes, then you are genuine in your valuations.
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. 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.
For startups:
Matches made in heaven - If the deal goes through, we take a
minimum 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 - If the equity you offer us is 15% or more in advance, you get
entitled to receive the service mentioned on Preseed Yoga (mentioned on nishchal.preseed.in, for a
lifetime. Anyway, the more 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, is key to your growth here on.
Our commissions rates are fixed on actual investment achieved every single time you receive
investment from anyone we introduce you to or if you receive investments from any of the
associates of whoever we introduced you to, Received now or/and later. Whenever, The final
valuations agreed upon will be determined between you and the investor. We will merely facilitate
that conversation.
The more equity you offer us, the better we are able to use our
advisor network to extend our advisory to you.
Note - our equity gets bought too on a pro rata basis at the time of the deal with the investor.
Plus
The more we are able to gain out of this fee, the stronger we serve our portfolio startup. It is
in the startup’s interest that we make good money in this process so we serve the startups with
all our intentions and sweat, out of bounds.
Sometimes we charge commission from the investor too. Be clear please that Preseed negotiates
the deal to bring investor the agreed upon % at the instance of his first payment to Preseed as
consulting fee. 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.
The founder should care about just one thing, that they may get money to live 1 more year at ease or
so, one day, and it is for that ease that they are sharing equity with someone Preseed is bringing
on board.
The bottom line is, the founder gets the money he seeked personally, as if his own shares got
bought.
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 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 3 year period, want to make it into a company that investors go to for
getting esrliest deal flow and advisory all at the same time, in context to early stage investments.
Because of us, investors should be able to put their money at a better and more calculated
opportunity.
*So far TSF is a nearly plausible concept.
Startups are choosing us because of everything stated in this article
He is a Fellow member of Institute of
Chartered Accountants, associate member of Institute of Company Secretaries of India and Life member of
Indian Institute of Public Administration,India. He enjoys experience of over 28 years in corporate
executory and advisory assignments working for and with Indian Industrial doyens, Law Firms, Industry
representative bodies (ASSOCHAM) and JV Companies (with foreign companies) operating in India. Fields of
his advisory practice include fiscal planning (direct and indirect taxes), conducting financial & legal
diligence, handling capital market related assignments, representing clients in front of Regulators (SEBI,
RBI etc.) in Adjudicatory proceedings, ensuring regulatory compliance in projects, appraisals of
investment / funding proposals, negotiation and documentation for investments, post-investment monitoring
on behalf of the investors, acting as declared Arbitrator in Agreements of funding/ commercial
associations. His clients are from a variety of industry segments: aviation, tourism, hospitality, real
estate & infrastructure, members of NSE/BSE, IT & ITES, Textile & Garments, Medical, Trading, Financial
product distribution & Wealth Management and NBFCs. - He is very closely associated with resourceful
national and international investors investing in / lending to Indian project companies as financial
investors with flexibility of investing in start-ups to grown-up projects to post-IPO preferential
allotment stage. His contemporary assignments include (a) advising and being part of an International
Medical Project in India, (b) advising and being part of an Indian Sponsor in setting up a Rs. 100 crores
Indian VC Fund for providing various funding options to the VC Undertakings, and (c) advising and being
part of an NBFC in India operating a flexible Investment set-up. He is also associated with various
reputed Management Consulting entities / Chartered Accountants in India (Mumbai and Delhi) for handling
senior level assignments on critical matters for their clients. He has also been part of various family
settlements of industrial groups. He enjoys remaining academically active by sharing his exposure with
serious students of Professional Management Courses and handling sessions on Strategic Financial
Management, Advanced Management Accounting & Costing, Security Laws, Merchant Banking - regulatory and
commercial aspects, VC Funding etc.
View detailed
Professional profile
On a journey to inspiring a bunch of very talented people to joining him on his mission to empower the entrepreneurs through very thoughtful ideas at Preseed, Nishchal has garnered a very original perspective on business building from bottom up. The ingredients he has built Preseed so far on have been anything but money. Hence, his ability to bootstrap is second to perhaps a very few. His ability to inspire is also second to a very few out there. Apart from that being an advantage to our portfolio companies in building their teams, his eye for design and novelty make him an incredibly good critique to our portfolio startups
As a part of my job at Preseed, I often stumble upon opportunities I would have wished to invest monetarily in, if I had personal money. It is exactly for this reason that I wish to build this fund.
For 2-10% equity and 3 lakhs per month for one year, or
up to 20% equity + Rs. 1 Lakh per month for one year, we will give you vendor related sevices - a scalable
ERP, website, advisory and content writing.
Why do we take the cash compensation while we already take equity compensation? To avoid getting into
hassles that come with the event of you giving up, because once we start something, we don't stop, in
spite
of the changes in your circumstances or our relationship. We go all in. Our mind gets immersed in it
wholly.
This process for us costs money. The fee keeps us going towards keeping our collective dream alive anyhow,
by sometimes being the last man standing. We like this freedom to not give up, which comes to us, with
your
fee payment.
Nishchal has 100s of vendors who have double the motivation to serve you due to the relationship they
enjoy with him. These vendors acknowledge that they are achieving greater success, through us, beyond just
your project, and that is why we are a key source to their motivation. What does this mean? It means, that
our word matters to them.
Nishchal has also served clients in ERP deployment for a subsidiary of Rs. 500 crore plus traditional
business group in Delhi called BK Group to branding for Libra Mattresses. You may read Nishchal's Linkedin
recommendations too.
This is what Nishchal can do with his vendors for you with his network -
1. With us you could lay a foundation for an idea and scale it up with far lower costs than you may
imagine. (This can be particularly usefull if tou are a son or a daughter of the owner of a large
company) - To channel your resources better, we just need one man or a woman from your team to train him
or her closely to lead your company soon. The best way to do this is to enable them to start one of their
own ideas to get their hands dirty upon as an entrepreneur. Train them prematurely, without the cushion of
your luxury. Let them taste that sweat. Then let them come back in and make that impact.
2. Along with that almost invariably whatever we attempt from within the scope of your resources will be
something unique in its offering.
3. You can raise any business concern with us.
Half of your business is about having the right kind of openings and network. Our prime motive through
above
words is to let you know that we will service/strengthen our own portfolio companies when those companies
become sizeable.
It is at the prerogative of the person communicating with you on our behalf, as to who he opens the
relationship with, for you. We do this for efficiency and relevance in communication. Often times our
representative will be brilliant enough to solve all you concerns. You may not even require the rest from
the network.
You getting it right in the first attempt with your vendor is what we ensure. Often times we keep your
payment with us before releasing the payment to our vendor when you chose to make a payment to us. We
assure you if you are not satisfied with our vendor then upto 100% of your money can be refunded. We
minimise your risk. We are called Prefund, because we actually get you ready through our consulting and
execution, for millions of dollars in investment. In short, we give world class services at 50% discount
because we are by Preseed. A company that goes out of its way to help a startup.
Remember, some startups fail at utilising guidance from their advisors because they listen well, but then
they allow the noise of their minds take back over. They may be sent an email with instructions or steps,
but they will mess up the order of the steps and expect results still. This has something to do with
clarity of next steps. I recently experienced this with a food startup I was advising.
They had to first transfer 15% equity to Preseed in good faith. And then I had to help them achieve their slide deck and vision with clarity. They underestimated the importance of this step, and jumped straight ahead at a few introductions I baked for them, for I trusted the startup, before even the share transfer. Instead of prioritising on their next step - of share transfer to us - they continued to move forwarded contrary to the words agreed upon, with noise of many steps together. They intended well, but their habit of going back to isolated decisions was taking over. The importance of staying coordinated with us was ignored by them. Little did they know that a pipeline of such intros needed to be created, because some intros were going to actually lead to investment, and some not. They burnt their energies in pursuing one person prematurely, instead of drafting a deck (articulation of our vision, mission and summary) that I approve of, to then email to many such investors and then picking and choosing from there, one at a time - such that, after the best among them says no, we proceed to the second best, not before. The expression of this observation is more than meets the eye. It is mostly to convey that, if I say something, and if you agree, that is not enough said. Do it, in time you indicate thereafter. Stick to it. DON'T WAIVER. This is very important for the success of our relationship.
"I have one message founders. Pay a lot of attention on your co worker's mental health and growth. If they
are not geniuses, make them so. If you have a loyal worker, work as hard as it takes to make him the person
you need. If you need a genius, make him that. However, often, you will need a humble hard working partenr
who is willing to take that leap into your whim"
- Nishchal
Our team and extended network has fair knowledge about what is going on in the web, and that makes our team
identify novelty really well.
As soon as we list you here or in our networking emails, we open some possibilities for your opportunity to
get discovered by those who open this website. It may lead to some solid connection for your idea/startup.
Many talented people open this webpage daily, and get led to developing relationships with our startups.
Also immediately after we list you, you settle somewhere in our minds. That means, in a day when we research
on matters of interest to us, we research for you too.
We are looking for Investors/ Mentors/ Advisors. Someone who could be the Catalyst to our Counter Culture.
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.
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