I have seen the struggle of an entrepreneur first hand when I launched my own business. Seeing/ feeling this struggle, I thought I should do my bit to give back to the community in as many ways I could. So, I started backing start-ups very early in life. I did my first investment at the age of 25 and had my first exit at the age of 28. Today I personally have a portfolio of close to 27 companies. I believe investing in start-ups is investing in young India. I will continue to do my bit towards this as my motivation.

2. What is your view on the future of India as a market

I don’t think there is any better place in the world to invest other than India right now. India’s economy is buzzing and not only that, our talent is young and hungry. This is an amazing combination which is going to create a recipe for long term success. Being in India today is akin to being in the USA during the “Roaring 20’s”. Today’s opportunity is once in 3-4 generations.

3. Help describe your investment thesis and ideas you would like to back

Initially I was very Consumer/ D2C focused. But today, after looking at a few thousand companies over the past few years, I am completely sector agnostic. I am currently looking at companies which don’t need physical supply chains to scale. In today’s digitally driven world, I believe supply chains are too risky especially with what we saw happen during the pandemic and even currently what is happening with supply chain unpredictability in China. So, I am focusing on sectors such as SaaS, Fin-Tech, Travel-Tech, Creator Economy and Gaming.

4. What are your 5 key learnings from your experience as a venture investor

Patience.

Rome was not built in a day. No company is built overnight and if you want real multi-baggers, it’s great to hold on as much as possible, so you can capture the maximum upside.

Conviction.

Finding amazing companies is very hard to come by. The moment you see the opportunity it is important to invest in a way that you show conviction in the company. Not to invest token amounts just to be part of the journey. But to invest a substantial amount to show your belief in the idea and belief in yourself trusting an idea.

Investing is not a punt.

I have met many people along the way, who always tell me to “take a punt”. But honestly, I am not looking at investing from that lens. I want to invest in something that is truly going to change something and not gamble away my capital. Investing is taking an educated decision and not a “punt”.

Knowing when to fold your cards.

Sometimes you come across a company that has given you 20X or more return in a short amount of time. It’s harder to know when to sell than to know when to buy. Many times, people want to hold on to get that 40-50X. And holding on might be risky as exits are never guaranteed. Its always good to exit when you can. As they say, “Don’t go wash your face when Laxmi comes to your door.”.

Start investing as early as possible.

The sooner you start, the earlier you will make your mistakes. Time is the most important asset to any investor. The more time you have, the more time you have to compound your capital. So, start early.

5. How do you support your portfolio companies

Usually what I do post investing is sit with the founder and ask them for a “Wish-List”. The “Wish-List” can be anywhere from introductions to certain people/ mentors, access to more business avenues or even access to more capital. Once I have that “Wish-List”, I sit with them and action out a plan as to how I can help them achieve this Wish-list. For example, I sit on a few investment committees with RIIDL at Somaiya Vidyavihar University. One of the companies we have in the portfolio from 100X is “Pocketly”. Pocketly had asked us to connect them to someone high up in the banking industry for guidance, so we connected him to the Ex-RBI governor to see how he could help. So, there are multiple ways we can help a company in the portfolio. Basically, help in any way they need and only when they need. I don’t get overly involved in the business once I invest. Once I invest, I have full faith in the founder and let them run their ship as they know their business the best. I am around whenever they need me.

About Siddharth Somaiya:

Siddharth Somaiya is an Angel Investor from Mumbai. Prominent investment areas are Edu-Tech, Fin-Tech, Health-Tech and has invested in Start-Ups like Pocketly & Beardo.

He sits on Investment Committee with the Incubator Seed Management Committee under Govt. of India Start Up India Seed Fund Scheme. And Investment Committee for RIIDL, Somaiya Vidyavihar for National Initiative for Developing and Harnessing Innovation Fund under the Govt. of India.

He also sits on the Academic Council of Somaiya School of Design and Governing Council for Somaiya Sports Academy. All of these institutions under Somaiya Vidyavihar University, Somaiya Trust.