CEO Blueprint : Anupam Mittal's Masterclass on How to Find Gap in the Market?
Executive Summary
A Think School conversation with Anupam Mittal, founder of Shaadi.com and an angel investor, on whether to raise capital, how he evaluates founders and how to build business sense. Sponsor: Odoo e-sign (named ODO/ODU in the captions). PARTIAL COVERAGE: the episode runs about 105 minutes and the available caption text is cut off, so this summary covers roughly the first half (the funding question, founder evaluation and early selling) and not later topics such as China and India's growth sectors listed in the preview. Return figures are Mittal's own explanations and are unverified. This is a summary of his views, not financial advice.
Key Takeaways
Raising capital is a life choice
Mittal says the question of whether to raise capital is like deciding whether to get married and depends on what you want out of life.
The obligation to investors
He says equity capital is expensive, banks and investors expect at least about 30 percent a year, and early-stage investors like him expect about 50 percent.
What 30 percent IRR means
He explains that 30 percent internal rate of return compounds, so five years gives more than 2.5 times the money, and that this needs strong growth and a team to match.
Funding is not the only way
He says capital is needed in some form, large or small, depending on the industry, and raising it is not the only way to build a business.
Right to play
He says a founder needs a non-obvious truth about the space that others are blind to, which is what gives them the right to play.
Acquaintance calling
The host describes a college event strategy where students recommended friends so that calls became warm instead of cold.
Start selling early
Mittal says he began at 13 by renting out books, then built a sports club at 16, and that every early business involved some kind of selling, which builds negotiation skill, while early finance work builds a macro view.
The Conversation Breakdown
Raising capital is a life choice
⏱ Untimed topicMittal says the question of whether to raise capital is like deciding whether to get married and depends on what you want out of life.
The obligation to investors
⏱ Untimed topicHe says equity capital is expensive, banks and investors expect at least about 30 percent a year, and early-stage investors like him expect about 50 percent.
What 30 percent IRR means
⏱ Untimed topicHe explains that 30 percent internal rate of return compounds, so five years gives more than 2.5 times the money, and that this needs strong growth and a team to match.
Funding is not the only way
⏱ Untimed topicHe says capital is needed in some form, large or small, depending on the industry, and raising it is not the only way to build a business.
Right to play
⏱ Untimed topicHe says a founder needs a non-obvious truth about the space that others are blind to, which is what gives them the right to play.
Acquaintance calling
⏱ Untimed topicThe host describes a college event strategy where students recommended friends so that calls became warm instead of cold.
Start selling early
⏱ Untimed topicMittal says he began at 13 by renting out books, then built a sports club at 16, and that every early business involved some kind of selling, which builds negotiation skill, while early finance work builds a macro view.
Core Frameworks & Ideas
Life question first - Mittal's view
Decide what you want out of life before you decide to raise capital.
Right to play - Mittal's founder test
Name what you know about the space that others do not.
Make cold calls warm - the host's college example
Use a personal recommendation so outreach starts warm.
Actionable Next Steps
- ✓Write what you want from the next ten years before you decide on investors.
- ✓State in one sentence the non-obvious truth behind your idea.
- ✓Try one small selling task this week, such as asking a customer to buy.
- ✓Check the return figures with a financial professional or public sources.
Notable Quotes
“There are no templates in life, right?”
“what's giving you the right to play?”
“What do you want out of life?”
The One Thing to Remember
Mittal says deciding whether to raise capital is a question of what you want out of life, since investor money brings obligations for about ten years.