Back

Havish Gupta

Figuring Out • 12m

Why does even a 1000cr market isn't enough for a VC So most businesses generate maximum Profit Margin of 20%. That on a ₹1000cr ($150 M) is ₹200cr which is enough for an founder to retire. But if you think from a VC's point of view, the max valuation a ₹1,000cr revenue company can get is ₹10,000cr ($1.5 B) which is aldredy a 10 times revenue multiple. Now $1.5B valuation may look great but for a VC who owns about 10% stake, it's just $150 M. And also what we have considered is that 1) the Startup managed to get an 100% market share 2) A 10 times Revenue Multiple is considered (which won't be more than 3 today) 3) The founder diluted 10% equity which he may not irl (probobly) So in reality it doesn't make any sense. And also majority of the buisness ideas we think of are aldredy saturated or it's market size is much less than this. So probobly that's why your funding was rejected. What do you think?

21 Replies
8
22
Replies (21)

More like this

Recommendations from Medial

Havish Gupta

Figuring Out • 9m

Zepto just crossed 1000cr in Annualized Ad Revenue! For comparison, Blinkit's annualised revenue based on most recent numbers is 4,800 cr and Zepto is doing 20% of it through just through ads itself. They have also partnered with Park+ to deliver c

See More
Reply
5
Image Description
Image Description

Havish Gupta

Figuring Out • 1y

If you think that all the telecom companies were closed due to Jio, So you are wrong! So untill 2002, companies didn't had to pay any fees in India. But in 2002, gov said that now they will have to pay licence fees as well as 8-12% of all revenue.

See More
8 Replies
1
18
Image Description
Image Description

SUMIT DVIVEDI

Learner • 1y

Which topic is considered one of the most challenging in DSA?

4 Replies
5

ShipWithRathor

habitide.in Minimal ... • 4d

How do you see this progress just two apps without single $ marketing ? and generating around 150$ in revenue so far... Is it a sign people are loving my apps ?

Reply
1
Image Description
Image Description

Aarihant Aaryan

Prev- Founder & CEO ... • 11m

Many assume most of the small businesses in India don't make money, which is true as 30% of Indian SMBs don't. But there is an interesting trend, that has shaped in the last 12 months. Indian business ecosystem has added "500k" businesses to the 1

See More
3 Replies
5
15
Image Description
Image Description

Ravi Handa

Early Retiree | Fina... • 1y

Indian company reaches $150 million annual recurring revenue in 2 years. 100M+ is from US alone. Remember - earning 1$ is lot easier than earning 1₹. Indians don’t pay.

4 Replies
11
Image Description

VCGuy

Believe me, it’s not... • 1y

Building SaaS from India for the world - Rocketlane raises a $24 M Series B. ➡️Total Funding: $45 M (Seed at $3 M, Series A at $18 M) ⏫Lead investors: 8VC, Matrix Partners and Nexus VP. In recent years, many Indian startups are building SaaS compan

See More
1 Reply
2
10

Om Raut

"Entrepreneurial lea... • 1y

🔥Which of the following stocks is considered the most overvalued in India currently ?? 🟥Vote Now ‼️🔥

Reply
1
3

Download the medial app to read full posts, comements and news.