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Nimesh Pinnamaneni
Making synthetic DNA... • 7d
🚨 The magic number: ₹800 Cr ⸻ VCs invest in businesses that can be big enough to return their entire fund. To get VCs interested, your startup must at least have the potential to reach ₹800 Cr+ in annual revenue or ₹8,000 Cr+ in market cap (assuming a 10x multiple). Don’t worry if it will take time to get there. They account for that. ⸻ 💡 The Simple Formula: A × B × C ≥ ₹800 Cr Where: A = How many things you can sell (market size or customer base) B = How much you sell it for (price per unit) C = Your gross margin (profit after direct costs) ⸻ ✅ Example 1: B2B SaaS for Labs You’re building software for diagnostic labs: A = 10,000 labs B = ₹1,00,000 per year (₹8,300/month) C = 85% gross margin 👉 10,000 × ₹1,00,000 × 0.85 = ₹850 Cr ✅ VC-fundable: Big market, recurring revenue, high margin. ⸻ ❌ Example 2: Boutique Coffee Chain You’re opening premium cafes in Indian metros: A = 50 outlets B = ₹300 average bill - Customers/day = 1000 - Annual Revenue = ₹10.9 Cr per outlet → ₹547.5 Cr total C = 30% margin 👉 ₹547.5 Cr × 0.3 = ₹164.2 Cr ❌ Not VC-fundable: Great business, but not scalable enough for VC. ⸻ ✅ Example 3: Molecular Diagnostics You’re building a rapid sequencing diagnostics platform: A = 5,000 clinics B = ₹8,300 per test - Tests/year = 1,000 per clinic C = 60% margin 👉 5,000 × 1,000 × ₹8,300 × 0.6 = ₹2,490 Cr ✅ Highly VC-fundable: High TAM, strong margins, scalable diagnostics. ⸻ 🧠 TL;DR for Founders Before chasing VC money, ask: 🔍 Can this idea become a ₹1,000 Cr+ business? 📊 Do my unit economics work at scale? ⚔️ Am I swinging big enough? If you’re under that bar — just pick the right funding model: 💸 Angel, 💼 PE, 🧪 Grants, or 🛠️ Bootstrapping. ⸻ Run the math on your startup idea👇
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