A Committed Investor Who Believes In Standing By His investment As an early-stage investor, Shantanu Deshpande, CEO and co-founder, Bombay Shaving Company seeks post-revenue companies with strong founding teams operating in large markets

Trust is one of the most important factors in investor-founder relationships, says Shantanu Deshpande, CEO and co-founder, Bombay Shaving Company.

Also, as an investor, he uses his own methods to define valuations. However, once he has made a commitment to a startup, he would stand by his investment and will not renegotiate due to external factors or market conditions.

"We believe that this approach is important for several reasons. First, it shows our commitment to the startup and its team. We are not just looking for a quick profit, but we want to see the startup succeed in the long term. Second, it helps to build trust with the startup team. They know that we are in it for the long haul and that we are not going to abandon them if things get tough. Finally, it creates a more stable environment for the startup to grow," he says.

As an early-stage investor, Deshpande seeks post-revenue companies with strong founding teams operating in large markets. During times of crisis, he believes resilient founders can pivot their models and innovate to sustain and emerge as winners. "Our sector-agnostic approach allows us to identify potential winners in challenging situations," he says.

He is also not conserving cash to invest only in the best companies. In fact, he is actively seeking investment opportunities in the early stages. "Our approach is more bullish than bearish, as we believe the current phase is temporary and provides a chance to invest at attractive valuations. Of course, there are also some risks associated, however, I believe that the potential rewards outweigh the risks," he says.

He also believes that companies that are likely to get invested first are those that show signs of nimbleness and agility. "These companies are able to quickly adapt to change, identify new opportunities, and execute on their plans. They are also able to cut inefficiencies without compromising on their core business," he says.

Deshpande's funding outlook for the coming year is optimistic. "Sequoia's decision recently to split into three different funds to facilitate conflict-free investments in the Indian market indicates a positive investment scenario in the months ahead. We are particularly interested in investing in promising deep tech companies and hold a bullish outlook on direct-to-consumer (D2C) businesses as well," he says.

FACTSHEET

• No. of startups invested in: Personally as an angel in over 25 companies and committed to 7 startups through the fund
• No. of exits: NA
• Focus sectors: Sector-agnostic
• Fund Size: 25 Crores
• Ticket Size: 50L-2Cr