Right for you?
Solidarity helps its clients invest in start- ups through angel or venture rounds and and then works closely with entrepreneurs our clients have funded, on strategic, financial and operational issues to assist in faster scaling.
Investing in starts ups and being an “angel investor” seems to be the latest fad in town. We encourage our clients to keep in mind that investing in start-ups should not be seen as an avenue for making outsized returns. While high returns are possible, one needs to be aware that start-ups have a high mortality rate and it is far more difficult to identify winners. Moreover, investments could be illiquid for long periods of time (up to 10 years).
If investment criteria is purely commercial, clients should look at listed equities where returns are likely to be more stable and with high access to liquidity. Hence, we recommend that clients consider investing seriously as an Angel or VC only once you have built over 10 Cr of Investible Assets (other than a house); and that these investments be not more than 5% of your portfolio.
Our client’s motives for investing in start-ups are not only commercial
Together, we want to help create organizations whose products or services will contribute to making the world a better place. By funding them and providing them support along their journey, we believe we are making a difference. This is reflected in the choice of companies we have funded and in our engagement approach.
It’s a great form of learning – The tuition fees are steep, but the mind becomes quite sharp when you are forced to put your money where your mouth is. Understanding industry issues and meeting the challenges of scaling at the micro level also make us a better investor in the listed space.
Opportunity to interact with and mentor young professionals
Having said that, we track financial returns and performance rigorously.