40 UNDER 40

Brightest young leaders who changed the course of  businesses in India

- RUKMINI RAO

WHAT NOT TO DO IN A START-UP

In light of recent governance mishaps, investors advise founders on what all to avoid in their start-up journey.

• Raising funds: Do not keep fund-raising under wraps. Be decisive: either in or out. Testing the market is a fallacy.

• Cash management: Cash in bank is great but don’t fail to spend wisely. Don’t spend without a solid product market fit. Once you have that, don’t hesitate to spend.

• Growth strategy: Strategy is also about what you choose to not do. Having a strategy but not following it, while being overly rigid about it, defeats the purpose.

• Dealing with investors: Avoid two things—keeping investors in the dark and following every directive from them. Remember, you’re running the company. While it’s crucial to listen to their advice, ultimately, it’s your company, and you call the shots.

DEV KHARE Partner, Lightspeed Ventures India

• Raising funds: Don’t dive straight into numbers. Take time to introduce yourself and explain why you’re the right team for the opportunity.