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"Capital is not a measure of success—it's a catalyst. The real success lies in creating sustainable growth, generating healthy cash flows, and building a legacy that stands the test of time." |
1. What inspired you to start Kansaltancy Ventures, and how has your vision evolved as the company expanded its global footprint?
Ans. Having worked in Brand Capital, which is the venture arm of the Times of India Group, I was part of the Team which invested Rs 100 crores in 9 companies. Over the years, I got great experience and insights into investing in an asset class which is Startup investing and SME investing. I saw a significant gap in the capital availability for Startups and SME’s and in 2016, I started Kansaltancy Vetures.
We provide Venture capital and Capital funding from Family offices, Venture capital Funds and Angel networks. We also enable SME’s to get listed on the SME Emerge platform of the stock exchange by coming out with an IPO. We have evolved from being a provider of capital only to also enabling Startups and SME’s become funding-ready by way of completing the documentation and hand-holding them to deal with investors including structuring of the transaction and negotiations.
In the last 9 years, we have helped over 5000 companies achieve their aims including raising millions of dollars of capital funding
2. What are some emerging trends in the global funding ecosystem, and how can startups position themselves to attract the right investors?
Ans. The biggest emerging trend in the global Startup ecosystem is to have the least number of employees, have a lean startup and if you look at the top companies like Amazon and Meta - between all of them, they have let go of thousands of employees. So the buzzword is automation and within automation - Artificial Intelligence and Machine Learning are very strong.
2. What are some emerging trends in the global funding ecosystem, and how can startups position themselves to attract the right investors?
Ans. The biggest emerging trend in the global Startup ecosystem is to have the least number of employees, have a lean startup and if you look at the top companies like Amazon and Meta - between all of them, they have let go of thousands of employees. So the buzzword is automation and within automation - Artificial Intelligence and Machine Learning are very strong.
Also with automation, we are talking about faster data storage, efficient data analysis and accurate outcomes. Indeed, even the traditional banks and multinational companies have retrenched and let go of a huge number of employees by automating processes and this shows that a company which doesn't incorporate Technology in its business plan will find it very hard to compete with traditional companies and well-funded new age Startups.
Startups also have to be mindful that Technology is very fickle and changes very fast, so they have to keep on adapting and generate Returns fast by deploying the cutting edge Technology which is seeing good adoption by the consumers. Startups also have to catch hold of the latest trends like the hyper growth of the Quick commerce market in India where a lot of hot money started changing the sector, which is very natural given that it is not easy for a Startup to make a dent in the hyper competitive markets of today.
3. What are the key factors you assess when determining if a company is truly ready to seek external funding?
Ans. In the world of Startup investing, because of the media Hype and the cult status given to Startup Founders and to Startups which achieve hyper-valuations, it is not uncommon to find most of the new Founders of Startups asking for steep valuations and a large amount of money even at early stages.
3. What are the key factors you assess when determining if a company is truly ready to seek external funding?
Ans. In the world of Startup investing, because of the media Hype and the cult status given to Startup Founders and to Startups which achieve hyper-valuations, it is not uncommon to find most of the new Founders of Startups asking for steep valuations and a large amount of money even at early stages.
For us as a venture capital company, we are very focussed into understanding the use of funds, how much funds are the company asking for and till how many months will that last and how will those funds be used - operating expenses or fixed expenses, working capital or other such requirements. Working Capital should be taken from a bank because it is cheaper than any equity financing or venture capital.
Operating profitability and the bottom line which means the net profitability - those are the matrix of unit economics which matter and which determine for us how much funding can be optimally provided to a Startup
4. How do you help startups and mid-sized companies identify and capitalize on strategic partnerships, mergers, or acquisitions to fuel their growth?
Ans. Any founder who looks for funding initially always looks to give a minority share because he needs more capital in the future as well and which will mean that he will have to dilute his equity in the future rounds - so he doesn't want to end up with a very less equity share in the company.
4. How do you help startups and mid-sized companies identify and capitalize on strategic partnerships, mergers, or acquisitions to fuel their growth?
Ans. Any founder who looks for funding initially always looks to give a minority share because he needs more capital in the future as well and which will mean that he will have to dilute his equity in the future rounds - so he doesn't want to end up with a very less equity share in the company.
When the company becomes big, if you look at the largest companies like Amazon or Meta, the equity share holding of the Founder is usually between 10 to 20% - still they end up being the richest on the planet but there is a tribe of investors who believe in taking a majority share of the Startup and then growing it by controlling it fully.
They believe in this because they feel that having a control on the Board of Directors will make them avoid and manage things like siphoning of funds and mis-allocation of capital, like we hear Founders staying in 5 star hotels and buying luxury cars. In fact, there are Family offices who are an offshoot of a large corporate house and because of the synergies they find between their investments and the Business of the Corporate house, they like to take majority equity shares in Startups.
It also happens that once a Startup has plateaued out and is not getting funding, so they look for some kind of Merger and Acquisition arrangement like equity-swap or selling out to a larger rival or selling its majority holding at a discount to thwart the possibility of closure. We, at Kansaltancy Ventures, help Startups in deal making and Mergers and Acquisitions
5. With over 450 global investors in your ecosystem, how do you maintain and nurture these relationships to ensure they remain beneficial for both parties?
Ans. “Your Network is your NetWorth”, as the saying goes – making it vital to cultivate enduring relationships with investors. With nearly a decade in business, we are well-known among India’s active investors. Additionally, many prominent investors in Singapore, Dubai, the UK, and the US recognize us. How did we build these relationships? It’s simple: they respect us because they trust our expertise, our understanding of funding and investment dynamics, and the diligence required in managing capital. They believe in us because the startups and founders we back are dependable, and that trust naturally extends to us. They know startups introduced by us carry credibility.
5. With over 450 global investors in your ecosystem, how do you maintain and nurture these relationships to ensure they remain beneficial for both parties?
Ans. “Your Network is your NetWorth”, as the saying goes – making it vital to cultivate enduring relationships with investors. With nearly a decade in business, we are well-known among India’s active investors. Additionally, many prominent investors in Singapore, Dubai, the UK, and the US recognize us. How did we build these relationships? It’s simple: they respect us because they trust our expertise, our understanding of funding and investment dynamics, and the diligence required in managing capital. They believe in us because the startups and founders we back are dependable, and that trust naturally extends to us. They know startups introduced by us carry credibility.
Furthermore, our visibility comes from hosting events, my speaking engagements, and over 500 videos available across YouTube, Google, Spotify, and LinkedIn. We engage with investors through meaningful conversations about startups, industries, and nuanced details. That said, there’s no universal approach to relationship-building – some prefer in-depth technical discussions, others connect over leisure activities, travel, or casual settings, while a few value exchanges about books or financial insights.
The venture capital world, like life, is filled with diverse individuals. Ultimately, earning respect, demonstrating impactful work, and maintaining a strong digital presence ensure trust and credibility in the market.
6. How do you guide founders in balancing capital acquisition with long-term sustainability and operational efficiency?
Ans. This is a very good question. Capital costs a founder equity - the Founder is giving essentially a share in his company to get that capital. Now if that capital is not being used to achieve business success and valuation, then that capital is essentially very expensive because it is coming out of the share of the founder's equity.
6. How do you guide founders in balancing capital acquisition with long-term sustainability and operational efficiency?
Ans. This is a very good question. Capital costs a founder equity - the Founder is giving essentially a share in his company to get that capital. Now if that capital is not being used to achieve business success and valuation, then that capital is essentially very expensive because it is coming out of the share of the founder's equity.
The smartest founders raise capital but more than that, they look at all the critical parameters with which the markets and the investors judge their businesses - starting from revenue, the quality of the revenue, the revenue growth - coming down to managing your expenses, keeping a lean team, having cost Optimisation, to operating profits - coming down to achieving net profits.
In the business, more than these parameters what is truly important is to have free cash flows - Healthy cash flows - because at the end of the day, a business can only be sustainable and scalable and operate as a Going Concern for the longest time, if it is standing on its own feet and generating attractive returns for its stakeholders. and at the same time contributing meaningfully to the society, the country and the economy in which it operates.
My advice to Startup founders has always been to use external capital to shorten the time frame in which to achieve the scale and the objectives of the company and not to treat capital raised as a parameter of success - rather use each dollar very wisely.
7. What advice would you give to companies contemplating an IPO, and how do you evaluate whether it's the right move for them?
Ans. An IPO is the start of a journey that is often a culmination of a successful Startup or a SME - when a company lists on a stock exchange and comes out with an IPO, it presents itself to an entirely new set of investors coming from diverse backgrounds and having deep pockets. It also exposes the company to retail investors and investment groups.
7. What advice would you give to companies contemplating an IPO, and how do you evaluate whether it's the right move for them?
Ans. An IPO is the start of a journey that is often a culmination of a successful Startup or a SME - when a company lists on a stock exchange and comes out with an IPO, it presents itself to an entirely new set of investors coming from diverse backgrounds and having deep pockets. It also exposes the company to retail investors and investment groups.
Every Move of the Company is watched from the IPO onwards, there are research reports being put out on the company’s performance. So a new history and Legacy of the company starts building. The Company should think of these things before deciding whether to come out with an IPO or not.
One - it should have healthy growth, the company should be in a growing phase because the trading of the shares will be on going on and if the company is not delivering on growth and profits, then the shares will fall and if the company’s shares give losses to a large number of people, the market never forgets and the future of the company in terms of capital raising becomes difficult.
One - it should have healthy growth, the company should be in a growing phase because the trading of the shares will be on going on and if the company is not delivering on growth and profits, then the shares will fall and if the company’s shares give losses to a large number of people, the market never forgets and the future of the company in terms of capital raising becomes difficult.
Second - the company should try to achieve good profitability and should also be growing after the listing of the company.
Third - the company should create a professional Board of Directors by inducting people from relevant fields and specialists of the different departments of the company because a long term vision and experience are required for the company to grow while creating proper process and Systems to manage the growth.
The company should have a very good understanding of the rules and regulations of the Securities and Exchange Board of India (SEBI) and also the Stock Exchanges. The Company needs to tie up with an Anchor Investor who commits to the IPO of the company and hand holds it both in terms of managing the end to end process as well as underwriting the issue.
All the stages of the IPO -like Pre-IPO, Grey market, submission of DRHP and then RHP, then listing and post listing compliances are adhered to by us and our appointed merchant banker.
All the stages of the IPO -like Pre-IPO, Grey market, submission of DRHP and then RHP, then listing and post listing compliances are adhered to by us and our appointed merchant banker.
We are a trusted IPO advisor in the market having done more than 80 IPO’s and we are aligned with the biggest Anchor investor in the SME IPO market. Our Anchor investor is twice as big as the second person on the list and we fundamentally build the company structures and a wonderful Legacy of the company which is able to raise even larger capital at even higher valuations in the future
8. How does Kansaltancy Ventures tailor its approach for startups versus mid-sized companies with more established operations?
Ans. Startups are unique in the sense that they are generally set-up not very long back and they are coming to raise funds with the disruptive product or service - in that sense, the risk profile of such companies is quite high and a disciplined approach is needed to get the funding and to choose which one will go ahead and deliver outside Returns.
8. How does Kansaltancy Ventures tailor its approach for startups versus mid-sized companies with more established operations?
Ans. Startups are unique in the sense that they are generally set-up not very long back and they are coming to raise funds with the disruptive product or service - in that sense, the risk profile of such companies is quite high and a disciplined approach is needed to get the funding and to choose which one will go ahead and deliver outside Returns.
Small and Medium Enterprises (SME’s) on the other hand, are different because they are likely to be in more traditional businesses like manufacturing and typically doing a turnover which is in a range of a few 100 crores or maybe less or more - so the approach to fulfil the needs of Startups and SME’s is very different. For Startups, we create a Business plan, a Pitch deck and a Teaser and very importantly, a Financial Model with 5 year projections, so as to show the path which the Startup will take to achieve revenue growth and market share.
In the case of SME’s, how they are doing in terms of revenue, team size and profitability - those things are more important. How the product or service is doing in the market, how is the competition - those things are Ultra important.
In the case of SME’s, how they are doing in terms of revenue, team size and profitability - those things are more important. How the product or service is doing in the market, how is the competition - those things are Ultra important.
We generate venture capital and funding from Family offices or Angel networks for Startups but for SME’s, we guide them to get listed on the Indian SME IPO exchanges – SME IPO’s are doing very well and huge number of issues have hit the market successfully. SME’s in the phase of investment and making losses but still becoming big later on, get funded even at the loss-making stage. The valuation given at the SME IPO exchange is on the basis of their Net Profits – SME’s also enjoy a large number of schemes from the Government benefiting such companies in a variety of ways
9. If you could offer one piece of unconventional advice to aspiring entrepreneurs looking to secure funding, what would it be?
Ans. I would tell the Founders - Don't look for external funding! Go out, write Blogs, make Reels, Shorts and LinkedIn videos, attend events, shake hands, tell every investor you meet, every Business person you meet, what you are creating and tell it proudly and if somebody ask you “Are you looking for funding?”, tell them if we get funding it will be good for our Business but we can do without funding also - just that the time taken to build this will be longer but we have the capability to build it and we will borrow some money from here and there and later on take some loan from a Bank for an NBFC.
9. If you could offer one piece of unconventional advice to aspiring entrepreneurs looking to secure funding, what would it be?
Ans. I would tell the Founders - Don't look for external funding! Go out, write Blogs, make Reels, Shorts and LinkedIn videos, attend events, shake hands, tell every investor you meet, every Business person you meet, what you are creating and tell it proudly and if somebody ask you “Are you looking for funding?”, tell them if we get funding it will be good for our Business but we can do without funding also - just that the time taken to build this will be longer but we have the capability to build it and we will borrow some money from here and there and later on take some loan from a Bank for an NBFC.
So the unconventional thinking is that you proudly tell how much belief and faith you have in what you are building - make that as such a super proposition that any investor says I am writing a cheque to you right now - that is the kind of conviction, the Founder can show and definitely if such a Business proposition is there, which is so strong, it will definitely get funding - if not today, maybe one or two months down the line or three months down the line.
Bio :
I am Tushar Kansal - Founder/ CEO of Kansaltancy Ventures (https://www.Kansaltancy.com) - an accomplished professional, a "Thought Leader/ Influencer". Over the years, I have supported Companies & Investors in diverse sectors (90+ Recommendations on LinkedIn). I help by means of Venture Capital, SME/ Mainboard IPO. Debt, Consulting & Strategic Services, leveraging 450+ Investor/ Lender connects. The range of deals is USD 1-50 million. I contribute to a portfolio of 360+ Startups in 60+ countries with Loyal VC, the INSEAD-led Canadian VC Fund, as their Venture Advisor. An avid reader and a Hindi singer, I am a Speaker at Ivy League Institutions/ Corporates. My expert opinion is often sought by leading Channels/ Publications like CNN-News18, VCTV (Venture Capital Tv), Business World & TechThirsty. More than 500 talks of his including TedX are in the public domain - Check Google/ YouTube
I share my vision with the world via my Blog “Indus Churning” (https://www.IndusChurning.com). I have experience spanning multiple specialties from Venture Capital (Brand Capital), Big 4 Consulting (Deloitte & Touche), LSE-listed Sistema's India unit (Raised USD 2.5 billion for MTS India) to CFO of USD 325 billion Guggenheim Partners-owned company (DLI). I received an MBA in Finance from University of Delhi, B.Tech from "The Technological Institute of Textile & Sciences", affiliated to the “Textile Institute Manchester, UK” and part of the leading Industrial & Education house in India “The Birla Group” & Leadership studies from the Harvard Business School.
I am Tushar Kansal - Founder/ CEO of Kansaltancy Ventures (https://www.Kansaltancy.com) - an accomplished professional, a "Thought Leader/ Influencer". Over the years, I have supported Companies & Investors in diverse sectors (90+ Recommendations on LinkedIn). I help by means of Venture Capital, SME/ Mainboard IPO. Debt, Consulting & Strategic Services, leveraging 450+ Investor/ Lender connects. The range of deals is USD 1-50 million. I contribute to a portfolio of 360+ Startups in 60+ countries with Loyal VC, the INSEAD-led Canadian VC Fund, as their Venture Advisor. An avid reader and a Hindi singer, I am a Speaker at Ivy League Institutions/ Corporates. My expert opinion is often sought by leading Channels/ Publications like CNN-News18, VCTV (Venture Capital Tv), Business World & TechThirsty. More than 500 talks of his including TedX are in the public domain - Check Google/ YouTube
I share my vision with the world via my Blog “Indus Churning” (https://www.IndusChurning.com). I have experience spanning multiple specialties from Venture Capital (Brand Capital), Big 4 Consulting (Deloitte & Touche), LSE-listed Sistema's India unit (Raised USD 2.5 billion for MTS India) to CFO of USD 325 billion Guggenheim Partners-owned company (DLI). I received an MBA in Finance from University of Delhi, B.Tech from "The Technological Institute of Textile & Sciences", affiliated to the “Textile Institute Manchester, UK” and part of the leading Industrial & Education house in India “The Birla Group” & Leadership studies from the Harvard Business School.
Interviewed by : Shivam Sharma
Edited by : Shivam Sharma
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