Don’t focus on funding, work on building valuable businesses: Kalaari Capital’s Vani Kola

The Indian startup ecosystem, much like its global counterparts, continues to grapple with a funding slowdown. However, efforts should be made towards building formidable and highly valuable businesses exhibiting strong fundamentals, said Vani Kola, Founder and Managing Director of Kalaari Capital.

“It’s important for a founder to recognise the value multiplier and work towards building on it. Nothing can replace concrete fundamentals,” she said during a fireside chat with Shradha Sharma, Founder and CEO, YourStory, at SheSparks 2024.

Kalaari Capital is an early-stage venture capital firm focused on consumer and technology startups, including Deconstruct, aastey, and Dream11.

Kola noted the importance of clarity of thought, especially with respect to understanding the "nitty-gritties" of the business. Entrepreneurs must have a clear business roadmap chalked out for the next three to five years, which could assure success over time, she said.

“When investors are investing in your startup, they want good returns. For that, founders must be able to see a clear path to generate that kind of return. Otherwise, there will be a massive mismatch between expectations and outcome,” the venture capitalist said, emphasising on the need to create value.

Founders can build successful companies by bootstrapping and maintaining 100% control, she added.

Entrepreneurship among women

Speaking of how women can effectively raise money and create strong companies, Kola acknowledged that women have been products of decades-long conditioning, but are taking steps to move forward by developing self awareness.

Kola recalled her engineering college days and said she was the first woman in her family to join a professional course, which got her parents worried. “This was more than 40 years ago when it was a different time. But like that, there are many instances of deep mental conditioning around us.”

When pitching to an investor, Kola urged women founders to maintain entitlement and dignity. She added that they must own their stories and be confident without undermining themselves.

“Make sure you take time to learn what you don’t know. I have had many women tell me that they don’t understand finances. You cannot lead a company without grasping financial terminologies,” the investor noted.

According to Kola, other crucial skillsets include the art of pitching an idea and having your own voice.

“Women often find it difficult to balance self assertiveness and bragging. Always maintain confidence and stop being apologetic all the time,” she added.