The pandemic last year hasn't dampened the entrepreneurial spirit. In fact, the acceleration of digital adoption has unleashed newer business models and expanded the market opportunity for startups. There is a massive digital transformation underpinning monumental changes in several industries. At Kalaari, we have seen a higher momentum of transformative ideas and undaunted founders with humongous aspirations. Stronger follow-on financing from growth investors is further accelerating experimentation that is essential for innovation. In the first half of this year, our portfolio companies have raised more than $265M in follow-on funding.

In other good news, this has been a successful year for exits and fund returns, living up to the faith and confidence our LP's have in us. 

While the future seems exciting, I often wonder: How can we make it more inclusive? How do we ensure the expansion of the pool of entrepreneurs and reduce bias in access to funding? How do we encourage ideas and solutions that serve different segments of society?

I get frequently asked whether I personally face challenges as a woman managing a venture capital firm, whether there is a bias in funding women startup founders. My own experiences as an entrepreneur and venture capitalist leave no doubt; it is much more difficult for female founders. The truth is illustrated in the numbers: number of female CEOs, founders, investors etc.

Various factors contribute to the low participation of women at the top. Globally, research has shown that the presence of female leaders results in higher profitability, improved motivation, and a collaborative environment. It also fosters a culture of honesty, transparency, and learning. The presence of women in decision making breeds positive outcomes.

So, how do we create a systemic change to enable more women to have access and mentorship to achieve their full potential? I have been reflecting on this for some time now. The extreme sport of entrepreneurship highlights a discomforting situation. Among Indian companies that have received startup funding, only 6% have women founders. And only 1.4% have women founder-CEOs.

How do we action change? I recognise the challenges faced by female founders and am deeply committed to the cause of promoting women entrepreneurs. Over this year, Kalaari has planned several initiatives to make our funding access more diverse and inclusive, including a program to mentor female founders.

Awareness is step one; action is step two. Driving change and delivering results is the final reward.

Your suggestions, support, and encouragement matter to us.

Regards,


Vani Kola
Managing Director
Kalaari Capital

• Chara is developing new-age motors using Switched Reluctance (SRM) technology.
• It is poised to disrupt the $100B Global Induction Motor market, which is growing at a CAGR of 8%.
• It aims to facilitate the global transition from a hydro-carbon based energy economy to a cleaner, electron-based economy.

• Portl is building a revolutionary smart-device that delivers personalised training and AI driven workout regimes.
• It is creating a new space for itself in India's fitness market, which currently stands at $18B, and is being driven rapidly by digital fitness segment.
• It aspires to shape India's health and fitness journey by combining  hardware and software solutions that leverage advanced computer vision and 3D technology.

DREAM11 | Harsh 
With Kalaari since Series A (2015)

• Building a startup is like playing a team sport: Creating a successful team is about building the right team chemistry and culture, which trumps all other factors.
• Choose your investors carefully: Understand the person who will join your board and see if you can build a long-term relationship with them.
• Focus on solving one main problem: Become a master of this one problem, and then slowly build out additional features.
• Always be authentic: Have the humility, integrity and maturity that's required to have difficult conversations.

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CURE.FIT | Mukesh 
With Kalaari since Series A (2016)

• Be obsessed with customer delight: Keeping your ear to the ground and listening to the customers can pay disproportionate dividends. It has to be baked in as an integral part of a firm's culture.
• Broaden your horizon: Expose yourself to a lot of context and do not jump to 'assumptional' conclusions.
• Follow the maxim of strong opinions, loosely held: Have strong conviction, but if data disagrees, remember to let go and reinvent yourself.

In his book ‘Deep Work’, Cal Newport talks about the one skill that he believes is becoming increasingly valuable (and rare) in today’s world – the ability to do “deep work”: activities and tasks performed in a state of distraction-free concentration by pushing one’s cognitive capabilities to the limit. 

Here are some key takeaways:

• Schedule periods of productive meditation: Physical occupation with mental relaxation like jogging, driving etc., and focus your attention on a problem.
• Adopt a shutdown ritual: Make sure that there is nothing urgent left to do, and organise your tasks to allow your mind to take a break and recharge.
• Contain procrastination cravings: Activities like watching YouTube videos while brushing atrophy your willpower and make it harder to engage in deep work. 

Harish Sharma
Fellow
Kalaari Capital

 

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