FAQ's Start Up
Inflection point ventures is a sub-initiative of CXO Genie. Given the interest expressed by CXO’s in wanting to engage and encourage entrepreneurs, CXO Genie decided to provide a customized platform to do just that and more. A group of very active and enthusiastic CXO Genie members decided to come together and thus came into being, Inflection Point Ventures (IP Ventures). This sub-group also forms the core team which carries out initial assessment of recommended start-ups. It is an independent forum with over 200 CXO Genie members & HNIs, aiming to not only connect start-ups with serious investors who mean business, but also provide mentorship in critical business aspects. This platform aims to leverage and apply the distributed knowledge of the members, in a collective manner, to a given investment opportunity without the need of the intermediaries in deal sourcing, evaluating and investing in Start-ups. It also allows a new investor to start with a small investment, while still making a meaningful value proposition for the Start-up, with combined funding from various members.
Started in 2013, CXO Genie is a platform for CXO’s (CFOs, CHROs, CSCOs, CEO’s etc), that aims to solve real life problems being faced by its members, across industries and related to their line of work. It is enabled through a mobile based platform (Both IOS and Android) that connects member CFOs on a real-time basis and typically is able to solve a given challenge within 15 minutes of being posted. Today it enables CFOs to take decisions at an extraordinary speed that has not been possible earlier, making use of over 5000 yearsof combined relevant professional experience.
1. Diverse group of CXO Genies & HNIs who bring in, not only financial but also market related, technology perspectives to you and help your business gear up for growth.
a. Opportunity to do a B2B sales with companies represented by the members (1000+ companies on the network).
b. IP Ventures team can also advise the start-up in various critical areas such as legal, technology,forecasting etc, giving them dedicated time and guidance on a regular basis.
2. Network of CXO across functions and Geography, that carry a wealth of experience and are available to help/mentor and guide Start-ups.
3. You will receive a comprehensive feedback report, post the webinar giving you an insight of how investors have perceived your business proposal and the team’s capabilities.
4. Handholding till Series A as required by the Start-up.
5. One SPOC identified by IP Ventures for interaction with the Start-up, thereby significantly reducing the admin work of Start-up in dealing with multiple individual Angel investors.
6. Funding IP ventures looks to fund upto to 2 cr for a given Start-up
Given the life cycle of a start-up as depicted in the picture, IP Ventures takes up funding for early stage start-ups which have successfully cleared the proof of concept stage and are anywhere between Validation and Build Stage, i.e pre-seed and seed funding (prior to Series A). We prefer start-ups with pre-money valuation of less than INR 50 crores. Minimum ticket size investment is finalized on a case to case basis. (But greater than Rs. 2.5 Lakhs per member).
There are various ways in which IP Ventures can invest with you
a. IP Ventures (Designated lead Member) will negotiate common terms and conditions of behalf of the other members, while there will be independent SHAs and SSA signed with investors.
b. IP Ventures can pool in funds and invest with the start-up, in the form of an LLP maintained by the startup.
We intend to bring the expertise that is usually provided at the level of VC/PE stage to an early stage company.
In terms of guiding the Start-up, and taking interest in the way it is moving, we will “act” as a large fund with the ability to guide and help in the area requested by the Start-up. . However, we do not seek to interfere in decision making of the start-up.
a. The start-up being considered for investment needs to be recommended to the forum, by an existing CXO Genie member or IP Venture investor, who knows the founders personally and can vouch for their commitment to the business.
b. The start-up submits their pitch and an IP Venture self-evaluation form elaborating details of the problem statement and solution that the business idea aims to provide.
c. The core team of IP Ventures evaluates the pitch, carries out an internal discussion on the viability of the business idea and shortlists the most promising of the lot.
d. The shortlisted start-up is invited to present their business case to a larger audience, via webinar. This medium provides the ability for start-ups to reach a wide network, and HNIs the flexibility to login from anywhere across the Globe.
Please be informed, that we will not be able to share the details of the audience with the start-ups at this stage.
e. You will be assigned a lead member and a lead analyst who will work with you in taking this forward.
f. Basis the interest generated post the webinar, we will release a comprehensive feedback report from the participants covering various aspects of the pitch, team presenting and Q&A session.
g. The Start-up may be invited for B2B deals directly by CXOs of various companies and/or a second round of evaluation by IP Ventures, this time on the financials and growth forecast. If successful, any of the mode of investment mentioned in point 2 and 3 above are then put into motion.
h. The lead member will guide you and connect you with investors, carry out collective negotiations, and close
out on documentation.
Yes, we do charge a nominal amount to cover the administrative and other evaluation related costs. This is a mutually agreed upon % of total amount raised via IP Ventures including but not limited to, various B2B deals that may be signed.
Terms and conditions of the consultancy, dedicated hours etc would be mutually discussed and finalized on case to case basis.
Depending on the existing shareholder structure and the amount of investment done by IP Ventures, we will look to help the start-up grow, and help become robust and stable enough to seek Series A funding and so forth.
IP Ventures also supports in introducing and recommending the start-up to Venture Capitalists from their
network, post which individuals may choose to exit on a case to case basis.
As individual investor, they will have the right to be able to sell or buy shares as per their own discretion, at any given point in time.
Please note that IP Ventures does not take the responsibility of exit of any of the individual investors whether individually or collectively.
A SPOC is assigned to the start-up purely for the purpose of ease of negotiations and communication, wherein the start-up will need to deal with one representative only, instead of all investors individually. However, IP Ventures provides the flexibility to individual investors to reach out to the start-up directly, if they wish to do so.
The most important factor to keep in mind is that the level of transparency both the parties maintain, will directly
influence the level of trust and building of strong enduring relationships, right from the beginning. The Start-ups obligations are divided into two stages:
I. Pre investment stage:
• It is expected that the start-up’s founders behave in a professional manner through-out. Please be informed of the audience that you are presenting to and dealing with. The CXOs and HNIs come with far reaching influence across industries and geographies.
• Founders are expected to cooperate with the lead member and lead analyst during the due diligence phase and provide with required documents being sought, in time.
• The terms and conditions negotiated are intended to cover & protect both the parties interests and concerns in a mutually agreeable manner.
• In case the investment proposal does not go through, the Start-up should have the maturity to accept the feedback.
II. Post Investment stage:
• Once the SHAs and SSAs are signed and the funds have been received, the Start-up needs to maintain timely communication of business metrics etc.
• Any major changes in the business model or existing shareholding structure has to be discussed upfront and communicated well in advance with the IP ventures SPOC or investors.
• While we do not intend to interfere with decision making, the Start-up founders need to ensure inclusion of IP Ventures in critical discussions rather than be informed of such decisions by fiat, thereby avoiding surprises or disturbing trust built over time.
You can write to email@example.com with the following details, and we will get in touch with you.
1. Start-up’s Name, Industry and date of inception.
2. Start-up Concept: One liner about what your Start-up does.
3. Founders’ Full Name and Linkedin URL
4. Founders’ Contact details- Email address and mobile number
5. Name of the person, who referred you to IP Ventures, along with Designation and Company.
6. Expression of interest: A brief on the areas that you need IP Ventures to support you on, be it funding,
B2B deals or mentorships or otherwise.