Investment in startup has more growth potential than established firm: Angel Investor

Rolf Schromgens, Co-founder & Ex-CEO of Trivago, said, “I would personally prefer investing in startups as the scope of growth is much more compared to established companies”

Investing in future innovations offered by startups is better and more sustainable rather than in the bigger established companies, an expert behind a well-known travel aggregator said here today at the fifth edition of Seeding Kerala 2020, organised by Kerala Startup Mission (KSUM).

Rolf Schromgens, Co-founder & Ex-CEO of Trivago, said, “I would personally prefer investing in startups as the scope of growth is much more compared to established companies.”

The day witnessed investors speaking about the scope, challenges and expectations in the startup ecosystem.

At the session titled ‘Beyond the Money: Creating value through support services,’ speakers pointed out the importance of having sustainability of startups through various mentorship programmes and guidance.

Vinit Bansali, Vice President, Orion Ventures Partner, said, “We have a mentorship programme called ‘Misfit’ helping the startups to understand the areas to evolve. The idea is to provide them a platform beyond funding. Understand their product and help them achieve their vision!”

Echoing similar sentiments, Rolf said, “It is not just the money that flows into the company but also the mindset of the investor. The founders and investors need to have an aligned vision or else it will be difficult to sustain the business.”

From an investment point of view, investors spoke about investing in healthcare and space sectors and their potential.

Vikas Kuthiala, an angel investor and founder of Terumo Penpol who has invested in healthcare startups, said, “Instant returns are not possible in sectors like healthcare. The gestation period is longer compared to software but the sector has great potential and needs to be explored.”

At a panel discussion on ‘Investing in the Final Frontier – Exploring opportunities in space technology’, the experts agreed that niche sectors have huge market potentials.

Mahesh Murthy, Founder & Director of Exseed Space, pointed out that 35 percent of the world satellite is from India, yet investment in the space sector is just about three per cent.

Ravikanth Reddy, of Mumbai Angels, argued that space tech has the multitude of being a business enabler and can be aligned with various segments.

The day also had a panel discussion on ‘Creating impact with Harware’ and ‘Financing Fintech Innovation’.

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