1337 Venture’s Bikesh Lakhmichand shares his insights on startup challenges, from securing investments to attracting the right talent
Bikesh Lakhmichand has always been fascinated with technology and digital disruption. He got his first exposure to the startup world while developing training programmes for iOS and Android app developers with his company iTrain, which he started over a decade ago.
“At the time, I met many app developers leaving their jobs and starting their own companies to embark on interesting projects. I thought it was an interesting space, so in 2012 I started an early-stage venture capital firm 1337 Ventures,” he shares.
“Our objective is to create a programme that identifies and invests in the best ideas. We want to create a vibrant ecosystem with successful entrepreneurs who perhaps, one day, may want to be angel investors and invest in new startups themselves.”
Here, the Gen.T Tribe member shares with us insights on Southeast Asia's startup landscape and why it is an excellent time to raise funds despite the gloomy economic conditions.
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How has the current economic situation impacted venture capitalists’ appetite to invest in startups?
Bikesh Lakhmichand (BL): The [economic] situation today is not as bad as people make it out to be. Though a so-called “funding winter” is happening now, this has not dampened the spirit of investors.
Investors are also being more cautious when selecting startups they want to invest in. They are less likely to be influenced by trends or the fear of missing out on a good deal. Many of them want to make deals they otherwise would not have considered. They want to ensure they've identified the best startups to invest in and get their money's worth.
Fundraising is generally challenging, especially in a country like Malaysia, which has few active venture capitalists. But if you’re solving an issue that matters and can [clearly] articulate [your value proposition], then getting investors interested won't be too difficult.
Do you have any advice for new startups looking to make their mark in the world?
BL: Any startup working to solve a problem needs to ensure they are solving a problem that the market is yearning for. Ask yourself if the problem you are solving is big enough in the market you are targeting or whether it is something that is experienced by multiple markets.
Take your time to ensure product-market fit. This means understanding if there is market demand for what you want to sell and people who are willing to pay for it. Focus on getting that right and once you do, you can start to grow your business rapidly.
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