Unicorn India Ventures: Why Early-Stage Investing is an Art, Not a Science
The world of Venture Capital is often described through spreadsheets, IRR (Internal Rate of Return), and rigorous financial modeling. But for Bhaskar Majumdar, the Founder and Managing Partner of Unicorn India Ventures, early-stage investing is far from a cold science. It is, as he puts it, an "Art." In a journey that has spanned roles as a senior media executive, a twice-exited entrepreneur, and now a leading VC, Majumdar believes that success in the startup battle comes down to one thing: the quality of the person sitting across the table.
Majumdar, an IIT Kharagpur alumnus, brings a unique perspective to the table. Having lived through the liberalization of India's media industry with Zee and Times of India, and having navigated the "pains of entrepreneurship" himself, he doesn't just look for profit margins—he looks for the fire in the founder's eyes. His award-winning book, "Everything Started as Nothing," serves as a manifesto for this belief: that every global giant, from Google to Flipkart, began as nothing more than a passionate idea in a small room.
Investing as an Art
Bhaskar Majumdar argues that early-stage investing cannot be reduced to data points. "Whatever the broad plan is, the plan will be thrown out of the window and new plans will come out," he notes. Therefore, the final call isn't about the pitch deck—it's about backing the entrepreneur's ability to reinvent themselves when the market shifts.
The Strategy: Betting on B2B and Digitization
While many VCs chase the next viral consumer app, Unicorn India Ventures has carved a distinct niche. They consciously avoid the "consumer internet" space, focusing instead on the invisible infrastructure of the modern economy. Their sweet spot? B2B technology, SaaS, supply chain, and logistics.
"We strongly believe in this whole digitization that is taking place globally, especially in India," Majumdar explains. "Every industry across sectors is being disrupted. We invest in businesses which are changing business processes using digitization."
This strategy has led them to back some of India's most promising startups, including Inc42, SmartCoin, and Open Bank. By focusing on essential business processes, they build a portfolio that is resilient to the whims of consumer trends.
When Should You Raise Funds?
For many first-time founders, fundraising is the ultimate goal. Majumdar offers a reality check. He believes that for a SaaS business, you shouldn't go in early just because you have an idea. Instead, focus on repeatability and quality.
Raising Institutional Capital: The Checklist
- Post-MVP: Your product must be functional and out in the market.
- Client Roster: Build a slew of 5–10 initial clients.
- Repeatability: Prove that you can win clients consistently, not just through luck.
- Metric Milestones: Broadly speaking, an MRR (Monthly Recurring Revenue) between $15,000 and $20,000 is a good signal for institutional interest.
He also warns founders not to get bogged down in "pencil sharpening" over a few percentage points of stake. "Take a call on the investor, not the stake. Good investors will never try to take so much of a company as to demotivate the entrepreneur," he advises.
The Hard Truths of Entrepreneurship
Majumdar is vocal about the "glamour trap" of modern entrepreneurship. In an era of Forbes success stories and overnight millionaires, many young folks enter the journey for the wrong reasons. His advice is uncompromising:
1. Burn the Bridge of Return
One of his most controversial yet vital lessons is the "no escape route" policy. "A lot of people tell me I'll try three years in a startup and if it fails, I'll go back to a job. If you have this mindset, you're bound to fail. You have to burn the bridge of return." Success requires a one-way path where failure is simply not an option.
2. The Loneliness of the Journey
The startup path is inherently lonely. While your batchmates are climbing the corporate ladder at large enterprises with prestigious calling cards, you are struggling in anonymity. Majumdar emphasizes that family support is the silent determinant of success. The mental trauma of a startup can only be weathered if your personal circle understands and backs your vision.
3. Beware of Vanity Metrics
In his portfolio companies, Majumdar keeps a sharp eye on what he calls "loss-making metrics." It’s easy to scale numbers by spending money, but those are often vanity metrics that look great in a PowerPoint presentation but kill the business. The real "North Stars" are runway, cash collections, and cash burn.
Founder's Lesson: Runway is Cash Risking
Majumdar recommends that every startup should maintain at least 9 to 12 months of cash runway at all times. In the world of B2B and SaaS, a fundraising journey takes at least six months, and having a buffer is the only way to survive market downturns like COVID-19.
The Investor-Founder Relationship
Does raising money mean you now have a "boss"? Majumdar dismisses this notion. "Good investors never become bosses. The business belongs to the entrepreneur, and it is the entrepreneur who determines the success of the investor."
However, he urges founders to treat investors as partners. His golden rule: "Share the negatives early." Everyone wants to share the wins, but the earlier you share the challenges, the more your investor can help you navigate them. Like any relationship—be it a spouse or a business partner—it only succeeds if there is a fundamental belief that both parties are pulling in the same direction.
Building for Scale
Ultimately, Majumdar believes that if you're going to solve a problem, you should build for scale. Solving a small problem might keep the lights on, but it won't change the world or attract institutional capital. India, with its massive numbers and rampant digitization, offers an unprecedented opportunity to create "Everything from Nothing."
As he reflects on his own journey—from the early days of Indian broadcast media to the cutting edge of tech investing—Majumdar remains a staunch advocate for the founder. "We have a portfolio, but the entrepreneur has only one business. We have to support them until the end."
About the Guest
Bhaskar Majumdar is the Founder and Managing Partner of Unicorn India Ventures. A veteran of the media and technology industry, he previously held leadership roles at Zee and Times of India, where he led international rollouts. An IIT Kharagpur graduate, he is a twice-exited entrepreneur who has built and sold businesses in technology and digital media. He is also the author of 'Everything Started as Nothing,' a guide for entrepreneurs navigating the startup ecosystem. Bhaskar is a board member of several high-growth startups and actively mentors founders across the India-UK corridor.
Unicorn India Ventures is an early-stage venture capital firm that invests in technology-led startups across B2B, SaaS, Fintech, and Logistics sectors. With funds in both India and the UK, the firm positions itself as the first institutional investor, backing founders who are redefining business processes through digitization.