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Saharsh Sharma

VC at Orios | Ex-Founder | OLA | Rivigo | IIT | Startup Investment (Seed - Series A) | I write about Startups & Venture Capital

Professional Background

Saharsh Sharma is an accomplished entrepreneur and investor with a strong passion for startups and innovation. His journey in the entrepreneurial ecosystem has seen him take on numerous roles that highlight his expertise in evaluating and building dynamic businesses. With a career marked by a deep understanding of market trends and a knack for identifying disruptive ideas, Saharsh thrives on the challenge of uncovering game-changing companies and fostering their growth.

Over the years, his professional trajectory has taken him through various esteemed positions, each contributing to his comprehensive capability in the startup landscape. As a former Assistant Vice President of Investments at Orios Venture Partners, he played a pivotal role in assessing promising startups and building investment portfolios that reflect his strategic insight and market acumen. His leadership in this role was driven by a commitment to nurturing innovative companies that have the potential to change the world.

Previously, Saharsh co-founded Haplo Health, where he demonstrated his entrepreneurial spirit by creating solutions in the healthcare sector. This experience not only showcased his ability to lead but also affirmed his belief that passion and discipline are essential drivers of successful entrepreneurship.

Beyond investing and entrepreneurship, Saharsh has honed his analytical skills through roles such as Senior Business Analyst at Ola, where he contributed to data-driven strategies that enhanced operational efficiency and fueled company growth. He began his career as a Business Analyst at RIVIGO and also worked as a Research Associate at Baden-Wuerttemberg Cooperative State University (DHBW), where he further developed his analytical capabilities and understanding of market dynamics.

Education and Achievements

Saharsh's academic journey began at one of India’s most prestigious institutions, the Indian Institute of Technology, Roorkee, where he earned a Bachelor of Technology (B.Tech) in Engineering. His education has equipped him with a strong technical foundation and an analytical mindset critical for navigating the fast-paced world of startups and technology.

Achievements

Beyond his corporate accomplishments, Saharsh has been actively involved in various organizations and initiatives that demonstrate his leadership and dedication. He held several leadership roles during his time at the Indian Institute of Technology, Roorkee, including serving as General Sports Secretary and Event Coordinator for the Cultural Fest. His involvement in these capacities highlights his commitment to fostering community and teamwork, attributes that are vital in both the entrepreneurial and investment landscapes.

Speaking to his passion for nurturing innovation, Saharsh communicates his belief that only disruptive ideas have the potential to transform society. As he continues his endeavor to support budding entrepreneurs with bold visions, he actively seeks collaboration opportunities with startup founders who have innovative solutions. Saharsh embodies the conviction that investing is a true art form, and he approaches his work with creativity and diligence, fostering an environment where ambitious ventures can flourish.

Final Thoughts

If you are an entrepreneur with a vision to make an impact or a startup enthusiast looking to cultivate meaningful connections in the business world, Saharsh Sharma is eager to engage and collaborate. His insights into the startup ecosystem and his drive to invest in transformative ideas make him a valuable connection for anyone looking to innovate and disrupt the status quo. Together, through strategic partnerships and mutual support, there lies potential to shape the next generation of pioneering companies.

Highlights

Jun 26 · linkedin

Business model of a Venture Capital fund :  How is a VC structured and how does it make money?

Stakeholders involved:

  • Limited Partners
  • General Partners (and the VC fund team)
  • Portfolio of startups

STRUCTURE OF A VC FUND

𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬 (𝐋𝐏𝐬):

  • These are the investors in the VC fund / VCs raise funds from these entities

  • They can be high net worth individuals (HNIs), financial institutions, or funds of funds (FOFs) etc.

  • LPs provide the capital that the VC fund uses to invest in startups.

𝐅𝐮𝐧𝐝 𝐒𝐢𝐳𝐞:

This is the total amount of capital that the VC fund has raised from LPs.

𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬 (𝐆𝐏𝐬) (and the VC fund team):

  • These are the managers of the VC fund.

  • They are responsible for sourcing and evaluating potential investments, making investment decisions, and managing the portfolio companies.

𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐅𝐞𝐞𝐬:

  • This is a fee that the GPs charge the VC fund for managing the quantum of funds raised.

  • The fee is typically a percentage of the fund's committed capital (the total amount of capital that LPs have agreed to invest).

  • The management fee is in the range of 1.5% to 2% of the fund size.

𝐂𝐚𝐫𝐫𝐲:

  • This is a performance fee that the GPs earn if the VC fund generates a return on its investments.

  • The carry is typically a percentage of the profits that the fund generates after LPs have been paid back their investment.

  • The carry is in the range of 20% to 30% of the profits.

𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨:

This is the collection of companies that the VC fund has invested in.


VC FUND LIFE :

  • VC funds typically have a closed-end structure, which means that they have a fixed period during which they raise capital from LPs. Once the period is closed, the VC fund cannot raise any additional capital.

  • VC funds typically have a 8-10-year lifespan. During this time, the VC fund will raise, start investing in startups, and then look to sell its investments to other investors or strategic buyer or through an initial public offering (IPO).

  • The returns of a VC fund can be very high, but they can also be very low. Inherently a very risky asset class = quantum of profits is uncertain = carry is uncertain.

#VentureCapital #Structure #FundLife

May 27 · linkedin

How do #VentureCapital firms find startups to invest in ? [Part 3]

This post is about SCRUTINY

We discussed :

SOURCING in Part 1 - https://lnkd.in/givzQPxC

SELECTION in Part 2 - https://lnkd.in/gxXcNckR

Covered in this post: Scrutiny filter (subjective in nature)

  1. Quality check 
  2. Business Model

QUALITY Check :

All things qualitative are evaluated :

  1. 𝐓𝐞𝐚𝐦 (𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 + 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭)

A. Proof / proxy for 𝘴𝘤𝘢𝘭𝘢𝘣𝘪𝘭𝘪𝘵𝘺 :

  • Have been founders and built businesses   → what succeeded and what failed ?    
  • Have been executives and run businesses before (usually #startups)   → Reference checks from previous teams     B. 𝘋𝘰𝘮𝘢𝘪𝘯 𝘦𝘹𝘱𝘦𝘳𝘵𝘪𝘴𝘦 :  → Checked via industry understanding and insights
  1. 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 : 
  • Strength and protection offered by the startup is important.       → Differentiation, market fit, and tech + commercial scalability.    
  1. 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐁𝐞𝐡𝐚𝐯𝐢𝐨𝐮𝐫:
  • Loyalty and satisfaction can indicate the potential for growth and sustainability.      → Repeat customers and positive feedback (captured during due diligence) are valuable indicators.

BUSINESS MODEL:

Showcase of how an organization :

  • Identifies value
  • Creates value
  • Delivers value
  • Captures value

Techniques to understand business models better:

  • Business Model Canvas
  • Analysis frameworks (SWOT, Porters, PESTEL etc.)
  • Competitive Advantages / Moats

𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥 𝐂𝐚𝐧𝐯𝐚𝐬 -  A tool to help understand the fundamentals of a business

𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬 - Tools to evaluate the merits and demerits of a business model.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 / 𝐌𝐨𝐚𝐭 :

How time-consuming or costly it is to:

  • replicate the business
  • maintain an edge in the market.

e.g. Razorpay : deep feature packed integrations disincentivise the business to switch to a different payment processor.

Broadly speaking, there are 4 types of moats / competitive advantages:

  1. Network Effects
  2. Costs 
  3. Intangible Assets 
  4. Resource

Will elaborate on Business Model Canvas, Analysis frameworks, Moats / Competitive advantages in next post.

Related Questions

How did Saharsh Sharma develop his expertise in evaluating startups?
What inspired Saharsh to transition from a business analyst role to co-founding a health tech company?
How does Saharsh Sharma identify disruptive ideas in potential investment opportunities?
What were some key strategies Saharsh employed during his time at Orios Venture Partners?
In his opinion, what differentiates a successful entrepreneur from others in the startup space?
Saharsh Sharma
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Location

South Delhi, Delhi, India