Troubles due to ethnicity when it comes to VC funding

[Determined]

@Jason Voorhees

I’m building a life-sciences consumer product primarily for the Indian market together with a PhD-led R&D team based in the UK and Eastern Europe. I’m currently based in Western Europe myself.

We’ve completed the scientific planning and feasability and are now at the execution stage, which requires VC capital.

Western VCs don't want to touch our startup due to cultural/ethical reasons, however, Indian VC's seem to be interested(we have only started pitching via cold outreach since December 13th).

One large Indian VC has been explicit that they like the idea during our video calls but typically invest only when there is an Indian founder or Indian diaspora founder involved, but they were willing to make an exception.

I’m waiting on their final discussions and decision on wether they would be willing to continue with me as a non Indian founder since they like the startup.

In the event that an Indian co-founder becomes a requirement, I wanted to ask whether you’d be interested in taking on a founder-level role focused on India execution.

I basically want to be able to tell them that I do have a willing Indian co-founder that is interested and willing to co lead the project as a trump card, if they reject me based on my ethnicity.

You don't lose anything and I'm not asking anything of you, I'm just trying to provide value to the both of us.

This seed round will be approximately $2M, and I believe the business has the potential to reach $100M in annual revenue and with a lucky strategic pivot we could make billions yearly depending on the CDSCO's (Indian drugs and cosmetics regulatory body) leniency.

The logical solution would be to keep pitching and find a VC that is willing to invest in a non Indian founder however this company is just a stepping stone to me and I value speed and execution over some loss of personal revenue. The agepill is a real thing.

I know it's vague and you don't know what we are developing but I can brief you on private dm's, just ask away!

Best regards,

Determined

 

[Nexom]

This is actually your first post, mirin.
Is this message for Jason or anyone?
Either way, imo make sure you don't claim to have already found an indian co-founder, make it clear to the VC that you're talking to people (I think you already are based on this post). Maybe you could make a condition after they agree. Wishing you best of luck and finding the right person.

 

[Determined]

This is actually your first post, mirin.
Is this message for Jason or anyone?
Either way, imo make sure you don't claim to have already found an indian co-founder, make it clear to the VC that you're talking to people (I think you already are based on this post). Maybe you could make a condition after they agree. Wishing you best of luck and finding the right person.

First of all thank you for the kind words and yes that is exactly what I'm planning on doing.

Anyone who has lived in India, speaks Hindi and has a atleast a bachelors degree in STEM can DM me if they are interested.

Jason Voorhees always seemed like an above average intelligence money hungry guy to me when I used to have an account on here ages ago and I don't really have any connections to anyone Indian (diaspora) with a proper education.

With my meeting being last thursday, I had to get creative with getting a possible Indian co founder on board ASAP.

Edit: I will be going to bed now since it's quite late here, I will be checking my dms all weekend for any questions. Have a nice day guys.

 

[Jason Voorhees]

I'm guessing the hesitation from western VCs is due to it being something bioethics related like stem cells or personalized meds? Feel free to clarify without spilling IP but I’ll be honest. As a forum user encountering this as your first post from a brand new account as a greycel. I’d be cautious. Anyone who is serious about startups knows that a founder level role isn’t something that can reasonably be positioned as a contingency for optics and I'll have to respectfully decline as I already have a day job, family and my plate is already full of commitments but I do have some advice for you.

On the VC front I'd recommend broadening your search to American VCs they often have global mandates, more hungry, risk tolerant and generally more open. Many U.S. firms actively invest in India focused startups and they might be interested if you highlight your UK/ Eastern Europe R&D

You're not wrong about how Indian VCs think, a local and diaspora does help since the Indian market is complex and fragmented but I'd suggest you think hard about these decisions since they can make or break your startup trajectory. Finding someone who brings real value, someone who is interested and is willing to be your cofounder instead of some rando with passport match is more important.

Also one more piece of advice. If a fund is already hesitating due to your ethnicity before investing that doesn't magically improve post checs that bias will surface later so be selective with your board. Think about it long term try to find an aligned fund and not bend to unlock the wrong one. Landing video calls so quickly after starting cold outreach on December 13th is not a small feat btw

Another great idea would be to engage with established Indian ecosystems like IIT incubators IIT Bombay SINE, IIT Delhi FITT, IIT Madras Incubation Cell or IISc-linked networks. These are colleges with top tier talent and an IIT affiliated India lead operator carries way more credibility than a random passport match plus they often come with access to grants and mentorship.

lf you're open to it I could tap into my own network (alumni connections, etc to make a couple of warm intros to folks I know just to help you explore options faster. No promises but happy to point you in the right direction if that'd be useful just send a high-level one pager and your co founder criteria. Good luck man