Photo: Arjun Srinivas
After winning a Wharton Business School competition, Arjun Srinivas and his co-founders walked away with a number of awards and $30,000 in grant money for their startup Innova Dynamics. The company ended up securing $4.5 million in their Series A round and even had to turn down investors.
Although he considers them successful in their funding, Srinivas says one of the biggest mistakes the company made was taking too long to decide who to bring on as investors.
“It took us an entire year to close up our Series A because we were in an ‘analysis paralysis.’ We had all these options on the table, and when we finally closed, we wound up doing a lot of what the investors told us to do or suggested.”
“That really early stuff is almost exploratory.”
“Both the entrepreneur and investor knows that what you wind up doing is never what you’re going to do in your business plan. And it’s not because you’re lying, but sometimes, something you think the customers are going to love, they end up hating, and you’ll have to tweak it.”
Srinivas tells us that one firm even spent $50,000 in legal fees just to analyse their patent.
“It was like deep diving through everything we knew.” he tells us.
Innova Dynamics is currently in their Series B round and is targeting $10 million by the end of the third quarter this year.
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