It seems dot com companies that facilitate actual transactions are still in vogue even if they might be in really early stages. So Canaan Partners has announced that they are investing in Motorexchange.in which is aiming to be India’s largest used vehicle marketplace. The amount of investment hasn’t been disclosed by Canaan. Canaan’s earlier investments include Bharatmatrimony and Techtribe which shutdown early this year.
Motorexchange was in the news recently for acquiring Cartradeindia.com. Motorexchange is headed by Vinay Sanghi, the former CEO of Mahindra First Choice and Rajan Mehra, venture partner at Clearstone Venture Advisors and former country head of eBay India.
Alok Mittal from Canaan partners mentions inhis blogpost at venturewoods that the key reason to backing this startup is the team. He says and I quote “It is a very early stage investment for us, and the key driver in the decision has been the team behind it.” One can look at the entire team here to know why Alok is so bullish on this business.
Is Team Everything?
A lot of entrepreneurs who lack a great team (at least on paper) would wonder if team is everything that one requires to make a business a success. Well there was a great example a VC gave me once. He said ” If the company is run by just one inexperienced guy then he is surely mad! If its run but 3 guys with some experience then they maybe mad! If its run by 10 guys with great relevant experience then they know what they are doing and Im comfortable investing in them!”
As you can see VC’s don’t know how big a risk they are taking but a good qualified and experienced team just helps them calm their nerves a bit and back their investment decision. So unless you are talking to Ajit Balakrishnan Id say avoid asking money from VC’s if you are 22 year old and inexperienced!