Use of Proceeds : Why details matter

Understanding the startup's business is important. When we are investing in startups, our analyst research helps us ask questions and raise our level of understanding of startups business. As part of our deal flow and investment process, we spend a significant time with startups. The founders come with a great vision, verve, passion and mission to solve a problem, however the world out there is far from easy. The challenges come from multiple directions, and as an investor, our understanding leads to make the right investments and back startups with strong potential.

The most important element that we seek clarity is on the use of proceeds. Between the lofty vision and the future promise, the only tangible element on the table that a seed stage fund can recognize is use of proceeds, tied with tangible results. The tangible results are quantitative and qualitative outcomes, defined by the founders. The use of proceeds are tied in achieving these tangible outcome; and here is where the detailing helps.

The detailing enables the founders to be supported on the ground, with the capital put to full use to achieve this milestone. This helps the founder to achieve the plans, thereby controlling and learning from the results, and working to cover ground or pivot, as per the outcomes. The deep dives that we do help the founders achieve this clarity, and ultimately deploying the money where they believe their mouth is.

Our motto of 'success with clarity' ties with deep analysis of the startup's business and the milestones. That is exactly what the seed stage growth means.

~Krystal Ventures Studio