KURUVINDUM
INVESTMENT
PHILOSOPHY -- MORE
DETAILS
MORE DETAILS ON >>> "Our preference is generally for a passive, pure investment role."
First a couple of caveats.
This preference for a "passive, pure investment role"
applies, albeit to differing extents, to our (relatively conventional) investment
activity, as well to our other (relatively unorthodox) activity of
facilitating the "Idea to Company Transition" for people with great
ideas (but no
business plan, prototype etc). Our involvement is relatively less passive in
the latter case, but even in the former
activity area, we are always available
to provide mentoring and strategic/operational inputs, advice etc (e.g. if so requested
by the entrepreneur and/or the investee company and
generally on a purely honorary basis).
RATIONALE
The above
mentioned preference (for a "passive, pure investment role”) is
driven by some very practical considerations e.g. the two described
below.
1
> The entrepreneur benefits -- avoiding micro-management
We strongly
believe that
that the entrepreneur knows his/her business best. The natural consequence
is our equally deeply held belief that
micro-management by us (or indeed by any other outside investor) is
almost always a counter-productive management style. Our preference for a passive investment role implies that
the entrepreneur is generally left
free to manage his/her business without needless
interference from our side in the day-to-day business
minutiae.
2 > We too
benefit -- conserving
management bandwidth
There are various associated advantages that accrue to us through such a passive investment role (passive but, as mentioned above, coupled with providing guidance and/or advice whenever necessary/requested). For example, this enables us to conserve our management bandwidth. This in turn facilitates our focusing on higher-multiplier activities such as evaluating new investment opportunities, providing strategic guidance to existing investee companies (if & when so requested), keeping up with technology trends etc.
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