Silicon Valley Technology Expert Discusses Business Development & Fundraising Strategies For Indian Startups

The global startup ecosystem is rebounding after a few years of sluggish growth, driven by the resurgent wave of Artificial Intelligence (AI). This has renewed the momentum in entrepreneurial activity, and startups from all corners of the world are racing to innovate, disrupt, and create value using the newest capabilities unlocked by AI. 

Yet, the global Venture Capital funding has been  since its peak in 2021, with the total funding down to $248.8B in 2023, the lowest since 2017. So while AI presents exciting opportunities for disruption, the competition has intensified for fundraising and early-stage business development resources. For a cash-strapped early stage startup, receiving capital at the right moment could make all the difference between its survival and doom.

To gain insights on this, we spoke with Praneeta Pujari, a Silicon Valley-based technology expert with a multi-continental career spanning industry giants like Flipkart, Amazon, and Apple, and a track record of mentoring and evaluating startups across the India-US corridor. Praneeta, who was born and raised in India, and now resides in San Francisco, California, is an active voice in the Bay Area’s startup ecosystem.

In this interview, she discusses the latest state of affairs with fundraising for early stage startups, combined with insightful advice on business development and networking strategies.

What do you see as the biggest challenges tech startups face for business development in the age of AI?

AI is unlocking unprecedented technology solutions for problem spaces that have previously been too complex or too labor-intensive to solve. So, companies that can find and articulate unique insights from their areas of expertise or personal experience are likely to have an edge compared to their peers. Translating the technology innovation into a compelling message for customers, investors, and partners is a lesson best learnt by practice.

Adding to that, in B2B markets, navigating long sales cycles might be challenging for startups, so it is important to choose early customer segments accordingly. Startups often underestimate the time and resources needed to close B2B deals. Lastly, resource constraints, both human and financial, make it difficult for startups to execute their vision at scale, so it is essential to prioritize the initiatives that yield the most top and bottom line impact.

You’ve been involved in evaluating startups for venture capital firms. What qualities do you look for in a startup when making investment decisions?

I focus on 4 main areas: the team, the market, the product differentiation, and traction. I start by getting to know the founders, both their personal connection to the domain of their startup as well as their values and motivations. From my experience, resilient founders can weather through the many iterations of the product and idea until they land on a valuable product-market fit. Diversity in the team’s skills and backgrounds is also a positive indicator.

Next, it is important to understand the market, whether the founders have a unique insight about their market, technology, or product that makes their offering 10x better than what is currently in the market. Is the market large enough, and is the startup addressing a significant gap or unmet need? Timing plays a crucial role here as well; a great idea launched at the wrong time can struggle to gain traction.

Lastly, I look at what traction they have generated so far, although this might vary across the stage of the startup. It is important for startups to signal early on their ability to close a sale or convert initial customers.

Fundraising is another major hurdle for startups. Based on your experience, what strategies can entrepreneurs take up when seeking funding?

The first step is to ensure that you are solving a real problem for a well-defined market. Investors want to see that there’s a genuine need for your product and that your solution has the potential to scale. During initial pitch meetings, it is important to know your data, industry, product details inside out. Have the most important metrics for your startup handy, such as Customer Acquisition Cost (CAC), Lifetime Value (LTV), and burn rate. Attention to detail makes an impression. 

Building relationships with investors is important, however allocate your time wisely on this, and focus on meaningful longerm connections through a strong mentor and advisor network. When it is time to fundraise, research the potential investors, their portfolios, area of focus and thesis, and tailor your pitch accordingly. Lastly, it is a numbers game with a decent amount of luck involved, so prepare to hear hundreds of ‘no’s before you get a ‘yes’ that pays off.

What trends do you see emerging in the tech startup ecosystem, particularly for companies operating in the India-US corridor?

One exciting trend is the build-in-India and sell-to-US model where Indian startups are building global products from their home turf. These companies are leveraging India’s engineering talent to create cost-effective solutions for international markets.

I’m particularly excited about advances in health-tech that are going to be unlocked by AI. Healthcare has traditionally been a labor-intensive industry, so the impact of AI solutions will be quite transformational on human wellbeing and access to universal healthcare. There is growing consumer interest towards sustainability and impact, so investors are embracing the same by enabling startups that are addressing the environmental and social challenges.

How can early-stage startups identify high-value opportunities and thrive in the fast-evolving, AI-driven tech landscape?

Once the founders identify a domain, industry, customer segment, or a problem, the next step is to talk to as many customers as they can and deeply understand the problem, the market, and their pain points. Often, what’s most challenging is to find an unaddressed pain point that also has a large enough market and a profitable path to generating a business out of it.

Startups can leverage not just as a feature but also a core-enabler for their business. In the resource-constrained early stages, there are many no-code and low-code tools that can automate software development, design, payroll, accounting, compliance etc.

Data advantage goes a long way. What new type of data is your company able to generate that is valuable to the market and inaccessible to your competition? 

Lastly, what’s your vision for the future of the global startup ecosystem, and how do you see your role evolving within it?

I’m excited to advocate for and support the biggest and best innovations that are yet to come. The barriers to innovation are lower than ever, and I deeply believe in the potential of technology to democratize the access to universal basic needs including education, and health care. I’m fascinated to witness the course that AI takes us on over the next decade. 

I hope to see more cross-border collaboration, where teams from different regions come together to solve global problems. I’m particularly passionate about empowering startups in emerging markets like India to reach their full potential on the global stage.

I am committed to supporting founders from underrepresented communities and minorities such as women, and advocate for more funding for them. As for my role, I see myself continuing to bridge gaps – whether it is between startups and investors, technology and markets, or regions and cultures. I’m excited to keep learning, growing, and contributing to this dynamic ecosystem.