What Investors Actually Want: 7 Unfiltered Lessons from Top Indian VCs

As the Delhi sun cast golden hues over Pragati Maidan, Startup Mahakumbh 2025 buzzed with more than just entrepreneurial energy—it pulsed with ambition, curiosity, and the pursuit of investor insight. On one of the summit’s most anticipated panels, five stalwarts of the startup ecosystem took center stage. Moderated by LetsVenture and Trica Founder-CEO Shanti Mohan, the panel featured Mahavir Pratap Sharma (Swishin Ventures), Vikram Vaidyanathan(Z47), Vivek Khare (SamVed VC), and Vibhore Sharma (Capital 2B, RedStart Labs). Together, they offered a rare, unfiltered look into what makes an idea fundable—and a founder unforgettable.

The Scalability Imperative: Beyond One-Off Successes 

The conversation began where every founder’s pitch ultimately leads: scale.

"When I'm investing, what I want is the problem they are trying to solve and whether you will scale or not," said Vivek Khare, cutting through the noise. "And for me, the scale is basically—is can I visualize a repeatable scalable model that if you're able to solve, there are multi many such customers that you'll be able to go after?"

It was a wake-up call to founders leaning on isolated wins. Investors don’t invest in moments—they invest in models. A single success might turn heads, but it’s the promise of consistent replication that attracts funding.

Building Early-Stage Conviction: Vision Over Metrics

But even before scale is visible, investors are making bets—on belief.

"At our stage, we are not looking so much at traction or revenue," Vivek explained. "It's basically if we have conviction in that space and if we find that we resonate with the founder's vision... we already have a thesis around what he is trying to do."

This revealed a crucial insight: early-stage investing is as much emotional as it is analytical. The founder’s clarity, passion, and vision must align with the investor’s own thesis to create conviction.

Finding Your “Super Node”: The Power of Champions

Yet, vision alone won’t open doors—relationships will.

"For any sort of pre-seed founder, it's actually great to go find that super node who's your champion in the ecosystem," advised Vikram Vaidyanathan. "At least to reach large funds like us, that is actually the best route."

Mahavir Pratap Sharma amplified this: “Every ecosystem has to be branded, and brand ambassadors are very, very critical. Otherwise... you just stay put and stay quiet.” Visibility, he emphasized, isn’t vanity—it’s velocity.

Champions don’t just advocate—they accelerate. In the early hustle, the right introduction can be game-changing.

Bharat Rising: Why Tier-II and Tier-III Cities Matter

From relationships to geography, the panel turned to the overlooked promise of India’s smaller cities.

"The tier two, tier three cities in India have a much better opportunity for startups to be in," Mahavir observed. With lower operational costs, growing talent pools, and improved quality of life, these cities offer fertile ground for sustainable ventures.

He added, "So proximity to a larger city as well as somebody like, you know, Mahavir there... Because I think you need the champions in the ecosystem."

In short, Bharat isn’t lagging—it’s leading, quietly and confidently. Founders who look beyond the metros might just discover their unfair advantage.

Deep Tech Realities: Problem-First, Science-Led

Still, for deep tech founders—whether in metros or small towns—the challenge is unique. Here, science must precede scalability.

"I'd rather the founder [is] looking at a problem first," said Vibhore Sharma, "and whether or not the solution fits the glove... because the first part of failure is the science won't work."

With deep tech, proving the science isn’t optional—it’s foundational. Only once that’s done can scalability and funding follow.

The Government Conundrum: Friend or Funder?

Another challenge for deep tech startups? Navigating their most paradoxical ally: the government.

"Change the investor sentiment about government as a customer," Vibhore urged. "Most deep tech companies that I meet, government would probably be the first and only customer that they will have."

His advice was clear: don’t build around a single gatekeeper. A blended capital stack—government, private, institutional—is not just helpful; it’s necessary.

Spotting Red Flags: What Turns Investors Away

Even as they shared what excites them, the investors didn’t shy away from what repels them. For founders hoping to impress, these red flags are essential to avoid:

• One-off customer success is not a sign of scalability.
  Vivek cautioned, "If somebody says, ‘I have this one validation,’ which I find will not be repeatable—that’s a red flag."
• Blindly following investor advice can backfire.
  "Do not outsource your judgment to investors," Vikram warned. "We know almost next to nothing about your business."
• Buzzwords without depth signal a lack of substance.
  "The moment somebody says we're an AI company, I have a null pointer exception," Vibhore said, calling out jargon-laced pitches with little innovation underneath.
• Unrealistic valuations are an immediate turnoff.
  "Just because they're raising five crores does not make their valuation to be 50 crores. There has to be justification on everything," Mahavir pointed out.

Each warning offered more than investor pet peeves—they were insights into what founders must avoid: hype, vagueness, and inflated egos. What wins is honesty, depth, and a deep understanding of one’s own venture.

The Gender Gap: Acknowledging and Addressing Bias

Even the strongest ideas can hit invisible walls—especially for women founders.

"So they miss the natural network capital, and they have to fight a little bit harder," Vikram admitted, highlighting the systemic barriers they face.

Shanti Mohan didn’t hold back: "I think women have to work probably a lot more harder because it's still a very broke club culture in investing today."

The panel didn’t just recognize the gender gap—they emphasized the growing movement to change it. With resilience and strong products, women founders are breaking through.

The Final Word: Build Bold, But Build Smart

Startup Mahakumbh 2025 wasn’t just a celebration of ideas—it was a masterclass in startup survival. It pulled back the curtain on what truly shapes funding decisions: clarity, conviction, connection, and character.

The investor’s mind isn’t a fortress—it’s a framework.

And as the last echoes of applause faded into the Delhi air, one thing became clear: those who truly listened weren’t just inspired—they were equipped.