Clarity Talk with Sushil Sharma Founder Marwari Catalyst - EP54

If you want to understand the working of startups and venture capitalists, this episode is for you. Listen to this bind blowing journey from a back bencher to 500+ Cr venture capitalist. From a BCOM with 37% marks to now 50+ startups under his umbrella.

Sushil Sharma is Founder & CEO of Marwari Catalyst.

Marwari catalyst is India’s fastest growing accelerator startup, it is having 50+ startups with 100+ startup founders, the total portfolio valuation is USD 200+ million.

Sushil Sharma transformed his career from Cyber Cafe to Website Design to Edu Software Company to Yearbook Startup to Venture Capitalist to Ecosystem Player.

LinkedIn Profile - Sushil Sharma

LinkedIn Profile - Marwari Catalyst

Visit their website - marwaricatalysts.com

For any career transformation, productivity and life fulfilment guidance reach Rakesh Mathuria at - https://www.rakeshmathuria.com

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Transcript

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As an angel investor. Why people associate. This is never about money, boss. That is what I've realized. You wanted to create a network with a successful founders. Founders that is one. You wanted to enjoy this journey. You wanted to know why you have grown or why you have failed. You wanted to contribute in the journey of a startup. Or you want to start your own startup eventually. That's why angel investors associate with startup. You need to understand that still mujek Assam Industrial touch. Technically, it is a business. It is not to do only with the story, it is also to do with the execution. And there is a money which is involved. If you want to understand the working of startups and venture Catalyst, this episode is for you. Today we are having founder and CEO of Marvadi Catalyst with us, shushil Sharma. He started Marvadi Catalyst in 2019 and within three years Marvadi Catalyst is having more than 50 startups and more than 100 founders under their umbrella. The total portfolio valuation is 200 plus million dollars. Apart from this, it is having more than 35% of women founders and 80% of women's staff. In this episode we discuss about different career transformation and then the journey about how he landed as a venture capitalist. We discussed how to raise the funds, how one can start a startup. We discussed that what is the role of mentors in our life, what is the role of accelerator venture capitalist. We also discussed what is an unicorn and what is this first about unicorn in our media? We discussed how to get life fulfillment from entrepreneurships and how to manage time in this fast paced world. So without further ado, let's jump into the conversation. Hello everyone. This is Rakesh, your coach, author, speaker and career transformation export. Welcome to my podcast. Let's talk clarity. Let's Talk Clarity, in which we discuss about career transformation, productivity and life fulfillment. Let's start the episode and talk clarity. So, Shusheel, welcome to the show. Thank you, Rakesh. It is always a pleasure to work and sit and speak with our classmate and we have enjoyed the school journey together. So nice of you. Yeah. So let me introduce Shusheel, that we were in the same class, same school in 1998, in 12th class. And so the first question to you, Shusheel, is we were in the 12th class in 1998. So have you thought that you will reach here, you will be a venture capitalist and how that has happened? So, Rakesh, to be honest, we were in same class and I was a backbencher, always found you can find me in the playground. So yes, being a sportsman, we were always optimistic by approach. We always bounced back, even if we lose the match, but never thought that we'll become a venture cap place. Being a bank venture, we were always of opinion. Nikoljayagi or obviously Mary Bashid, Bi Malometho, third Division, say Mary Twelve, who or graduation we menay 37% say key but I think what contributed in my life was some people who I got connected to and I spent a good time. international travelers or Bosar international travelers or internet connected tour direction video motivation media or Vocus in the game. Okay. And that's where the journey started and you know where we are as on today. Wow. But in the last 20 years you have changed so many businesses from cyber hub to then making it park and then going to foreign countries and then running a digital marketing company marketing company and then coming back to venture capitalist and how this transition has happened and what pushed you? What is driving you in this whole journey so ruggish when we started, you know the cafe and I, you know the cyber cafe first just after my graduation the prices of Cyber Cafe was Rs240 per hour per hour, okay. Within a year it reduced to Rs30 per hour. So that realized that there's a right time to enter and right time to exit. So we sold this company to somebody in Jasalmaya because I realized that those people were into tourism industry. So Cyber Cafe was their client engagement tool but they were making money out of their tourism industry booking the hotels or maybe booking the resorts or maybe taking them to the camel safari and all so that triggered me business entry and then we exited from that business. It was a good journey, we made some money and good connection. So obviously there was a motivation here. was quite new. Means website designing in India was quite new at that point of time. It was new and rakesh to be honest. One thing which I have learned when we started cafe and when it was in the when in the first twelve months I've lies meripas uswa cafe car three XCa proposal taha peshhnika but by the time the prices reduced to 30 I have to manage myself with one third of the price. So I realized topping over the boss, you should exit. That's a good learning for me from the first business website development business. I pivoted to a software company for an education vertical education, vertical principals or directors. So I think that was a triggering point. Another triggering point was I become a member of Ese Electronics and Software Export Promotion Council which was promoting small companies from tear to market to a global market. there is a lot of front end and backward integration, okay. Indian economy, undeveloped economy and that triggered me. it co explored. agriculture business and my background is agriculture. My dad is six brother, five of them are farmers. In 2012 I ended up acquiring running agriculture farmhouse in Ethopia. Okay. I made good money, okay? And that was another trigger in my life. Boss, you don't have to start anything from zero. You can always come in the right time, shape it, package it well and exit when there is a right time, when there are a lot of people who wanted to come. You can enter at three and exit at ten. Yes. So I think hamney was farmhouse co jobie x Value palia X Value post exit it was one of the shareholders in the company. We made good money, we made good knowledge out of it and that triggered me that you should enter it at the right time, exit at the right time. So I think these are the some examples which changed my life. What you say from the backbencher to a venture capitalist so Rakesh, if you ask me what is my definition, who is sushil so I say from a backbencher to a failure founder to a funded founder, successful founder, angel investor now to an ecosystem player. That's what is Sushil all about. That's what is a journey all about. I have enjoyed so what I have heard is the ecosystem player. advisory be available, investor be available. This is an entire process startup advisory, angel network, coworking space and venture capitalist is pure equation because search connected dots. Okay, interesting why I feel we got comparatively a better response as compared to anybody else. community building focus here. because initially cafes were known for intellectual places to discuss. Okay? Yes. Mentorship anybody's life is very important. We say memories are priceless and the best memories in life is very important. So we captured some of the areas where we can actually connect with the youth because India is a guided missile, unguided missile with youth, right? So if you can guide the youth in the right direction, nothing better than this. milestones. So I think these are the dots with international exposure. I think this was a key for what we are as on today at Marvadi Catalyst. Okay, so what I'm hearing is the first eight starts were very important and the youth is there in India, which is available. But there is one question. There is one guy or one girl who has just passed out from the college. He's full of energy and having a great idea in his mind then what he can do. Or what he can do Marvadi Catalyst, the Casse Ponce or Case approach or what else they can do. So, rakesh Marvadi catalyst, as I said, is an accelerator. Accelerator, accelerator. So accelerators are technically the growth stage partners with startups. Okay. So if a student from a college with a lot of energy is there, so what we can help them is to become a co founder in other company or maybe a eshop or employee, senior employee in other startups. Startups but if they want to run their own company I think we are not the right people. ecosystem start integration. early stage key guidance which is incubation. Incubation stage acceleration, startup start, curly idea, early revenue, early traction. Stage pay advice, capital. maybe buy invite and same way. investors capacity. He says what is there for you? And when you say you are a shareholder, it makes their work easier. So I think equation called Solve karna hamarily or startup. Great, great. How you will define the definition of success for a startup and for shushid. So, Donna, about the different questions success. I've started Marvadi Catalyse when I was out of bread and butter. When I started Marvadi Catalyst I closed my DMAT account and I really wanted to because why I started Marvadi Catalyst is actually a larger question. Because as I said that I have started as a struggling founder. successful parameter growth parameter we validate. Some people recognize us. We can contribute something in somebody's life and we can give them a direction. Direction is not only related to what to do, when to enter and when to exit is also very important. Or AARMA startup definition below the coursework. valuation parameter here it is just a validation of being successful that is not success. Success is being happy. Success being solving some problem success being talking to your peer team members and enjoying the journey. So I think that journey what I always say, it's a journey. It's never a destination. But that's a success for me. Great. So, journey. And let's discuss team Salme from starting a venture. Capitalist company and making making it to valuation of 500 kuro within three years. Teen Salme COVID b IR. Wave One, wave Two, wave Three logo gene Vaneka and you have created a company evolution of 500 crore in this. Whole journey. So Rakesh, tier two, tier three city. So my definition is that the gold lies in tier two tier three market in India. This is my strong parameter. And there was a brain drain from a smaller cities. Micro cities everybody understands totally agree yes I think COVID has been a blessing. impression change. You're going to conferences, you are attending multiple activities, you have multiple round of success stories. So I think cultural change was strong. Ecosystem be available, environment be available. Or it's a good journey. You can enjoy the journey. So I think knowledge Miller virtual conferences I could found a shift to a coach incubation acceleration side YSP key factors say Marvadi catalyst key is journey go from 20 croads to find it road. And hopefully we would like to become the first unicorn in a category of Accelerator. That's the mindset behind creating Marvadi catalyst that is very good that COVID image of Sabloak Parishanthe you took it as an opportunity usque as an opportunity though. Reverse brain drain. Curricula. They are coming back to tier two. Tier three. And you tab that vision and that potential to convert into a company. So rakesh shampooman I bought. Strong statement dunga. You make friends for the bad time, right? Yes. So why we got validated, why people appreciate us is Jump Kovidaya the first Wave boha Sari startup, luggage startups in Social we are finished. That is the end of it. So what we have done is with all of our team members, we have done an online zoom call and that day we not only decided, we called all our starter founders on that day and said your survival is not dependent on your business. We'll take care of your survival. We have actually behaved like an elder brother to them and we were a friends for the bad time. That's why we say that first founders are to be shortlisted by you. So it is not only coveted these all definitions, but you have to understand, they respect us, they feel good about us, they talk good about Marvadi catalysts because we have called them and for a token of validation, we have transferred some amount to almost good number of startups. Okay. So that they don't only feel from your statement survival dependent but taken advantage of this process. normalized everybody has contribute for the goodwill for the growth of Marvadi Catalysts after that. So I think there's a statement you have to make friends for a bad time that is what is the role of an accelerator or mentor or a guide somebody who is also there with skin in the game it was a strong capacity to take care when there is a tough time. We started with building community. And in COVID you acted like an community to support each startup, to support in their survival. Also bohito community building. You have done that, I think, community building. And when I say that a mentor with skin in the game, we say at Big Brother or the garden behind it. So Bahat Sari definition of the rakesh. If tomorrow somebody calls you and say, I'm ready to give you $500,000, you actually do not know what kind of legal structure you have to manage. There must be somebody who is managing on your behalf. first round or first two rounds are just a validation. You are not supposed to be happy, you are not supposed to focus more on a social media and other activities. There must be somebody who can do your internal audit. So there are so many small components upkeep as your first round where the focus business mechanay planning, branding by social and over and above all these things, if there is a wrong person in your captain bill, you have to filter it. So this is also a process when you have somebody like Marvadi Catalyst on your captain that makes your work easier. india has become the third largest ecosystem in the world and I think a reason AK India may become the first in the world in the times to go yes startup so there must be many incubation centers so how the startup can choose and what the checklists they want to check before getting into the incubation center. Rakesh both interesting point of view I think clarity sub founders go honey so subsay pelata Jadhar startups incubation center sub universities okay pella they are going into the university. They are going to universities are starting their own incubation centers. Or maybe the government is promoting with the name of Uttal incubation centers across India. I think there are 60 incubation centers promoted by government and there are around 60 plus by private players itself. Incubation centers? Yes, but still industrial touch. Technically it is a business. It is not to do only with the story. It is also to do with the execution and there is a money which is involved. Same way with the accelerator. incubation capacity give me a check. I think incubations are not supposed to write you a check. They can facilitate, they can connect you to the right people. So you need to know what you want to explore out of an incubator. Same way with accelerator. Accelerators are supposed to write a small check but again, they are not to be treated as a venture capitalist. They are mentors with skin in the game. KCB Accelerator Capacity Challenge premium Customers legal Issue Technical Issue Financial Advisory Issue growth Capital Issue who is the right investor? Who is the right angel network? Who is the right fund for you? That is a process. So this is the biggest suggestion which I would like to give to all the founders. You need to know what you wanted to extract out of an incubator and accelerator, which is very clear. There is a thin line, but very clear line. Very clear line. your expectations are supposed to be very clear. profit is a parameter and founder Kilia Egg journey otherwise, on the other side of the table was founder Sulakti our life is very good, right? They're enjoying, they're making money on other side of it founder Capital venture capitalism there must be somebody who is negotiating on your behalf behalf, yes. Or guiding you or telling you this is a time to exit. Or maybe in this entire journey these two terms are going to be a killing terms for you in the times to go this is very exciting. of. 30 50 then also they were confused whether to become a part of accelerator or not. We got some startup which are even with the revenue of $2 billion revenue only startups program because they understood what is the value of a accelerator accelerator. So I think Indian ecosystem is improving. They're understanding the value of accelerator. They're also trying to understand the value of mentors with skin in the game. And I think because this is a long journey, it's a wonderful my congratulations to the ecosystem player. But yes, you need to be clear. Let's take it forward and discuss something about what are your top three highs in your career? Mincer accelerator career, cyber career, any career what are your top three highs? So there are first is as I shared when I was in Armenia. And I worked out and I have decided that this is an equation which we can also resolve. State government core. But I'm telling you, Rakesh, when anybody comes to Juthur and they come to It Park, they say it is a mini BKC. And I think it has become a milestone for the city. So APJ Dream Achieve. Kurto So it becomes a changer. I think that was high second when I started my venture into a first venture, which was a cafe called with the Book Cafe to promote the Book Cafe. The book cafe. So we say to promote book reading culture and to create an intellectual praise in the books per day. Eventually book culture to reduce orai licking. I think there are still there are a lot of people who are interested in book reading culture. Culture so big reading culture, intellectual place cafes in the older time in India was always known for intellectual places. Eventually Wood dating partying or hooker is. But this culture changed. Karnataki definition abba. There are people who are supporting this call. I've taken a wrong call, okay? But not an artificial thing. Then we entered into this venture of the Book Cafe.

And you mark my word, this cafe operates till 03: 34:52

00 in the night. We don't serve hookah, non wage or a liquor. Successful decision was another validation. Validation, yes. Or Tisra validation or Catalyst come in a roadmap. I will not name the person here, but somebody told Sushil, I don't make a friend who do not have a vision of a unicorn. Unicorn. Because we were very clear that we will only take mentorship from people who will write a check. Was within six months, we did one first event in Jothpur with the name of Rajasthan startup Meetup 1.0 and sit in your cafe. And that day he came with a check and said, kishushil, I realize I'm giving a check. So that's a validation that we have a vision to make Marvadi Catalyst as a unicorn. And I think that is what is a journey. And that I'm talking about almost two and a half years backstory. So I think that was a triggering point for me. He was a very successful startup founder. He has already sold first company at $2 billion. Okay? So I think it was a very good journey and I think that was a motivation triggering point. Happiness, whatever. Because as I said, this is a journey, right? These things are a validation for the entire and the teeny important parameters. He is calling and giving. Let's meet. And luckily, I was in Delhi that day and he said, whenever you're free, come and meet. before Marvadi Catalyst. I failed in four venture capitalist investments back to back continuously. So it is all but missing component. This is my mistake. Not the mistake of a founder first investment founder vision Technique financial knowledge involved investors was the startup. So I think this is all a learning which refined my process. That is what I shared with all the founders that this is what I've learned. My failures are my asset. foundation right pillars first shareholders I think few stages are easy and then every time you have to refine your processes, you have to change your mentors too. So Shah Hambish had $20 million valuation, then they changed their mentors. So this is good to go. Great. It's been great. That the foundation johanna Nichigi Foundation wohamisha strong honeychiya so right people, right cap and what about values? What values we can inbibe in a startup so that it is always good to go strong definition key Founder co street Smart owner and Street Smart obviously, when there are investors who come in series A, series B, they say we are both. I think we also accept at the one point of time that we have to accept that exit so founder Street Smart hoga journey enter OK journey exit values means you should be good with your customer. You need to be very focused on your business. When I started Marvadi Catalyst, I closed my DMAT account. That's the kind of a focus you need. You need to be remove all the sections, all distractions. Yes focus only on your work. Visibility co Founder everything is okay, because you always need to pivot your business. When we started we wanted to become an accelerator, but it was not easy. email accounts because her subhanabaja apps here market checker you are not contributing. That is one very important statement which I may miss. No, I don't want to miss that here. As angel investor, why people associate? This is never about money. He was that is what I've realized. You wanted to create a network with a successful founders founders that is one okay. You wanted to enjoy this journey. You wanted to know why you have grown or why you have failed. You wanted to contribute in the journey of a startup or you want to start your own startup eventually. you are part of that, right? And that becomes a motivation to start your own venture. or eventually enjoy money was always a byproduct. Yes. discussion. I know very less about startup business, but during this last half an hour I learned a ton about the startup, about the venture cap place, about the escalator and I'm enjoying this conversation so Rakesh, this is actually to be enjoyed failure does not matter. The founder is not supposed to fail ideas may fail, ideas may pivot right? And I think that is what we say to everyone even if the founders when we say they found the legal only three companies have failed there are so many ideas which did not get validated but we supported to pivot the idea to the next level. Next level, yes. So founders have not failed. Ideas need to pivot. co founder joint Carlo entrepreneurship joint Carlo that you have to start your own business. You can join as a stock options negotiate for your stocks be a part of the journey. We'll learn it's a culture so off laid what I have seen in our India government job linear so still that mindset is still there in our parents and in our elder generation and even in this generation also how one can decide if Young business career how he or she can take that decision. is journey upco startup management money he validation you can opt for government job government is not bad, but times are tough. They are very strong so getting a government job is not easy rakhi it's more hard than getting a startup successful to be honest so hard working is not a challenge. Journey is important, validation is important, culture is important and startup is a culture. Culture yes it is mindset. Mindset. It's a mindset. It is all about the culture and that's what everybody is supposed to enjoy. Wow. So it's pure discussion. unicorn. What is this all about and why it is flared up in media and even with the government and all, obviously validation. Hona Chi I think the first validation for any startup is getting a first round of Discom Seed Fund. Both very few people talk about pre series A, CDs A, series B, because but the second validation has become a unicorn, which is a billion dollar company. I think there's a lot to be done. But yes, as a benchmarking, people talk about a unicorn, which has become a fashion. And India. It is trending. It's a trending, it's a motivation. And yes, you become hero when you become a Unicon. And I think if you still be calm, be soft and focused, I think the journey begins from here. Great. So what I was misthinking or unicorn it ends but right now. I am understanding that from that milestone the journey starts. That's a second milestone. First is the first round. First round, okay. And I think I say that unicorn is the second stage. The journey is too far because IPO and successful IPO, there's a lot to be there. But yes, Indian scenario IPO was the only success story because APCOR saw those key valuation funds. But now because venture capitalists are ranking see globally the India has become a very strong magnet. legal foundations. This is a journey, as I said, great. And you are always smiling, you are always smiling, always cool and calm and I'm sure you will be having so many work and so many pressure and to run the company and to take it to the unicorn smile or your cool and calm face. What is the secret behind it? So I think team is the secret team. You have a strong team which is working. And I say I'm a brand ambassador for the two therapy market. obviously scheduling, because as I mentioned earlier, I start my day by 600 in the morning I think is the key. I don't miss out my family, I don't miss out my sports. So I think this is all components being scheduled. Being early morning is the key thing. I think these are some of the keys to make me happy. And obviously that you enjoy the journey is the second important aspect. Being surrounded with the right set of people or the co founders. I said there's so many components, occasions, not only one. I think team, I give the first credit, second credit gives to the shoulders of Marvadi Catalyst. Third, I give it to Jothpur by and large because you don't waste time in travel. Now we are resourceful, right? You have a lot of conferences. You can do global exposure when you see things clearly. I'm also a convener for ESC for Rajasthan. I'm also electronics and software export promotion. Council. I'm also a brand ambassador for government of Rajasthan for getting connected to the department head Rajasthan Foundation. I'm a brand ambassador for that. optimistic industry. I think three startups have given me 90% of the money which I've invested in the startup and I still own an equity in around 50 plus. So what is a better return than this can happen? So I think multiple checks failure founder to successful founder to angel investor to investors. Don't write a check in one startup at least it should be four or five. What else? You enjoying the journey. Somebody is else. Somebody else is working for you. You are optimistic by nature. just to start. I think everybody and specifically people like us is going to see this journey from very closely. I think going to be a fun. Great. So let's take it forward. And so we have talked about past, present and let's go to the future. So asida Salvad panda. Salvad, you are writing your autobiography. I choose to be happy. Oh, wow, that's great. That's so deep and bang on. So I think this is what I say, problems will come if you've done good and I think it will come. Nobody can stop. You need to understand that this is a part of your journey and only when there are tough times will come. You'll enjoy the good times. Good times, yeah. But then I think whether team, whether validation, whether shortage of money when we say that when you have less money, you are more creative. So I think this is all about validation, making you refined, making the journey more exciting. Also sometimes telling you what mistakes you have done in your life. Choose to be happy is what is my definition. And life is not a destiny, it is a journey. So I think this is what are the two major key components which I would like to write about myself and to take it forward. Wow, that's great. That's such an amazing phrase you heard. I choose to be happy. Yes, I chose to be happy and good to go. So this is the last question which I'm asking and just so you can share some very quick tips or one major tip for any of the startup founder or anyone who is just starting or who is under the scaling, or just one tip. First tip is very clear. Don't run for money, don't run for valuation. Run for the right partners in the journey. Right partners. Okay. That's very important. That's the key for being successful. That's all. So. Thank you, Shasheel. And itana Mazara kayapse or Yezo environment or Mspur. Studio. It's so enriching, so energetic, so passionate. You are or voice of energy I could feel here in this room. So thank you for coming on the show and I'll be coming next week to Joh Pud and I'll definitely see your It park, your cafe and everything. Thank you, Akesh. I think it has been wonderful meeting you after so many long time and remembering those good times in the school and connecting to all these classmates. I think. Thank you so much for inviting me for the discussion. It gives you clarity, right? So it's not about you, it's all about us together. Thank you so much. You enjoyed the show. So that's why I made my show. Let's talk clarity. I completely agree. After the discussion, I am also getting a lot of clarity in my own definition. Let's be happy together. Yes. So thank you. And thank you for being on the show. That is the end of our deep conversation, so if you want any guidance, please feel free to contact Marwadi Catalyst on their website and LinkedIn. Also, you can contact Shushil Sharma or LinkedIn for any guidance. He will be happy to guide you. Also, please reach out to me, Rakesh Matriya, if you need any career guidance, if you want to transform your career, if you are having any time management issues, or if you are searching for life fulfillment purpose while doing a job, please feel free to contact me on Rakashfulfreya.com or on LinkedIn. Link is there in the description of the episode. Thank you for listening to let's talk clarity with Rakesh. Please subscribe or follow this podcast on your preferred platform so that you don't miss any important episodes. Have clarity. Listen clarity. And let's talk clarity. Let's talk clarity.