Introduction to Capitall
Q: Could you provide a brief overview of what your company, Capitall, is all about?
A: Capitall, as the name implies, is committed to making capital accessible to all, particularly targeting the underserved markets of small-scale businesses in India. India faces one of the largest working capital gaps globally, amounting to 400 billion dollars, and that is the market we are aiming to serve. Many institutions have been unable to address this issue due to various reasons, which we won’t delve into right now. Our solution is to facilitate access to working capital for these small-scale businesses by crowdsourcing funds from retail investors. In doing so, we create a thriving ecosystem where businesses can secure the capital they need while retail investors gain exposure to a new asset class, earning high fixed returns in the process.
Decision to Join Entrepreneur First
Q: What motivated you to apply to Entrepreneur First and what makes it stand out from other accelerators?
A: Entrepreneur First (EF) presents a unique approach compared to other traditional accelerators worldwide. It prioritizes people over companies, as evident when applying; you join as a ‘founder in residence,’ not simply a founder. This distinction underlines EF’s focus on the individual’s potential and capacity to innovate. Once in the program, you connect with an array of fascinating individuals, collaboratively exploring possible problems to solve. EF serves as a gateway for aspiring founders, offering a comprehensive three-month crash course on the entrepreneurial journey. This experience allows individuals to gauge their interest and commitment to the startup world. For those who decide to pursue building a company, EF provides invaluable mentorship and support. Importantly, if a venture demonstrates potential and performs well, EF stands ready to back it up with funding. It’s this unique combination of personal focus, collaborative ideation, and potential for support that truly sets Entrepreneur First apart.
Explaining the Application Process
Q: Can you walk us through the application process for Entrepreneur First?
A: The application process for Entrepreneur First is impressively straightforward from an applicant’s perspective, though I imagine it’s quite a complex task for the EF team. Initially, you’re required to submit a form filled with various questions. They probe into your motivations, what you believe your unique strengths are, your particular skill sets, and your background. This initial form is quite clear-cut. Following this, shortlisted candidates proceed to a personal interview stage, which is divided into two rounds. The first is a technical round, focusing on your skill set, career history, knowledge, and areas of expertise. The second round shifts the focus to you as an individual, delving into your character, motivations, and personal aspirations. They really want to get to the core of why you want to embark on this journey and what drives you. After successfully navigating through both interview rounds, you can expect to hear back from them within a span of two to four weeks. They’ll inform you whether or not you’ve been selected to join the upcoming cohort.
Q: Do you have any tips or advice for prospective applicants going through the Entrepreneur First application process?
A: I’ve got a crucial piece of advice for anyone navigating through the application process at Entrepreneur First. It’s imperative to stay honest and transparent throughout. Everything you include in your application is meticulously examined and will be discussed in later stages, especially during the personal interview. The interview acts as a double-check, ensuring that your application accurately represents you and that what you’ve shared holds true. Entrepreneur First has been around for years, and their team is incredibly experienced in identifying inconsistencies or embellishments. My most significant piece of advice would be to be genuine in your responses. Don’t attempt to portray yourself as something you’re not; there’s no need to embellish your accomplishments or skills. Entrepreneur First is more interested in your motivation to solve problems and build businesses than in your personal background or track record. So, remain authentic and honest. If Entrepreneur First is the right fit for you, and you for them, this approach will ensure that you derive the maximum value from the experience. They are in the business of fostering true potential and dedication. So, be yourself, and if it’s meant to be, it will work out wonderfully.
After Acceptance
Q: Can you walk us through what happens post-acceptance and describe the structure of the program at Entrepreneur First?
A: Once you’re accepted into the Entrepreneur First program, it’s a thrilling and fast-paced journey. I was part of a program focused on working professionals, though I know EF India has since expanded to include college students as well. The program is six months long, split into two phases: ‘Form’ and ‘Launch,’ each lasting three months. Even before the program officially begins, accepted candidates are added to a Slack group for pre-networking, helping everyone hit the ground running from day one. Entrepreneur First is all about condensing what would usually take years of networking into just a few months. In the ‘Form’ phase, participants network and start forming teams. The cohort typically comprises 20 business-background individuals and 20 tech-background individuals. The goal is to pair up and start working on meaningful problem statements. As a participant from a business background, I joined as a potential CEO looking for a tech co-founder. The pace is incredibly fast; you’re expected to form a team within a week, get feedback from mentors, and make quick decisions on whether to proceed or break up and try with someone else. EF celebrates both the forming of teams and the breaking up because it’s all part of finding the right fit.
By the end of the ‘Form’ phase, you pitch your idea to the EF team. If they see potential and decide to invest, you move on to the ‘Launch’ phase, which is exclusively for those who received investment. This phase is all about product development, market strategies, and essentially getting your startup off the ground. So, it’s a whirlwind, but one that’s structured to give you the best possible chance of success.
Q: Could you take us through how you met your co-founder, Pranav, and how the concept of Capitall was born?
A: My co-founder Pranav, the CTO of Capitall, has had a profound love for technology since his early teenage years. He’s been coding since he was 13 and has worked with some of the finest in AI and ML in our country. Our idea required extensive automation and machine learning capabilities. Pranav, with his rich background in technology and consulting, including being an official consultant for several national banks in the Middle East, was the perfect fit. He was interested in creating something within the BFSI (Banking, Financial Services, and Insurance) space. On the other hand, my passion was to build something beneficial for small-scale business owners, stemming from my personal background in traditional business. I was aware of the large credit gap in India, particularly for MSMEs, and wanted to address this issue. Pranav and I found common ground in our interests, and once we started collaborating, we realized we were very much alike as individuals. We brought complementary skill sets to the table; I filled in the gaps in his resume, and he did the same for mine. It created a very collaborative and synergistic partnership. Capitall wasn’t born from a single person’s idea; it was a collaborative effort. We started with a basic skeleton of an idea, brainstormed together, and after hours of discussion, we ended up with something completely different and more refined. It was like planting a seed and nurturing it together. The entire product, concept, and business model of Capitall was developed in collaboration, making it a shared passion project for both of us.
Q: Were you able to secure any funding through Entrepreneur First’s program?
A: We did receive funding through Entrepreneur First (EF). Capitall was part of EF’s portfolio, along with about six other companies from the sixth cohort in 2021. During the first three months of 2022, we were actively building our company using the capital provided by EF. EF invested a pre-seed cheque of $55,000 in Capitall. This amount was specific to that point in time, and I’m not certain if the investment amounts have changed since then. It was crucial funding that helped us lay the foundation for Capitall and start our journey in the fintech space.
Key Advantages of the Entrepreneurial Program
Q: Can you highlight the most significant non-financial benefits you experienced during the Entrepreneur First program?
A: There were three major benefits that stood out to me. Firstly, the program offered a wealth of perspective. Being in close quarters with incredibly talented and intelligent individuals sparked numerous ideas and discussions, enriching my outlook and understanding.
Secondly, the mentorship provided was invaluable. We had access to some of the top minds in the startup ecosystem, who not only shared their knowledge but also offered practical advice to help us grow. This was a unique advantage, as reaching out to such experienced professionals independently would have been a daunting task due to their busy schedules. Entrepreneur First made it possible for us to connect with them directly and receive their guidance.
Lastly, the Demo Day was a game-changer. With Entrepreneur First backing us, they had a vested interest in our success. This event provided us with an opportunity to showcase our venture to a wide array of investors, ensuring that the entire startup ecosystem, including venture capitalists, was aware of who we were and what we were building. These three elements combined contributed significantly to our journey, offering us resources and opportunities that went far beyond financial support.
Q: Do you have any enlightening stories from your time in the program, perhaps a moment of surprise or inspiration?
A: Initially, I held a strong belief in seeing things through once I commit to them, a mindset that was completely challenged during my time at Entrepreneur First (EF). Early on, I partnered with someone, and within just ten days, we received feedback suggesting we might be better off exploring other partnerships. My immediate reaction was defensive; I couldn’t fathom quitting something that seemed so promising. It felt like they just didn’t understand our potential.
However, this experience taught me a valuable lesson about personal bias. I was biased towards my co-founder and our business idea, potentially overlooking critical factors that could influence our success. When we eventually decided to part ways and I met Pranav, my next partner, everything clicked. I realized what had been missing and what we truly needed to build the business I had envisioned.
This was my moment of clarity: understanding that personal biases can cloud judgment, and being open to feedback is crucial when building a company. My experience with EF and the unique approach of ‘speed dating’ for co-founders taught me that unconventional methods can lead to finding the right business partner, and this realization was both surprising and immensely inspiring.
Current Status and Progress of Capitall
Q: Can you provide an update on how Capitall is doing today?
A: We’ve been in operation for the past 18 months and decided to go public with our product about half a year ago. Since that launch, we’ve managed to disperse over $100,000 in capital. We’re seeing excellent metrics across various aspects of the business, and it’s apparent that our users are really appreciating the product. In terms of finances, we’re on the verge of becoming profitable. We’re projecting that within the next three months, our cash flow will turn positive. It’s an exciting time for us. We’ve managed to sustain and grow in a very lean manner since our time with EF, without bringing in additional capital. Even though we had a few offers, we wanted to focus on building out a robust product and establishing positive unit economics right from the get-go.
I’m proud to say that we’re nearly there. We have new products in the pipeline, and as Capitall’s name suggests, we’re committed to ensuring that we provide ample capital for all necessary ventures. So, things are really looking up for us.
Q: Is Capitall operating exclusively in the Indian market or has it expanded internationally?
A: Currently, our main focus is on addressing the borrowing side within India, where there’s an enormous credit gap of about 400 billion dollars. It’s a colossal challenge that can’t be tackled by just one company or individual. It requires a collective effort, with various players contributing to healthier competition and collaborative growth within the sector. Our commitment in the coming months is to intensify our efforts in the Indian market. However, it’s worth mentioning that on the investment side of our platform, we’ve attracted interest from a global audience. We have investors from as many as four different countries, including the US, the UK, UAE, Qatar, and Muscat. They are actively investing capital in Indian companies through our platform.
Given the short tenures of our investment products, these international investors can realize their returns quite quickly, which helps in building credibility for our platform. Looking forward, we are eager to expand and tap into the overseas investment space even further, as it represents a significant untapped opportunity in the lending domain.
Q: What growth channels has Capitall explored or utilized so far?
A: Since our inception, and after receiving an initial funding of 55k from Entrepreneur First, we haven’t raised any additional capital. Our team, comprising 7-10 people, has been operational for 18 months. In this time, we’ve been extremely judicious with our expenses, ensuring that our funds are allocated efficiently. Impressively, we’ve managed to onboard over 1400 users to Capitall, all through organic growth channels. Not a single dollar has been spent on customer acquisition. Our users have found us and joined us without any paid marketing efforts from our end.
We’ve built a robust network of brand ambassadors. Alongside this, we’ve leveraged community-level marketing and product-level growth strategies to boost our user base. Our product itself has a very strong referral engine. A striking 60% of our investors end up bringing someone else to the platform. This speaks volumes about the virality of our service and the trust our users have in us. It’s a clear indication that word of mouth has indeed been king for us, driving our growth and helping us expand our user base without incurring additional costs in customer acquisition.
Tips for Prospective Entrepreneur First Applicants
Q: What advice would you give to founders considering applying to Entrepreneur First?
A: Reflecting on my journey and observations of other companies in my batch, and subsequent batches at EF, I’ve noticed a common trend. There are quite a few individuals who apply to EF with a predetermined mindset. They come in with the intention of continuing their entrepreneurial journey with their existing co-founder while being part of EF.
However, I’d like to emphasize that EF is a unique platform, and it works best when you embrace its uniqueness. My advice to potential applicants would be to come into the program unattached, free from any previous commitments or collaborations. This is crucial because bringing baggage from past ventures can complicate the process and potentially hinder your progress.
There are numerous accelerators out there willing to provide cash and mentorship to founders who are already part of a team and are in the process of building a company. But EF stands apart. To leverage the full extent of what EF has to offer, it is preferable to enter the program with an open mind, ready to connect and build something new with a different set of individuals.
It’s also important to be aware that as of now, EF operates in only six countries. So, if you’re aiming to reap all the benefits that EF has to offer, being physically present in the city where EF operates is a necessity. While EF does have a global presence, the initial phase of building a company with a new co-founder requires in-person interaction.
In conclusion, come to EF unencumbered, ready to embrace the journey, and be prepared to be physically present in the city where EF operates. This approach will make it significantly easier for you to find the right partner and fully commit to the entrepreneurial journey ahead.