“My First Startup Investment”: What Every New Investor Should Know

Stepping into the world of startup investing is exciting - but it can also feel overwhelming. If you're a first-time investor wondering where to begin, you're not alone. 

In fact, many successful investors today started with similar doubts. 

In a recent episode of our podcast “The Next Big Bet,” we spoke with Akhil Yajaman, a corporate lawyer and first-time startup investor, who shared practical and grounded advice that every new investor should hear.

1. Treat Startup Investing as an Asset Class - But With Caution

Akhil emphasizes that startups are just another asset class, but unlike listed equities or mutual funds, startups are high-risk and high-reward. You’re investing in uncertainty. So before you begin, assess your risk tolerance and decide what percentage of your portfolio you’re comfortable allocating to such investments.

“I treated it as just another asset class… you always keep learning. The idea is not to miss out on it.”

2. Don’t Chase Returns - Focus on the Founder

The returns will come later, or they may not. That’s the game. But your biggest clue as a new investor is the founder. Akhil’s first question to any founder was about how previous funding was used and whether it was aligned with their pitch.

Look for founders who are clear on why they’re building something, how they plan to do it, and who demonstrate accountability.

“Ultimately, it is a human being that runs the company. If you don't understand the human before understanding the business, it doesn't really make sense.”

3. Start Small, Start Thoughtfully

Thanks to platforms like Creddinv, the entry barrier is lower. You don’t need to be a millionaire or a VC partner. But even a ₹5 lakh investment is meaningful, so do your homework. Use the following documents to do basic due diligence, and verify publicly available information too for credibility.

“Ask for:

• Pitch decks

• Financials

• Cap table

• Market opportunity

• Intellectual property (if applicable)”
  
  

4. Ask the Right Questions

Questions aren’t just for clarity, they test the founder’s transparency and thought process. Here are some of the questions Akhil asked before investing:

• “Why did you raise your last round?

• Was the capital deployed as per plan?

• How do you plan to use this round of funding?

• What’s your business model and market traction?

• Do you have defensibility in your product?”

5. Balance Data with Gut Feeling

Startups often don’t have 10-year track records or consistent profits. While documentation and research are essential, your intuition plays a role too.

“If I take a decision based on good research and gut feeling, it’s my decision. If it goes wrong, I’m responsible.”

6. You Don’t Need to Be a Silent Investor

Some investors write the cheque and step back. That’s fine. But many prefer to be a part of the journey offering expertise, insights, or simply staying updated. Being available when needed, without overstepping, builds strong relationships with founders.

“Eventually I want to understand the business and maybe offer help. You need to know where your role begins and ends.”

7. Be Patient - Wealth Takes Time

Startup investing is not a quick-return game. It can take 5–10 years or more to see outcomes. But the thrill is in the journey, not just the destination.

“Wealth doesn’t come overnight. You trust the founders. Let them build.”

Final Thought

Startup investing is about being informed, curious, and open to learning. As a new investor, if you walk in with humility, clarity, and a willingness to stay involved, you’re already ahead of the curve.

Platforms like Creddinv are here to make this journey smoother, offering access, transparency, and support for seasoned and non-seasoned investors alike.