First, krishna maggo he may seem like a regular 16-year-old student. Except he’s a second-time entrepreneur who currently runs an online fundraising platform for startups that competes with companies like AngelList, Venture Catalysts and LetsVenture.
Krishna, a Grade 12 student from Delhi, ranin stealth mode for about six months before formally launching operations in April 2022. Within a month, it had onboarded 10 companies that had raised at least one Pre-Series A or Series A fundraising round.
Among them, three are already active and raising funds through the platform of a group of 10,000 angel and marquee investors. Some 50 more startups, including some backed by investors like Mumbai Angels, Ivy Capital and Deshpande Startups—are on the waiting list.
Sateeq, which means ‘precise’ in Hindi, recently raised an undisclosed sum from investors including Periwal of HimanshuFounder of Unlu; Sarthak Goelfounder of Y Combinator-backed InVoid; Vaibhav Jalan, Vice President of Smallcase; Y Amitesh Sinhaformer board member of Linkedin India.
“Sateeq solves a real problem on both the demand and supply sides through technology,” says Amitesh, also a partner at SIMA Funds. “On the demand side, less than 0.1 percent of retail investors are able to invest in alternative assets, such as startups. On the supply side, less than 5 percent of startups are able to raise funds from investors. Sateeq solves this unmet demand by using technology to satisfy these stakeholders.”
An early vocation
Krishna’s entrepreneurial journey took root when he came across books on business and entrepreneurship as a sixth grader.
“Some of the first books I read were Rich Dad Poor Dad, Y Think and Grow Rich. Rather than reading books, he used to watch many YouTube videos on business case studies and stories from national and international business leaders such as McDonald’s, Sachin Bansal and Ritesh Agarwal. They made me want to explore entrepreneurship one day and I honestly wanted to become rich and powerful,” recalls Krishna.
“But now I have a new vocation: I want to build something.”
In 2021, when his 10th board exams were canceled during the second wave of the COVID-19 pandemic, Krishna decided to use his free time to build his first company, growwventurean angel investment platform.
From April to August 2021, he tirelessly reached out to angel investors via email and LinkedIn. managed to get on board 200 angel investors but it was difficult for him to gain the trust of investors in the platform. He also realized that the existing group of angel investors did not need another platform to invest in companies. After running GrowwVenture for about five months, Krishna decided to close the shop.
However, he turned his attention to retail investors who might not have the necessary capital to join traditional platforms as angel investors.
“Angel investing is accessible to a higher class of society,” says Krishna Your history. “Traditional investment platforms require investors to invest a minimum of Rs 2-3 lakh, and require startups to have an annual turnover of around Rs 2 crore before raising funds from major investors.”
Krishna started building Sateeq, which enabled ordinary people to become angel investors by injecting as little as 5,000 rupees in startups.
“Krishna may be 16 years old, but his determination, insight, ability to drive a business, and his thought process as an entrepreneur are far better than many 30-year-old entrepreneurs,” says Himanshu, co-founder of Unlu, a networking platform for entrepreneurs. celebrities and fans.
Sateq: How it works
Sateeq follows an invitation-only model for the incorporation of new companies. Krishna’s Team of 10 follows a three-step process to verify startups before registering them. This includes the exploration and vetting of a startup by investors associated with Sateeq, followed by an analysis of investment opportunities. The final stage involves contacting an outside agency to obtain a due diligence report on the startup.
Startups on the platform connect with investors to raise community funds based on Mandatory Convertible Debentures (CCDs) and Community Stock Option Funds (CSOPs)—two tools startups often use to raise capital.
CCDs can be converted into shares after a specified time. Since their convertibility is a perceived advantage and depends on trigger events such as initial public offerings, mergers, buybacks, or secondary acquisitions by new investors, investors are willing to accept a lower interest rate to purchase convertible bonds. Currently, two companies in Sateeq are raising funds through CCD.
One of the drawbacks of CCDs is that, according to the rules established by the Ministry of Corporate Affairs, companies cannot raise funds from more than 200 investors using this tool.
This is where CSOPs come into play as an alternative. Like Employee Stock Ownership Plans (ESOPs), Sateeq allows early-stage startups to enter CSOPs to assign stock options to retail investors in exchange for a subscription amount or investment money. In this way, companies can raise funds from as many investors as are available, as there is no limit to the number of investors that can participate. Currently, a startup on Sateeq is using CSOP to raise capital.
Sateeq operates under the guidelines prescribed by the Companies Act 2013. Unlike traditional angel networks, the platform does not facilitate investments using the SEBI Alternative Investment Fund Structure and is therefore not under the control of the capital market regulator.
For each fund raised, Sateeq receives a transaction fee from investors amounting to 2 percent of the money invested. Startups pay 2 to 5 percent of funds raised. In addition, investors must pay a 2 percent exit fee.
The platform also facilitates private financing deals and campaigns with a select set of investors. The platform does not charge any capital.
Sateeq is currently in its pre-revenue stage.
Challenges of a teenage entrepreneur
Krishna Maggo’s journey as an entrepreneur evokes a resemblance to another former precocious teenager now among the country’s richest: Ritesh Agarwal, who dropped out of college to start Oravel Stays, now OYO Rooms.
For Krishna, his greatest support has been his parents. However, even they hesitated in the early days.
“Coming from a middle class background, my relatives and parents wanted me to find a job. Some suggested to my parents that they not let me venture into the business world until I completed my graduation,” recalls Krishna.
The hesitation also comes from Krishna’s father, who had tried his hand at business and opened a restaurant but failed.
“My father’s failure in business is one of the reasons my parents didn’t trust me to explore entrepreneurship. They had witnessed a massive investment loss. But once they saw Sateeq attracting the attention of some really big names, they realized he was doing something right,” adds Krishna, pressing the time to speak with Your history after returning from school.
That is another important challenge: schooling.
“It is very disheartening to see that our traditional education system does not promote entrepreneurship at any stage,” says Krishna. “Although I am making headlines as a young entrepreneur, there seems to be very little support from my school in terms of helping me run my studies and business.”
When schools went online during the pandemic, he was able to pay equal attention to studies and Sateeq. With schools reopening now, you often have to compromise your attendance and curriculum.
Krishna’s focus, for now, is to close as many deals as possible and grow Sateeq’s network of investors to 100,000.
It is already looking further afield, to harness the vast potential of a rapidly evolving online universe. Krishna plans to explore opportunities in Web3 and introduce asset-backed tokens in investments. That, he says, is key to allowing investors to have fractional investments in startups through asset tokenization.