Many founders believe that fundraising is the only time to connect with VCs and that it's a binary yes/no conversation. From our experience, we see it as a journey. We encourage founders to reach out to us irrespective of stage, scale, or sector.
Like any other institutional investor, we have a structured investment process with thorough evaluation and deep dive review by our investment committee. We wanted to use this post to share the considerations that come up during those discussions.
1. Atomic Capital's value-add in the journey We don't rely on what founders can do for Atomic Capital - we explicitly discuss what Atomic Capital can do for the founders. For example, when evaluating a warehousing company, we could list down key unlock drivers like network density and tech integration.
2. Post product-market fit We have seen our playbook is most effective at a certain scale - not too soon and not too late. We like to partner with founders once they are able to demonstrate PMF.
3. Capital efficiency as the DNA We believe capital efficiency and unit economics are the DNA of the business, and we like to build strong robust scenarios to assess the return on capital deployed.
4. Team for professional marriage This journey is relatively long-term, and we believe it is a professional marriage - hence having the right mindset, value system, and cultural alignment is critical.
5. Consumer love We place emphasis on indicators such as NPS, retention, and consumer feedback. There should be a clear demonstration of why consumers love the product - a strong, product-first story that resonates with customers.
6. Alignment with Atomic Capital playbook/investment thesis We are chasing India's consumer in 2030 and believe middle India will drive most of the value. We get excited about specific themes we have discussed in previous posts, such as middle India powering future consumption growth.
7. Clear value unlock articulation We look for focused execution. For example, in one company we evaluated, the spray-and-pray approach across categories made it harder to see the path to value creation.
8. Right ownership Given we like to have sizeable skin in the business, meaningful ownership helps align incentives for the long haul.
These considerations shape our investment committee discussions as we look for partnerships where mutual value creation is clear. They help us identify opportunities with strong alignment and execution potential.
A few best practices to make the fundraising journey more efficient
- Do not just focus on the pitch - communicate the context.
- Have a solid grasp of your metrics so discussions can go deeper when needed.
- Avoid over-selling the future - build conviction through realistic plans.
- Build momentum in the process - continuous engagement and timely responses go a long way.
- Lead with a consumer-backed, product-first narrative.
- Respect the process - even basic hygiene like punctuality and reliable connections matter.
- Avoid artificial FOMO, especially with conviction-backed funds like Atomic Capital.
- Authenticity matters - speak to the audience while staying true to your story.
Raising capital is a strategic milestone, but the real work is building a great company. We’re here to partner with founders who share that mindset.
