What is your Mission?

At a recent interaction I had with Agribusiness Incubators, I was asked a question, or rather made an offer. The offer was - Can we join you when you make investments in Agri Startups?

I was clear in my response. We will be very happy to, and we do have incubators investing alongside us in our investments but, think about it. Is that your mandate?

Most incubators have been provided grant funds (up to 5 Crore) to invest into equity of Startups that they incubate, to take them to the next level of business. So, from MVP (minimum viable product) to commercialization is the typical space these funds are intended to be deployed. This is undoubtedly a space having a lot of uncertainties and thereby risks. It is for this very reason that these ae grant funds.

Instead of deploying these funds for the intended purpose, incubators especially in quasi-government institutions take the safe route of preferring not to make investments, or tagging along with others who they believe have the wisdom to make the right choice. This obviously leads to a supply side drought in a market that is already starved of funds. Unless the Incubators build the funnel of businesses for the investors, how will the virtuous cycle be complete?

I had to therefore highlight the fact that the mission of each institution is vastly different, and therefore trying to tag along with those who have a mission of making money for their investors will not be the right way. I hope the message was received and understood,

The scene with the so-called global philanthropies is much worse. After getting massive tax exemption in their country of origin, they behave no better than commercial profit driven funds when operating in countries like India, while nobody seems to bother and look askance.