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I really look for solid business models, says actor Kunal Kapoor Don't treat it like a lottery.

By Sneha Banerjee

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Entrepreneur India
Kunal Kapoor, Bollywood Actor

Before Ketto happened, actor Kunal Kapoor felt that the social space in India was very serious and had a lot of gravity attached to it, whereas in the west people were having a lot of fun while doing charity.

Ketto Bollywood Actor Kunal Kapoor, Varun Sheth and Zaheer Adenwala.

"I don't really invest in companies depending on their valuations. I really look for solid business models. I think it's really important to invest in companies that have a solid revenue stream as opposed to valuations. Those are things you can't predict. But when you meet an entrepreneur, I think you get a sense of what he is attempting to do and the kind of business he is attempting to do. So I think it is better to invest in a solid business model," said Kapoor.

Advice for celebrities investing in startups

First of all, I don't think you should treat it like a lottery. I think that's really important because I think at some levels people treat it like a lottery. We will invest in 10 companies and profit will become 10X, that's not necessarily doesn't happen, you are lucky if it does. Like I am saying, don't treat it like a lottery, invest in solid business models.

Secondly, for me what is really important is the person that is leading the operations. You could have a great idea, but the person that's leading it might not be that dynamic, may not be like he has the potential to build a big business. So I think it's very important to meet the entrepreneur and sort of understand what he is all about and what he is trying to do.

The third one is also I think is to get advice from a lot of people before investing in a company. Usually what I do is sort of bounce it off to few people who have been in the industry for a long time. Something I like. And I get different perspectives from a lot of people before I go ahead and invest in a company.

Sneha Banerjee

Entrepreneur Staff

Former Staff, Entrepreneur India

She used to write for Entrepreneur India from Bangalore and other cities in South India. 

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