Money May Not Be Around, But Mentors Will Be: Mohandas Pai 

“In times of crisis and dilemma, mentors can be great teachers for founders, but no one can claim to be a great mentor. It’s a relationship you need to build over time,” – Mohandas Pai, cofounder and chairman, Aarin Capital

The former Infosys CFO has a unique point of view when it comes to Indian entrepreneurs and founders, as someone who has seen the startup ecosystem grow and flourish from the very early days.

About mentorship, Pai believes it’s a core responsibility of those who have seen the ecosystem come up from scratch. “We are seeing so many first-time founders and they often think being a founder is about being a cowboy. But that style doesn’t work and that’s when they feel the need for a mentor,” Pai said ahead of India’s national Teachers’ Day.

As the CFO of Infosys from 1994 to 2006, Pai brought a ton of experience to the tech industry when he became an active angel investor and then founded Aarin Capital. In his opinion, the Infosys experience is a critical asset for him in his role as mentor for the founders he has backed.

Besides Aarin Capital, Pai also launched Exfinity Ventures and has been a key advisor for 3one4 Capital as well as Ideaspring Capital. Over the years, the Padma Shri awardee has been a key investor in startups such as edtech giant BYJU’S, Shiprocket-owned Wigzo, Pocket Aces, Licious, Faircent, among others.

However, often founders believe that investors are overstepping the line when it comes to mentoring and guidance. How does Pai bring in the balance in his approach?

“It’s an organic relationship and as someone who invests in the early stage — the first cheque — I have to be available when the founders need me. Of course, I have to emphasise that I cannot take the decision for a founder, but we can explain the possibilities and potential implications of the decision,” he added.

While clarifying that VCs don’t run companies, Pai says that often founders don’t have the right approach. They believe that investors will take the company away from them if there is a wrong decision or some issues.

“Founders are very reluctant these days because such is the market. They have to remember that even if the market bounces back, the money may not be around, but mentors will be,” Pai, a founding partner at Aarin Capital added.

Pai stressed on the fact that investors across stages have to add value to their relationship with founders. It’s not just about the money or the cheque being written, but also what kind of trust is built over time.

Of course, besides writing the seed stage cheques, Pai is a director on several boards. Most recently, he joined BYJU’S as part of the advisory council for the company. Pai was one of the edtech decacorn’s early backers and has returned to mentor the company’s cofounder and CEO Byju Raveendran at a critical time.

While he did not comment directly about his role at the edtech giant, his overarching view is that founders need help at all stages of their company’s life cycle.

“At a $50 Mn valuation, the kind of help and advice they [founders] need is different than at a $500 Mn or at a $5 Bn valuation. But even at that stage, founders are not superheroes. Everyone learns on the job, and to execute fast growth you need the helping hand of someone with the right experience,” Pai added.