Once the preserve of billionaires, startup funding is now opening up to ambitious professionals. Sushanto Mitra, Founder & CEO at Lead Invest talks about the vision, risks, and rewards of Lead Invest and why its founder believes the next decade belongs to India.
In India’s booming startup ecosystem, where new ventures emerge daily, one man’s journey stands out. From the classrooms of St. Stephen’s College to PwC’s consulting floors and the buzzing financial hubs of Mumbai, he had already lived several corporate lives. But it was his tenure at IIT Bombay’s incubator, SIGN, that reshaped his trajectory. Surrounded by budding entrepreneurs, he realized his role wasn’t just to advise or analyze it was to enable.
An Idea Born Out of Emotion
Leaving IIT Bombay was harder than expected. “I didn’t want to lose my connection with educational institutions,” he recalls. That emotional tug inspired what would become Lead Invest a platform designed to bridge startups with investors. Unlike traditional funds driven by profit motives, this vision began with nostalgia and transformed into a mission: democratizing startup investing for India’s middle class.
Breaking the Monopoly of the Wealthy
Until recently, investing in startups was a playground for India’s ultra-rich industrialists, celebrities, and high-net-worth individuals. Ordinary professionals, no matter how ambitious, were locked out. Lead Invest changed that.
By structuring its fund like a mutual fund for startups, it allowed smaller investors to pool resources, diversify across multiple ventures, and participate in opportunities once reserved for the elite. It was, in essence, the financial democratization of innovation.
Risk, Returns, and the Sidecar Strategy
Of course, startup investing comes with risks. Nearly half of new ventures fail in their first year. But as he explained, one breakout success can offset multiple losses. “If you invest in 10 startups and one gives you 20x returns, you’ve already covered the rest.”
To manage risk, Lead Invest relies on three principles:
- Diversification across multiple sectors and companies.
- Revenue Validation, backing only startups with paying customers.
- Sidecar Investing, where Lead Invest co-invests alongside bigger VCs, benefiting from their capital and guidance.
“It’s like a motorcycle,” he laughed. “They drive, we sit in the sidecar.”
Guiding a New Generation of Investors
India’s young professionals are eager to back startups but often for the wrong reasons. Many invest emotionally, supporting a friend’s idea or batchmate’s company. He warns against this: “That’s not investing, that’s charity.”
Lead Invest offers a disciplined alternative. By professionally evaluating companies and building diversified portfolios, it helps busy professionals invest strategically, not sentimentally.
The Art and Science of Picking Winners
Choosing startups, he insists, is both a science and an art. The science involves analyzing disruption, competition, and capital intensity. The art lies in judging founders their trustworthiness, resilience, and ability to weather setbacks.
“You’re not just investing in an idea,” he said. “You’re investing in people.”
Women at the Helm
One surprising statistic he highlights: women-led startups have higher success rates than those run by men. “They’re more empathetic, better organized, and retain talent more effectively,” he noted.
Recognizing this, Lead Invest has launched initiatives for women entrepreneurs and investors. By creating safe learning environments often led by female faculty the firm empowers women to ask questions freely in what has long been considered a male-dominated domain.
Beyond the Metros
With regulations limiting direct advertising, Lead Invest has turned to innovative outreach. It now works with distributors in tier-2 and tier-3 cities, bringing startup investing opportunities to professionals outside India’s major hubs. At the same time, its weekly Huddle Hours invite entrepreneurs to walk in and pitch ideas directly, ensuring no promising venture goes unheard.
India’s Defining Decade
Despite the risks, he believes there has never been a better time to invest in Indian startups. With GDP growth, a young population, and an army of tech professionals, the ingredients are in place for explosive innovation.
“The next 10–15 years are India’s golden window,” he said with conviction. “Zepto and Zomato wouldn’t exist without our engineers and innovators. This is India’s time.”