Investors value integrity, honesty and self-awareness in founders

Investing in Pilgrim was one of the easiest decisions for me.

And it has also been equally rewarding. This article is about why.

In 2013, I approached Anurag, my IIT Bombay senior with a pitch to raise capital for Four Fountain Spa. These were the early days of Anuradha and I building Dexter Capital Advisors.

But, he gently declined my proposal and instead asked me to help him with a small debt which we did with a venture debt firm. Well, his gentle decline was not because he had a better deal or he had other advisors to help.

Anurag told me, the spa business may look like a glamourous services business, it's not a business meant for VCs who would typically like to see hyper-growth. Thus, he declined.

That day, he won my respect with his clarity about the business as it was. But, the bigger draw was his integrity which didn't allow him to mislead anyone for incoming investor money.

That was the day when I began seeing him as more than just another senior or business builder. It was a bond birthed out of pure respect and admiration.

Seven years down that led to a beautiful association. As Anurag got into building Pilgrim with Gagandeep M., we got to be one of the first investors even before the launch of the website/products.

Here again, Anurag was very clear from Day 1-

"Please don't ask for any MIS or anything for 6 months as I'll be busy building my 1st set of products, picking my manufacturers/suppliers, and figuring out my sales channels."

He was crystal clear, he wouldn't spend an iota of those early days on building spreadsheets for investors. His priority was to lay the foundation of the business, which investors had backed with their money.

Even today, he always ensures straight fundamentally-thought communication, just like that.

Integrity, honesty and self-awareness like Anurag's are incredibly rare, and deeply valued by investors like us.

It sparks trust and conviction, that the founder has clarity in what he is going to spend his time and energy, and the investor's capital on.

Mostly, this is all that an investor needs from the early-stage startup founders they back. Because it's good enough to ensure peaceful nights.

This brings me to the biggest takeaway:

Early-stage investing is full of uncertainty. Founders who reduce that stress are worth their weight in gold.