Meet Venture Crafters, a micro venture capital (micro VC) firm where ex-founders are looking to redefine early-stage investing in South and Southeast Asia. In this candid conversation conducted over email with founding partners Abhinav Krishna, Ayush Bharti, and Ivy Huq Russell, we get an inside look at how their experiences as entrepreneurs shape their unique "founders first" investment approach, everything Micro VC, how VC makes investment decisions, raising money, and building successful companies.
This interview is particularly valuable for:
The partners share refreshingly honest perspectives on everything from Venture Crafters thesis to common founder mistakes to their hands-on investment philosophy to what separates successful companies from the ones that fail.
You'll learn how VCs generally make investment decisions, the most underrated founder traits, what makes a great pitch, what VCs look for in startups, why the future belongs to AI-native companies with lean teams, why they're not afraid to get calls when things aren't going well, and how they're democratizing access to angel investing.
What makes this conversation special is the distinct position of Venture Crafters partners. They're not just investors writing checks, but former founders who've been in the trenches themselves. Their insights provide a deep understanding of both sides of the table, offering a unique lens on building successful startups in emerging markets. Please enjoy our conversation with Abhinav Krishna, Ayush Bharti, and Ivy Huq Russell.
The most underrated quality in founders is humility, as it fosters openness to feedback, continuous learning, and stronger team collaboration, all essential for sustainable growth. - Abhinav Krishna
Future Startup: Tell us about your background and your path to what you are doing today. What inspired you to start Venture Crafters?
Abhinav Krishna: Think of Venture Crafters as a team of entrepreneurs for entrepreneurs, building up startups in the way that founders need most.
All the three partners of Venture Crafters are ex-founders. Our background as ex-founder include founding start-ups and/or helping scale fast growing start-ups (e.g. Deel, KeyReply, Intelage, Maya, OurHealthMate etc).
Venture Crafters was born from a desire to combine our passion for entrepreneurship with a mission to support other founders in a hands-on way. Our goal is to create a model that could provide startups not only with investment but also with the resources, expertise, and networks they need to succeed.
Ayush Bharti: The partners at Venture Crafts are all former founders. We have extensive experience in building companies from inception, scaling them up, and achieving exits.
Additionally, we have dedicated significant time to mentoring, serving as mentors, and investing in companies that have traversed the same journey. Through this experience, we have identified common pitfalls that companies we mentor and collaborate with often encounter.
We believe that by leveraging our expertise, we can assist these companies in avoiding these pitfalls and maximizing their chances of success.
Our goal is to establish a micro venture capital firm that goes beyond mere investment and exit strategies. Instead, we aim to actively engage with founders, providing them with hands-on guidance and strategic support to execute their vision.
By integrating all the lessons learned from our experiences, we strive to enhance the probability of success for the companies we mentor and work with.
Ivy Huq Russell: Similar to Abhina, the inspiration came from being founders ourselves. We work on a founder first approach. One of the things we look out for is that founders are not getting squeezed especially when they start out like on their cap tables, service and/or b2b agreements. We have seen that they eventually get very good at these but initially they need a solid sound board and we are that for them.
My personal goal is to democratize angel investing from women VC and LPS to women founders by giving them access to deals, lower the barrier to enter, and build confidence through education and peers in the women's investment network. That's why I am so proud of the work we are doing at BWIN.
Future Startup: What was your thesis when you started Venture Crafters? How has your investment thesis evolved since you began?
AK: Venture Crafters was born from a desire to combine our passion for entrepreneurship with a mission to support other founders in a hands-on way. Our goal is to create a model that could provide startups not only with investment but also with the resources, expertise, and networks they need to succeed. We continue to follow a simple thesis.. We are founders and Venture Crafters is for founders.
AB: Initially, our primary decision-making factor was the founding team and their early traction. While these remain central pillars, additional criteria have emerged. For instance, we have placed greater emphasis on the business model and distribution, which often hinder the company’s growth.
As we consider the role of AI, we are witnessing a significant transformation that will enhance velocity, quality, and cost-effectiveness in product development. This trend will accelerate, leading to a heightened importance of distribution. Consequently, the power dynamic between product development and product distribution will shift. To address this, we are assisting our portfolio companies in maximizing their product development capabilities through AI and strategically building a distribution pipeline for our portfolio companies.
Ivy Huq Russell: Our primary investment thesis is centered on supporting founders in emerging and developing markets, testing the product extensively in those markets with a strategic focus on then facilitating their entry into the U.S. market. Recognizing the U.S. as a significant growth opportunity, our partners, Abhinav and Ayush, leverage their extensive market knowledge and established distribution channels to drive this initiative effectively
Future Startup: What led you to focus on the micro-VC model specifically?
AK: The micro-VC model appealed to me because of the hands-on, founder-centric approach it allows.
After working with startups both as a founder and in leadership roles at scaling companies, I noticed a gap in early-stage support, especially in regions like South Asia and Southeast Asia.
Many startups struggle to access not only capital but also the mentorship and strategic guidance needed to navigate their first phases of growth.
Traditional VC models are often focused on high growth and fast returns, which can push startups towards aggressive scaling before they’re ready, sometimes at the expense of foundational stability and market fit.
With a micro-VC model, we can invest smaller amounts but play a much more active role, which aligns well with the venture studio approach we take at Venture Crafters.
AB: One of the fundamental principles behind establishing a fast and agile company e.g. startup is to fail fast and early. The objective is to have as many shots on goal as possible. Not only do we advocate this approach for the companies we invest in, but we also adhere to it ourselves. This is one of the reasons why we prioritize the micro VC model, which enables us to maintain agility and rapid progress, allowing us to test our hypotheses, learn from them, and enhance our strategies.
The second reason we focus on the micro VC model is based on market observations. There appears to be a void for extremely early-stage companies with minimal traction and limited product offerings e.g. an MVP. We recognized the opportunity to address this gap in the market.
While there are quite a few accelerators and seed-stage investors, over the past few years, their expectations for the traction they seek in the companies they invest in, have significantly increased. Consequently, this has left a gap for super early-stage companies that are just beginning and have minimal traction, perhaps with an MVP and some initial success.
IHR: To add to the above, we like the diversification part. It helps to eventually have a diversified portfolio, which can mitigate risk and increase the chances of identifying successful companies. Plus the three of us are deeply passionate about catalyzing innovation - as we know, early-stage companies that are not yet ready for larger funding rounds, this model helps us to test and iterate early innovation in regions or sectors.
Future Startup: How does your prior experience influence your investment approach?
AK: My prior experience deeply shapes my investment approach, especially in terms of being both empathetic and practical with founders. Having been a founder myself and led startups through various stages, I understand the pressure and uncertainty that founders face, along with the resilience and creativity required to succeed.
This perspective helps me connect with founders as partners, not just as an investor, making decisions that support their long-term vision rather than just quick returns.
AB: Our experience of both being investors and founders has deeply shaped our investment approach.
As founders, one of the things that we realized is the investors that we built the closest relationship with and who had the most outsized impact on the success of the company were those investors who were hands-on, who are always there when you messaged them or call them who you could reach out to for help, for introductions, for ideas, for brainstorming. And then other investors only want to hear good news.
I wanted to be an investor where the founders call me when things aren’t going well and then they need help. Because there are a lot of investors in the market who only want to be reached out to when things are going great so they can be given wonderful updates of the brilliant progress the company is making. We are different.
IHR: I think the biggest is we are all ex- founders. Our attitude is more compassionate versus just writing a cheque or taking credit for good work that founders have actually done.
Being an ex-founder helps me to understand that our approach as investors with founders is of patience and being SSB ( Solid Sounding Board). To understand building and scaling companies takes time, tenacity and focus. My experience has helped me setting realistic expectations with founders regarding growth and timelines, enabling nuanced risk assessments so that we all can be on the same page from day 1.
Future Startup: What is your core investment thesis today?
AK: Our core investment thesis centers on founders' first attitude. Empowering early-stage startups in South Asia and Southeast Asia through strategic, hands-on support and capital, focusing on founders who prioritize sustainable growth and strong market alignment.
AB: Here’s what I think the future looks like—AI native companies will unlock huge B2B potential. Teams will become smaller and more agile, with individuals assuming roles that were previously considered separate. This will enable companies to target niche markets that were previously economically unfeasible, but will now become viable opportunities. Distribution will become a pivotal factor in determining success.
IHR) Similar to what my partners said, we are Founders First VC and it will always remain so. Of course, we have our ROIs and KPIs we have to fill and for that, we follow a typical VC structure. We are investing today for that future.
Future Startup: What are your typical investment parameters i.e. cheque size, stage, geography, etc?
AK: South Asia and SouthEast Asia. 25K per check. Generally prefer 1st Check into the company.
Future Startup: Which sectors do you focus on and why?
AK: We love B2B and Enterprise SaaS but are not married to that idea.
AB: Prefer B2B & Enterprise SaaS so that we can leverage our distribution and build it out further.
Future Startup: How do you differentiate yourselves from other micro-VCs?
AK: From day one, we’re helping founders tackle foundational challenges like market fit, product development, and go-to-market strategy on a very one-on-one level allowing them to focus on innovation without getting lost in logistics or scaling prematurely.
Our focus on South Asia and Southeast Asia also differentiates us. These regions present unique opportunities and challenges that require deep local insights, connections, and understanding of regulatory nuances. Having worked extensively in APAC markets, we offer specific expertise and networks that many other micro-VCs don’t.
Future Startup: What are the key criteria you look for in potential investments?
AK: We look for founders with deep market insight, resilience, and a clear vision. Founders who are building solutions with a focus on customers' pain points and problems within South Asia and Southeast Asia.
Future Startup: Could you walk us through your due diligence process?
AK: We take 2 weeks to finish this whole process:
Initial Evaluation: Review pitch materials, financials, and the business model for alignment with our criteria.
Founders’ Calls: Conduct multiple calls focused on understanding the idea, growth projections, and anticipated challenges, assessing founders' vision and adaptability.
Final Review and Decision: Consolidate insights and make an investment decision based on alignment with our investment thesis.
Future Startup: What are common red flags that make you pass on deals?
AB: Common red flags are - moving slowly, building things first and looking for market later, inflexibility and inadequate team building
Future Startup: How do you evaluate founding teams?
AK: We evaluate founding teams based on their market insight, adaptability, resilience, and complementary skill sets essential for executing their vision.
AB: On most days what matters are market insights and their ability to execute. When things get tough what matters are resilience and adaptability.
Future Startup: What metrics do you consider most important at different stages?
AK: We prioritize market validation and founder-market fit at the early stages, unit economics, and customer acquisition at the growth stages.
What excites me most about the future of venture capital is the potential for innovation-driven investments to address global challenges
Future Startup: How large is your current portfolio?
AK: We are quite new but we already have 2 companies in our portfolio and the 3rd one is joining by the end of November.
Future Startup: What's your approach to supporting portfolio companies?
AK: Our approach to supporting portfolio companies involves providing strategic guidance, operational resources, and fostering connections within our network to help them scale effectively and sustainably but we don't stop there…. We give our sweat and we check in with the founders regularly to ensure they are executing and reaching their north star metrics?
Future Startup: How do you handle follow-on investments?
AK: At Crafter Venture, follow-on investments are guided by a structured approach to maximize returns and support high-potential startups. First, we set clear performance benchmarks, assessing revenue growth, user acquisition, and product-market fit before reinvesting. Startups showing substantial progress in these areas, particularly in market expansion and scalability, become strong candidates.
Follow-on funding aligns with the company’s stage: we prioritize early scaling capital for emerging traction and growth acceleration for revenue-generating startups.
Additionally, we support fundraising efforts by connecting startups with co-investors, enhancing their narratives, and validating business models to increase their chances of successful rounds.
Finally, we monitor each startup closely to refine our exit strategy, using staged exits or secondary sales when appropriate, ensuring our investments yield solid returns while managing risk.
Future Startup: What have been your biggest learning experiences from failed investments or investments that you decided to pass?
AK: From failed or missed investments, several critical lessons emerged. First, market timing is essential; even the most promising ideas can falter if the market isn’t ready. Investments that failed often did so because they were too early, underscoring the need to gauge timing carefully.
Another key insight is the importance of founder resilience and adaptability. Startups with adaptable leaders who could pivot and stay focused on long-term goals managed challenges more effectively, making founder assessment crucial in decision-making.
Additionally, I learned that scalability must be validated beyond initial traction; some investments had early wins but lacked the infrastructure to scale sustainably.
Lastly, passing on potential winners taught me the importance of reassessing criteria as markets evolve, ensuring promising opportunities aren’t missed due to rigid filters.
Future Startup: What's your typical engagement model with founders?
AK: Our typical engagement model with founders combines hands-on support and strategic partnership, offering resources and guidance while empowering them to lead their vision.
Future Startup: How do you add value beyond capital?
AK: We add value beyond capital by offering operational expertise, strategic guidance, mentorship, and access to a robust network of industry connections to help accelerate growth.
Future Startup: What are the most common mistakes you see founders make?
AK: The most common mistakes founders make include underestimating market validation, neglecting customer feedback, not speaking regularly with customers, and failing to build a strong, complementary team.
IHR: We have spoken to several startups in various stages and I agree with Abhinav that one of the major ones I see is the Founders/Founding Team not taking nearly enough customer feedback ( when building the product), not talking to customers enough for feedback about their pricing or services (growth and revenue stage).
The second one for me would be “ lack of focus” and as an ex-founder I can relate to it but it is very important that Founders surround themselves with a team, advisors, and investors who will remind them to focus
Future Startup: What are the common traits of great founders?
AK: Common traits of great founders include adaptability, strong vision, deep market insight, and the ability to inspire and lead a diverse team.
IHR: One of the top ones for me is Customer Focus. They deeply understand their customer needs and their customer's pain points and build and scale products that address them. And the second related to that is endless resilience and tenacity. We all know in the Founders world that we will hear more “no” than ‘yes” so building that resilience is key
Future Startup: What advice would you give to first-time founders?
AK: My advice to first-time founders is to prioritize market validation, seek feedback early and often, and build a strong, adaptable team to navigate the challenges ahead
IHR: A. Build a strong second in line. B. Speak to customers from day one. C. Similar to Abhiav, test, and iterate early and often.
Future Startup: How do you view the current startup investment landscape?
AK: At Venture Crafters, we see the current startup investment landscape as cautiously optimistic, with a notable shift towards selectivity among investors amidst economic uncertainties. While venture funding has decreased significantly in recent years, certain sectors like enterprise software, sustainability, and AI-driven technology are still attracting substantial capital, suggesting opportunities for innovative startups that can demonstrate strong leadership and customer focus
Future Startup: What sectors or trends are you most excited about?
AK: We are excited about B2B softwares (SaaS esp) and AI driven solutions esp focussed for South Asian markets.
Future Startup: What emerging technologies or business models are you watching closely?
AK: I'm closely watching AI-driven automation in industries like healthcare, logistics, and finance, as it has the potential to streamline operations and unlock new efficiencies. Decentralized finance (DeFi) and blockchain applications also hold promise, particularly in creating secure, transparent ecosystems for global trade and health data.
Sustainability-focused technologies, including carbon capture and green energy solutions, are gaining traction and align with evolving consumer values.
Additionally, subscription-based and platform-as-a-service (PaaS) models continue to transform traditional business approaches, allowing more flexible and scalable operations. These areas offer significant potential for growth and disruption across global markets.
Future Startup: How do you see the micro-VC space evolving?
AK: The micro-VC space is evolving with a focus on niche markets and early-stage startups, where specialized funds bring targeted expertise and networks. More micro-VCs are adopting collaborative models, partnering with larger VCs for follow-on funding.
Additionally, data-driven and AI-enhanced deal sourcing is becoming more common, allowing micro-VCs to identify high-potential investments early. This specialization and tech-driven approach position micro-VCs as valuable ecosystem players in startup growth and innovation.
Build authentic relationships, clearly articulate your vision and value proposition, and be open to mentorship and guidance as they often bring not just capital but also valuable expertise.
Future Startup: What separates successful startups from those that struggle?
AK: Successful startups differentiate themselves through a combination of strong leadership, a clear value proposition, and an agile approach to market demands, whereas struggling startups often lack these elements. Key factors such as understanding customer needs, maintaining financial discipline, and adapting to changing circumstances play crucial roles in determining a startup's trajectory
IHR: IMHO Successful startups can execute their plans effectively and efficiently. They have a clear roadmap and can deliver on them. Startups that struggle often have poor execution and fail to meet their goals.
Another metric for me is their momentum. Successful Founders move and achieve growth fast. Founders in a similar stage, in a similar sector/ market may hugely vary in their reactions, and that precisely boils down to the speed of execution
Last but not least, communication skill which is now surfacing a lot where founders are often spending so much time just sitting behind their laptops that they lose track of being in front of their potential investors and/ or customers. Successful startups manage that process v well
Future Startup: What suggestions would you give to early-stage entrepreneurs looking to raise funding?
AK: Early-stage entrepreneurs looking to raise funding should focus on building strong relationships with potential investors, clearly articulating their vision and market fit while demonstrating a deep understanding of their customer base. Additionally, being open to feedback and mentorship can significantly enhance their chances of securing investment, as many investors prioritize teams that are adaptable and receptive to guidance
IHR: +1 with Abhinav here: being open to feedback and mentorship can significantly enhance their chances of securing investment, as many investors prioritize teams that are adaptable and receptive to guidance. And to stay true to their numbers and their actual tractions.
Future Startup: What are some mistakes startups make while raising investment that they should avoid?
AK: Failing to demonstrate a strong understanding of their market and customer needs
IHR: Having a very inflated ego and skewed view of their work and numbers.
Future Startup: What makes a great pitch?
AK: A great pitch clearly defines the problem it addresses and answers Why you (the team).
Future Plans and Vision
Future Startup: What are your plans for Venture Crafters going forward?
AK: Going forward, Venture Crafters plans to launch a venture studio that will focus on nurturing innovative startups and facilitating their growth through strategic guidance and resources. This initiative aims to create a collaborative ecosystem that empowers founders while further solidifying our commitment to fostering entrepreneurship in emerging sectors
Future Startup: Are you planning to raise larger funds or maintain the micro-VC model?
AK: For now our focus is the micro VC model.
Future Startup: How do you see your investment thesis evolving?
AK: As we launch our venture studio, we aim to integrate our focus areas more deeply, fostering startups that not only drive financial returns but also create positive societal impact
Future Startup: Most unexpected success in your portfolio?
AK: The most unexpected success with one of our HRTech companies was its ability to rapidly expand in the gig workforce space, tapping into high-demand sectors and quickly scaling its user base through strategic partnerships in Southeast Asia.
Future Startup: One piece of advice you wish you'd received when starting?
AK: I wish I’d been advised to prioritize founder resilience and adaptability as much as the product itself, as these qualities often determine a startup’s ability to navigate challenges and succeed long-term.
IHR: I wish I was advised to spend a bit more time in building allies, learning the power dynamics in the system and resistance points to navigate conflicts effectively
I wish someone recommended me “Leadership on the Line” by Martin Linsky and Ronald Heifetz when I was starting. Leaders face resistance and backlash both internally and externally because change often causes discomfort or fear. The book makes you work on distinguishing between Role and Self. Leaders should not internalize criticism as personal attacks instead they must understand that criticism comes from the Role they play
Future Startup: Most underrated quality in founders?
AK: The most underrated quality in founders is humility, as it fosters openness to feedback, continuous learning, and stronger team collaboration, all essential for sustainable growth.
Future Startup: What excites you most about the future of venture capital?
AK: What excites me most about the future of venture capital is the potential for innovation-driven investments to address global challenges
Future Startup: Any final advice for founders considering raising from micro-VCs?
AK: Build authentic relationships, clearly articulate your vision and value proposition, and be open to mentorship and guidance as they often bring not just capital but also valuable expertise.
IHR: Solve a real problem, impress with your vision and how you will execute because, at this micro investing phase, VCs don't have much to look into rather than hearing how you communicate your conviction.
Future Startup: Your unusual productivity hack.
AK: My unusual productivity hack is scheduling "deep work" sessions where I eliminate all distractions for focused tasks
IHR: Going for a walk early morning without my phone gives me clarity for the day and what I need to get done that day
Future Startup: How do you think about life given that life is short and transient?
IHR: Life's brevity and transience can inspire a sense of urgency and appreciation. It encourages us to prioritize what truly matters.
Future Startup: What's the best way for founders to approach Venture Crafters?
AK: Drop us an email: hello@crafters.vc or to anyone of us abhinav@crafters.vc, ayush@crafters.vc and ivy@crafters.vc
