A strong leader always emerges out of tough situations. It’s almost true that leaders are made not born, especially in crisis. In moments of crisis we always look for leaders who can guide us through the situation. The 2008 financial crisis was one of those unfortunate events when the world was experiencing economic decline. When all of this was happening, somewhere in the greater Chicago Area, a leader named Nin Desai was ready to take the world by storm.
Nin Desai is the President and CEO at NIN Ventures (or NIN.VC). She completed her BBA and MBA in Finance and International Business from Loyola University of Chicago. Lately, she attended a leadership program in Private Equity and venture Capital at Harvard Business School.
Recently, our team of Mirror Review had the great opportunity to have a chat with Nin Desai. She was kind to share her experience and time with us and answer few of our questions.
Here are excerpts from the latest interview conducted by our team.
A Professional Journey Full of Experience
Please can you walk us through your professional journey?
I was always curious about how the companies went public. Thus, after the business school I joined Pacific Crest Securities. So, PCS is a technology focused investment bank, with a global presence focused on software communications, semiconductors, and Internet & Digital Media. Talking about my professional career, I started my professional career at Merrill Lynch with their private client groups. While it was great experience to trade stock and bonds, our role was to manage portfolios of high net worth individuals. I remember in 2005, IPO’s were at the peak and it was amazing to take number of companies public. This experience led me to another question, how do VCs know what companies to invest in and what ones to take public? Thus, I joined Alpha Capital Partners, a private equity firm based in Chicago, after which is launched NIN Ventures (or NIN.VC).
Providing Diversification
As you are in venture capital market you must have experienced the 2008 financial crisis. It would be great if you share some of your experience with us?
Good question! I clearly remember the 2008 financial meltdown that led to a liquidity crisis for entrepreneurs, companies, LPs, & VCs. Fewer IPOs means no exits for VCs, no returns for LPs, and as a result venture funds were on a decline. No new funds meant less startup funding, low employment, and slow economic growth. Soon on April 5, 2012 the Jumpstart Our Business Startups Act (the JOBS Act) was introduced which enables crowdfunding for all Americans and that’s how NIN Ventures came into existence.
Unique and First of Its Kind
Tell us something about your company? What is that unique quality about your company?
I would like to answer both the question by explaining about my company. NIN Ventures (NIN.VC) is a unique and first of its kind crowdfunded technology venture capital fund for accredited investors who can invest in the NIN Ventures Technology (QP) Fund with a minimum amount of $100,000 using multiple investment options like self-directed IRAs, Defined benefit plan, or a regular checking / savings account.
The quality that separates us from the rest is that we tap into a new investor pool –“accredited investors”, we also provide diversification, take a board seat on all our investments and lend the necessary support that an entrepreneur needs to build a business, like they would get at a traditional venture capital fund. And the most important part that investors cares about is the ability to direct invest and enjoy direct returns, which is not the case with a traditional venture capital fund.
Supporting Entrepreneurs through Thick and Thin
Venture capital is all about right investment. What would you advice the new start-ups to look for while choosing a VC?
Startup journey is full of ups-and-downs and a VC plays a key role in lending a steady hand during those turbulent times. While it is important that your VC is upfront and direct with you, keep a look out for yellow/red flags for VC partners who are rude, have high egos, and are disrespectful. At NIN. VC, we are not afraid of investing in first time industry movers and are also founder friendly. We as a company stand with our Entrepreneur(s) through thick or thin.
My advice is to find a VC that sees value in you and your product. Read the partner bio and the industries they like to invest in. Pick a partner you want to work with over the firm. Generally, VCs tend to take a board seat on their investments and often lend their advice in order to maintain good governance and achieve a successful exit. Thus, pick a VC you share a good rapport with and the one that is willing to back you through thick and thin over the next few years.
Challenges of Being Entrepreneurs
What are your view points on Entrepreneurs and also enlighten us on how important entrepreneurs are in VCs?
First of all, I would like to tell you that I come from an Entrepreneurial family so I can speak on their behalf. Entrepreneurs are brave and courageous bunch that are determined to change the way an existing industry function. It is one of the hardest jobs in the world with facing varied challenges when it comes to taking their disruptive technologies to market. So, it becomes very important for an Entrepreneur to know about the unique qualities VCs look for in an Entrepreneur or a Company. At NIN.VC, we start with an Entrepreneur. We invest in an them because entrepreneurs build companies and not the other way round.
