Meet Krishna Maggo; The 16-Year-old Founder of Sateeq Who Became An Entrepreneur In Class 10
16-year-old Krishna Maggo built his first company when he was in class 10. Always passionate about entrepreneurship, Krishna did not lose heart when his first venture did not succeed. Within just two years Krishna has set off with his second venture Sateeq - an online fundraising platform for startups, that is now competing with big names like AngelList, LetsVenture, and Venture Catalyst.
Krishna had been operating Sateeq in stealth mode for six months before he decided to formally launch operations in April 2022. Within just two months, Krishna has onboarded 10 companies that have completed either Pre-Series A or Series A fundraising rounds.
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In fact, reports suggest that the three startups that raised funds through Sateeq have already gone live. With a pool of 10,000 marquee and angel investors, Sateeq is now looking at onboarding 50 more startups on the waitlist, which include big names like Ivy Capitals, Deshpande Startups, and Mumbai Angels.
How Did He Do It?
Krishna always had a passion for entrepreneurship but could not focus on it because he was occupied with his studies. The Covid-19 pandemic brought the perfect opportunity for him after his class 10th board exams got canceled. He used his free time to build a startup called GrowwVenture- an angel investing platform.
In the next year, Krishna tried everything to make the platform work. He used social media and email marketing to reach out to investors and even managed to onboard 200 odd angel investors onto the platform. However, in spite of his efforts, he found it difficult to build investors' confidence in the platform.
Eventually, he realized that the market in this space was already saturated with several players and another platform of the same nature would not be required. As a result, he decided to close operations after five months and move on to something else.
The next time around, he came up with the same idea, but there was a mild tweak in the business idea that made all the difference. Instead of angel investors, he decided to turn his attention to retail investors who did not have the capital to join traditional platforms as angel investors.
The Beginning Of Sateeq
Sateeq is a platform that allows ordinary people to become investors with as little as INR 5,000 in startups. "Angel investing is accessible to a higher class of society," Krishna told a leading media outlet.
In the traditional investment platforms, investors are required to invest a minimum of INR 2-3 lakhs. On top of that, a startup should have an annual turnover of INR 2 crore to raise any funds from marquee investors.
Sateeq aims to bridge this gap by allowing investors with low capital to invest in startups. It's a unique business model that makes investing more democratic and allows startups with low funds to gain access to capital.
The Business Model Of Sateeq
When it comes to onboarding startups, Sateeq follows an invite-only model where startups are verified following a 3-step process. Krishna, with his team of 10, begins the process by scouting and vetting startups by investors associated with Sateeq.
The next step involves a thorough analysis of the scope and opportunities involved in investing in the startup. In the third step, an external agency is hired which gives a due diligence report on the startup.
Once the startup is on-board, it can connect with the pool of investors to raise community funding through Compulsory Convertible Debentures (CCD) and Community Stock Option Pools (CSOPs).
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However, Sateeq does not allow investment via SEBI's Alternative Investment Fund Structure. As a result, it does not come under the capital market regulators' purview. At the same time, Sateeq operates under the guidelines prescribed by the Companies Act, 2013.
How Does Sateeq Earn Money?
When Sateeq raises any fund, the company receives a transaction fee from the investors. Usually, it amounts to 2 percent of the total money investment. On the other hand, startups pay a commission of 2-5 percent of the total funds raised, while investors need to pay an exit fee of 2 percent while backing out.
Overcoming Personal & Professional Challenges
Even though Krishna's biggest support system has been his parents, they were skeptical about Krishna starting a business venture. In part, the hesitation came from Krishna's father who tried to start a restaurant business but that turned out to be a failure.
"My dad's failure in business is one of the reasons why my parents were not confident with me exploring entrepreneurship. They had witnessed a massive loss of investment. But once they saw Sateeq attracting attention or some really big names, they realised I was doing something right," Krishna explained.
Just like every other middle-class family, Krishna's relatives and parents wanted him to find a job. The fact that he was starting off without even graduating made a lot of people question the decision.
However, with success a reality now, Krishna has left those doubts behind him. His latest challenge is to close as many deals as possible and grow Sateeq's network of investors to 1 Lakh.
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