Why we launched Fast Forward, our dedicated seed program

At the peak of the Covid-19 induced national lockdown in 2020, we launched Fast Forward, a dedicated seed program aimed at accelerated funding into the hands of the most deserving start-up founders. At WaterBridge, our typical first cheque has been in the $1–3m range as the first institutional investor on the cap table, preferably as the lead. But we have seen a strong need for smaller seed cheques (<$1m) for enterprising ideas coming from visionary founders.

So we set out internally brainstorming about what the tenets of this funding program could be? We studied global benchmarks of accelerator and incubator programs, seed programs within larger funds, standalone seed funds and tried to gather best practices. We spoke to founders who had been through these programs to understand their takeaways and expectations when they pitch to institutional VCs and discovered some insights.

Most founders find the process of dealing with institutional VCs for seed cheques long-drawn, indecisive and unsettling. At the same time, they rank getting funded (and fast) as a top priority at the end of an accelerator/seed program, but that is not always the case. Seed funds, while an evolving ecosystem, are unable to provide the network strength, follow-on capital, and seed-to-growth experience an institutional VC can, especially when the founders need it the most i.e. in the initial 12–24 months.

Fast Forward was designed to keep our core constituent of entrepreneurs in mind and aims to address the hurdles and dilemmas founders face as they set out on their first fund-raising journey. If the early-stage funding ecosystem in India was dispersed and fractured, then we thought through actively collaborating with the best accelerators and seed/angel syndicates with us as the lead, so founders can cut the chase and get funded fast. Here is what we heard from founders -

1. Time is of the essence — Respect founder time and run an efficient process. Rejecting an investment proposal is ok, but reject fast
2. Fair terms — State your terms up front so no surprises after signing exclusivity and while negotiating the definitive documents
3. Value-add construct — beyond seed capital, what is your and how can you help early-stage ideas and founders move on their 0 to 1 journey?

No surprises then, that this program was named Fast Forward! At Fast Forward, we have designed the program to deliver on these asks. So what is on offer?

1. Time is of the essence — We offer a fully remote, online, and digital application and pitch process that commits to responding to applications with a yes/no selection decision within 7 business days. If the decision is yes, we offer you an opportunity to directly pitch to our partnership, so decisions can be taken faster. Our partners are also sector specialists and hence, we ensure you are pitching to the partner who is best positioned to understand how your idea can potentially create a lasting business.
2. Fair terms — We do not invest in SAFE notes and convertibles. Our preference is to do a fully priced, straight equity round. We invest the entire investment commitment in a single tranche since we do not believe in milestone-based funding at a seed stage when variables are so many and our bet is on the founding team above all else. We state upfront what our equity ask will be and publicly share some of our key investment terms (ESOP pool, Board Seat, Reserved Matters etc.) so you are fully aware of our expectations before you pitch to us. We also conduct a legal DD on your company using an external, independent law firm so as to gain comfort on compliances and governance prior to investing.
3. Value-add constructs — This is the part of the program that excites us the most. Beyond capital, we believe in a 5C approach to providing value-add to our portfolios. Each of our Fast Forward founders and companies is treated on par with the rest of the WaterBridge portfolio of 27 (and growing) investments and nearly 60 founders. We reserve appropriate follow-on capital for you as you build, scale and grow. You are the most important part of our own success. You are a core part of the fund, not a side pocket! We connect you to our senior portfolio founders so you can learn from their journeys, and believe us, they have some interesting stories and lessons to share. We actively seed you in the start-up eco-system by recommending you to other VCs, corporate accelerators and GTM partners. We work with you closely in those early months as you seek product-market fit, raise your first invoice, hire your first senior resource or even pivot!

As we set out to launch the second edition of Fast Forward and invite applications (apply here before 28 Feb 2022), feel free to reach out to any of our existing Fast Forward founders to fact-check us on the above and understand what their experience has been working with us. We look forward to meeting (and seed-funding) missionary founders who are convinced they are solving real-world problems and are chasing large market opportunities. To learn more about us and Fast Forward, head to our website. See you in February on Zoom and beyond!

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