I was reading about neti, neti, the Upanishadic idea of arriving at truth by negation: “not this, not that.” In theology, this is also known as via negativa, the belief that understanding deepens not by defining what something is, but by ruling out what it is not. That lens made me reflect on how such […]
In traditional finance, the Sharpe Ratio helps us assess whether returns are commensurate with the risk taken to achieve them. It measures excess return per unit of volatility, offering a way to evaluate quality of return, not just quantity. While we may not apply the formula directly in early-stage investing, the idea behind it remains useful. In startups, volatility […]
In the context of early-stage companies, frugality is often reduced to low burn or lean budgets. But, it’s not just a financial decision, it’s a mindset. Over time, we’ve seen that frugality tends to show up in four areas: →TimeFrugal founders are intentional with their hours.They prioritise high-leverage tasks over constant motion. →TeamHiring is deliberate.Each […]
We often believe we’re using our time wisely but like money, time gets mentally labelled. And those labels quietly shape how we spend it, often in ways we don’t fully examine. Nobel laureate Richard Thaler described this as mental accounting, the idea that we treat the same resource differently depending on how we categorise it. […]
Startups operate in motion – fast cycles, evolving markets, constant pressure to adapt. Every part of the company is expected to move, iterate, and scale. However, not everything may be required to move at the same speed. This is where the Lindy Effect becomes a useful mental model. The term originated from Lindy’s Deli in […]
I had the opportunity to be a jury member for the Young CEO program by ThinkStartup at Indian Institute of Technology, Delhi and what an extraordinary experience it was. What made it even more impressive was that the students had just 4 days to prepare. Working with peers from different schools, most of whom they […]
At Sarcha Advisors, we’ve seen several companies face difficult situations, not because the idea wasn’t strong, but because they didn’t have enough cash flow visibility when it mattered most. When a fundraise takes longer than expected, or the burn increases unexpectedly, it creates pressure. It can impact decision-making, shift priorities, and sometimes lead to choices […]
I recently attended the AI Literacy Bootcamp by AI & Beyond, hosted by House of Tej. The session explored how AI is reshaping work and decision-making at both individual and institutional levels. A few reflections have stayed with me: A few other ideas that stood out: These developments raise important questions about how we learn, […]
In my earlier years in finance, I spent a lot of time reading about value investing, especially from Warren Buffett and Charlie Munger. Their teachings shaped how I approached investing and continue to influence how my father, Rohit Chanana, and I think at Sarcha Advisors today. One belief has stayed constant: values and a strong […]
The Capital Asset Pricing Model (CAPM) is widely used in public markets to estimate expected returns. It is based on a simple idea:The greater the risk, the greater the return should be. The equation is:Expected Return = Risk-Free Rate + Beta × (Market Return – Risk-Free Rate) But startups don’t have listed prices, historical volatility, […]