Dear Investor,
The hallmark of the world’s finest musicians or triumphant athletes (or, for that matter, any high performer) is their ability to perfect their timing. You may well ask: what does music or sports have to do with our business? Or, for that matter, timing? The fact is that success is all about practising, preparing, improving, and taking action at the right moment – without hesitation, without falling into the trap of over-analysing, and simply hoping for the perfect opportunity. A note played too early or too late can ruin a symphony; an athlete who leaps off the starting block a fraction of a second later can lose a race for which he will have prepared all his life. Timing is not the main thing; it’s the only thing that matters.
Timing is the silent force that shapes destinies in life, business, and investing; it matters in personal decisions and professional achievements. It refers to the ability to recognise the precise moment to act, in alignment with external circumstances and internal readiness. Good timing can be the difference between failure and success, stagnation and scale. For startups too, timing is often the critical variable that determines whether a new product, investment or strategy will succeed. Entering a market too early may mean that consumers are not ready, while entering too late can result in higher expenses due to market saturation. Companies that understand timing know when to pivot, when to launch, and when to wait, often gaining a competitive edge by aligning their actions with market readiness.
Investing in startups invariably centres around timing: the decision to invest, hold or exit is shaped by a complex interplay of internal metrics and external forces. Similarly, exiting a startup investment is as critical as entering. The timing of an exit is determined by several factors including the financial performance of a portfolio company, prevailing market conditions, valuation metrics, the need for additional funds to scale further, etc. In the dynamic world of startups, windows of opportunity can be brief and fleeting. Knowing when to act – whether to reinvest or to exit – requires dedicated vigilance, analysis and, sometimes, intuition.
For us at YourNest, committed as we are to nurturing our startups and enabling the eco-system, we believe our early-stage investments should be exited when an incoming investor can see genuine value: our first exit was Uniphore (a Fund I investment) during the Covid19 lockdown – and, even today, looking back, we know we did the right thing at the right time when we exited 10 companies between 2020-2024.
The present global environment is again marked by volatility, uncertainty, complexity, and ambiguity – collectively known as VUCA. Against this backdrop, the importance of timing is magnified because of:
- Agility and Adaptation: Investors and entrepreneurs must be agile, constantly reassessing their strategies as market conditions shift. The ability to pivot quickly and make timely decisions is a hallmark of success in this scenario.
- Continuous Monitoring: Ongoing analysis and collaboration are essential. Investment teams that regularly review market signals and internal metrics are better positioned to adjust allocations and seize opportunities as soon as they arise.
- Risk Management: In uncertain times, timing is an ideal tool for managing risk. Exiting investments before market downturns or reallocating resources in response to emerging trends can protect and enhance returns.
At YourNest, our foremost priority is the interest of our investors and founders. To do so, our decisions are never impulsive or rushed. Instead, they are always about learning from past experiences, building consensus without ever compromising, and seizing timely opportunities. By cultivating awareness, agility, and a disciplined approach to decision-making, our team is able to harness the power of timing to navigate uncertainty, and achieve lasting success for every stakeholder.
And with your continued support, I hope to demonstrate the power of timing in the next few weeks as we plan deterministic actions related to the portfolios of Funds I and II. In doing so, we intend to generate more value for every investor. We trust you will endorse our decisions, and request your patience in these times.
Yours sincerely,
Sunil K. Goyal
Managing Director & Fund Manager
July 1, 2025