- Platform: meet
- Source: Read.ai 01J997CEVBVVS1GVBKKJ6HNEAM (via Ben Ornstein’s account, imported 2026-08-06)
Transcript
Siddharth Sinha: Hi, Ben. How are you doing? Ben Ornstein: Hey, Siddharth. Good. How are you? Siddharth Sinha: I’m doing well. Ben Ornstein: Thanks for taking the time. I appreciate it. Siddharth Sinha: No problem. Great to meet you. Ben Ornstein: Great to meet you as well. Yeah, where are you calling in from Siddharth Sinha: I’m actually in India right now. I’m calling from Delhi. Ben Ornstein: From Delhi. Very nice. Awesome. Siddharth Sinha: What time were you there? I was at 6.30 the evening. Ben Ornstein: Oh, wow. That’s so crazy. I’m in the great state and random state of Delaware. Siddharth Sinha: Oh, very nice. Very nice. Sometime ago, I was back in 97. So I was living very close to Allentown. Ben Ornstein: Oh, yeah, cool. Siddharth Sinha: So I used to drive through Delaware very often, because my brother was down in Virginia. So I used to drive down that 95. Very cool. Ben Ornstein: Nice. So you’re familiar with the area. Siddharth Sinha: Yes. Ben Ornstein: So how much context do you have for this call? Siddharth Sinha: Not very much, actually. Ben Ornstein: OK. No problem. I can give you the rundown. So I work with a founder named Michael Hauk, who has a newsletter called Hauk’s Newsletter. Do you know Hauk’s Newsletter? Letter? Okay, so great. You’re familiar with how that’s, that’s helpful. Another resource that he wanted to create was something for founders regarding fundraising. And we figured what better way than to actually speak with the founders that have done it themselves, right? Is there a better way? I don’t think so. So basically, we have started to create a library of these we have over, we’ve spoken with over 60 founders and all different industries, all different stages, and have really just asked some questions about the fundraising journey. And the reason I have the read AI guy in here is we’re going to turn the transcript from this call into a case study that becomes part of that library for founders to access. Siddharth Sinha: Very nice. Ben Ornstein: Yeah. Siddharth Sinha: I’d like to share my experiences. UNKNOWN_SPEAKER: Amazing. Ben Ornstein: Well, I’m very excited to learn about it. Again, this is pre-recorded. So if there’s anything you say, either during or afterwards, that you’re like, actually, I didn’t want to say that, feel free to just say it. But also, after the call, it may take me a week or so to kind of create the case study. You’ll get a draft before we post So you’ll be able to edit it. Siddharth Sinha: Very nice. Ben Ornstein: Awesome. Okay. Yeah. Any other questions before we get going? Siddharth Sinha: No, we can get started. Ben Ornstein: Awesome. Okay. Siddharth, how about you, uh, can you please briefly introduce yourself and your startup? Siddharth Sinha: Yeah. So, uh, my name is Siddharth. I’m the co-founder and CEO for Dresma. So Dresma was started, uh, as a way of helping online sellers create all the content that they need to be online with. So everything from marketplace listings, storefront images, to text content, social media posts, our platform allows them to create all of this quickly with their own mobile app or using our web platform. Ben Ornstein: Awesome. Very interesting. And what can you share about the fundraising journey? So maybe this could be the amount of the different rounds that you raised, if you’re comfortable sharing the valuations for those rounds a lot of founders have but a lot of founders also haven’t been comfortable whatever you’re comfortable with. Siddharth Sinha: So we’ve raised one round so far we’ve done a seed round of three million that was back in November of 2021. The company was started in the summer of 2020. We were bootstrapped for about two years basically built out the product, built out a fairly good revenue stream as well. So we’re running at about 600k annualized revenue when we raised our first round. We did a 3 million round, the post money of 10 million. Ben Ornstein: Nice, that’s a nice round. And when you raise this money, you know, what did you use it? What did you use that money for? Were there like milestones you wanted to achieve before you raised? And yeah, how do you allocate that cash? Siddharth Sinha: So if I look the total allocation of cash, it was roughly about 50% the developer or building out the product roadmap. 40% went towards GTM activities and about general 10% infrastructure admin. So that was the rough breakup. So when we raised our initial fund raise at that time, we were primarily focused on doing listing images or marketplace images. So the user in really wide image processing platform that would clean up the backgrounds and do the exposure corrections and things like that. The fundraise was primarily used towards building out the creative imagery piece of the whole journey. So once you had the product images in place, you wanted to set up, create a Instagram post. We had lots of different templates that you could place your product onto. Later in the journey, when generative AI came into the picture, we actually built it built in a lot of generative AI tools to actually help you create lifestyle backgrounds, insert model imagery, all of that can now be done. And we also use LLMs to create all the titles, descriptions, add captions, all of that text content as well. Ben Ornstein: Wow, very cool. And so when you were raising, how did you decide which investors would be a good fit? Siddharth Sinha: So we were looking for two primarily when one was we were very clear that we wanted investors that were operators in the past. So that’s one of the things that we were very clear on because I mean as we all know in entrepreneurship is a lot of uncertainty and we went through ups and downs in our journey as well and it’s good to have people that have had that experience in the past. A lot of the VCs we initially spoke to were I mean they would probably put a analyst type person on the board which would really not help the cause in some sense because I mean yes you need to achieve your revenue milestones and your product milestones but there are periods, changes, market dynamics that change. So it’s really helpful to have somebody who’s done it before so that to have that support and also to learn from their experience. So that was one criteria that we had The second one we were looking for is somebody, we were the team’s still actually based mostly in India and our primary target market was North America and we wanted, we were ideally looking for somebody else for a venture fund in the US that had some experience with the go-to-market activities that we needed to succeed in that market. Ben Ornstein: Yeah, makes total sense now about both of those reasons and so how do you get in touch with those investors? Siddharth Sinha: So our founding board member, he’s a veteran of Silicon Valley. He’s done four startups, had sold four startups. So he’s very well networked in that ecosystem and he had helped us set up the meetings initially and also helped us through the pitch deck and all the positioning of the company. So that really helped having an insider in that ecosystem. Ben Ornstein: Now that’s huge, that’s the cheat code. Did you do any cold outreach at all or was it all through that board member? Siddharth Sinha: So we did do cold outreach, so we pitched to investors in India initially and then to the US primarily. So the reason was that I mean at that time and it’s changed quite a lot but at that time this was about three years ago, the venture capital ecosystem in India was still fairly nascent. So you wouldn’t have a lot of operators that had become VC. So they were primarily financial people and two, they were primarily not willing to bet on new business models. So they were looking at copycat kind of solutions that had worked in China or US and they were localizing the solution. So we didn’t really fit those sort of criteria. So it was difficult going and we did a lot cold outreach in India. We did some in the US, but mostly it was through networks in the US. Ben Ornstein: Yeah, no, it makes sense. So from that cold outreach, can you give rough numbers of the total outreach that you did in terms of how many people, roughly, how many of those turned into meetings? And then of those meetings, how many turned into actual investments? Rough number. It doesn’t have to be totally accurate. Siddharth Sinha: So in India, probably reached out to about 50 VCs. We got in front of maybe 15 18, but we did not get term sheets in India. In the U.S. We probably got in front of 20 or 25 VCs, got meetings with about half of them, and then we had two term sheets in the U.S. Ben Ornstein: Awesome. Yeah, and that’s a pretty good breakdown. We’ve had people who have reached out to like got 300 one investor but that’s crazy. Siddharth Sinha: So a couple of things that in some sense worked in our favor, one was actually we did all of our fundraise through COVID, so we started in June of 2020 and so the only outreach you could do in that time was actually male outreach, there was nothing physical that you could actually do. So that in some sense worked and two was I mean we were actually there from a timing perspective those were good years from fundraiser perspective as well so I do recognize that as well so it’s I mean timing is everything in business. Ben Ornstein: 100 percent yeah 2021 was a different time that’s for sure yeah no that’s that’s great though and so when you were pitching investors what what did you emphasize So a couple of things that unfortunately we had a good head Siddharth Sinha: of revenue, had some very good key accounts in place. So the investors were fairly confident that we had a solution that had some value to the customers. So the market fit may not have been of our fundraise efforts is, by that time, we had a fairly good demo of not just what was working was working, but the whole creative imagery piece, we had a fairly good demo in place. The product wasn’t ready to be rolled out, but this is a visual product. So if you could show somebody something that a seller could create and how easy it was, that really helped as well. Ben Ornstein: Yeah. Oh, that’s so good to be able to. Actually show the product. I think those would be like, if I were to have a product and I was going to pitch it, that’s what I would pitch. I wouldn’t have a pitch deck. I’d show. Yeah. Siddharth Sinha: And especially, you know, this was the first fund round, right? Funding round. And at that time, that’s, that’s really what the, you know, the two things that the investor is looking at, right? Is this a team that, that can succeed in the, in this, in this space? And two is, do they have a product that is sort of there, right? So these are the only two things that really matter. Other than that, I mean there’s so many uncertainties in the whole journey that they really need to rely on the founders to push it through. Ben Ornstein: 100% absolutely and so 2021, definitely was a different time. Did you do anything to drive urgency from among investors and close the round? Siddharth Sinha: I mean fortunately, we did not have to I mean from the time we actually got the sort of the first meeting with our lead investor to the time we closed our round was three or four weeks. So it was actually fairly quickly, I mean we were lucky that our lead investor had a co-investor already in place and then we had been speaking to the syndicate based out of Singapore prior to the term sheet but they wanted willing to lead the round, but they were ready to invest. So once we had the term sheet, they came on board fairly quickly as well. Ben Ornstein: That’s incredible. Yeah, that’s all you can ask for, right? That’s a pretty quick fundraiser. So yeah, and then in hindsight, obviously, I mean, it seems like it was pretty straightforward, but there were probably some challenges that came up. What was the biggest challenge that came up during fundraising? Siddharth Sinha: So if I look back, I mean I told you about the challenges in India and I think it was just a bad fit at that time for the ecosystem that existed in India. In the US, I mean the key challenge when pitching to investors was looking at a moat and defining a moat. So that was something that we had to work around and sort of get that fairly well crystallized pitch and in the whole story, because that was something that was of concern to a lot of investors. They were very clear that the market opportunity existed, they were very clear that there was a business that could be built in that space, but it wasn’t very clear to them that there was a defendable mode that would protect the margins that we’re projecting forward. Ben Ornstein: Yep, makes total sense. Definitely that was a concern in early And, you know, are there any other unique or interesting fundraising stories that you haven’t really mentioned or brought up yet? Siddharth Sinha: I mean, I think at the end of the, if I look back, I mean, things that really did help us or clinch the fundraise, one was the personal connect that, you know, a founding board member brought in. I think that was key in sort of establishing a level of trust very early in the dialogues. That was one key thing. And two is that the availability or the sort of the visual affirmation of the demo and having just the ability to be able to see the outcomes and how easy it was to be able to generate those versus setting up a photo shoot and getting product shipped to a studio, that whole visual impact was very powerful. And I think those two, I think, really did help in being able to close that round. Ben Ornstein: That’s awesome. What’s one piece of fundraising advice you would give to other founders? Siddharth Sinha: I mean, the basic one is find a personal connect into the organization. And networking into the VCE ecosystem. And I think that’s key and to be able to get the right meeting in place. And two, once you have the meeting in place, I mean, I think transparency is very important, trying to lay out your vision, your team’s strengths, weaknesses. And I think it’s very important to have that on those conversations as early in the dialogue as possible. And the last thing you want is to get into due diligence kind of effort, and then have things come up. Because that really, just from the whole process perspective, wastes a lot of time. Your time, the VC’s time. So I mean, you much rather have those dialogues up front. Because at that time, you have a collaborative environment with the VC, because they are trying to understand your position. They’re trying to advise you. As well on how you can succeed in the marketplace. If you leave that out to the due diligence process then it becomes a confrontational environment. If something comes up then it’s a problem. Ben Ornstein: That’s great advice, could not agree more. Who’s an investor that you would recommend other founders work with? This is kind of like a section to be able to shout out a founder that you or an investor that you work with? Siddharth Sinha: Our current group, I can’t recommend more highly. I mean, I think they’re extremely inventors. Capital Partners is our lead investor into it. And I mean, the great thing about them is they’re all operators. They’ve all run this many times. They’ve founded multiple companies, sold multiple companies, done IPOs with them. So I mean, it really helps to have that pedigree on the board as your partners in this journey. And I think that’s really keen for long-term success. It’s really important to have, especially in your early rounds. I mean, your later rounds, you have more of a ecosystem within the company and in your broader advisory network. Early in your journey, you really need to have people corner. 100%. Ben Ornstein: And just to confirm, what was the firm that you work with? Siddharth Sinha: It’s called Inventus Capital Partners. Ben Ornstein: Inventus. Okay, just wanted to make sure I heard that correctly. Yeah, awesome. No, totally agree. You need to have those, especially in the early days, those firms that have seen success. So are there any other resources you would recommend to other founders? This could be books, blogs, podcasts, newsletters, anything? Siddharth Sinha: So a couple of things, I mean, I think, look up the name of the… Ben Ornstein: Yeah, take your time. Siddharth Sinha: So NFX does this, has a signal dashboard that lets you know not just, you know, which venture firms there are, but actually look at and giving you details as to who the partners are, what are their interest fields, and what’s of check sizes they write because doing that homework early on will save you a lot of time and effort to be able to identify the right people and if you’re logged in there, they also tell you how you’re connected to these founders as well. So you can get in a warm intro as possible. I would say that having done our fundraising in covid times, things are a little bit different now. If you can get physical meetings and that I think those might a difference as well now. So that’s something that, you know, we sort of got lucky in some sense in that way. But I think if you’re fundraising, if you can get physical meetings early on, that’s really good. Ben Ornstein: Absolutely. And our last question here, do you have any hot takes regarding the fundraising process? Siddharth Sinha: I think Upfront prep is very important. It’s really important to understand from a venture capital’s perspective why they would invest in you. And I think you need to build your story from that perspective. And I think that’s, I mean, founders very often, you know, we are mostly product builders and want to see the world from that lens. I think it’s really important to invert that lens and understand what the venture capital is looking for in the pitch. In the whole story. And if you build out the story from that perspective from the beginning, I think it just saves a lot of time and effort and just answers a lot of the questions that the VCs have right up front. Ben Ornstein: That’s a great point. Absolutely. Okay, well, yes, Siddharth, I think that’s all the questions I have. Is there anything else you wanted to mention about fundraising or a question I didn’t ask that you’d want did not do as much of it as we would have liked. Siddharth Sinha: I mean in some sense it’s also important that once the funds are raised and you have the money in the bank to have a very clear investment strategy for the at least for the first 18 months. It’s very important to have that feedback because I mean you’re lucky there and if you’re lucky you’ve raised from a fund that has a lot of experience doing this especially early on. I was over, I’m a first time venture fund So I don’t have, I didn’t have any experience with this. So it would have been better in some sense, in hindsight, if I’d lent more on the experience of these guys to sort of do an investment plan, a real deployment plan for the funds as well. And I think that’s something, if I had to do it again, I would probably change a little bit of that. Ben Ornstein: Makes total sense. Awesome. That’s awesome advice. I’ll add that to our, the advice section. Well, yeah, no, Sarath, I really appreciate you taking the time time. Thank you so much for doing so. It might take me, I don’t know, up to a week or so maybe to send the draft over. But yeah, if there are any questions ahead of time, let me know. But yeah, we’ll be in touch soon. Siddharth Sinha: Sure. Great talking to you, Ben. Ben Ornstein: Awesome. Thanks again and have a great night. Siddharth Sinha: Thanks. Bye. Ben Ornstein: Bye. UNKNOWN_SPEAKER: Peace.