Introduction

In an increasingly metrics-driven investment landscape, Parag Dhol, General Partner at Athera Venture Partners, stands out for his enduring belief in the power of people over numbers. With over two decades of venture capital experience, Dhol has consistently prioritized founder compatibility, long-term commitment, and market dynamics over conventional performance indicators.

In an exclusive conversation with Indian Startup Times, Dhol opens up about the evolution of his investment philosophy, lessons from past ventures—both successful and not—and what India’s startup ecosystem needs to thrive in its next phase. The dialogue, moderated by Sandhya Bharti, also explores emerging sectors like deep tech and healthcare, and the importance of learning from failure in a culture that often penalizes it.

Bridging the Ecosystem: Athera’s Investment Lens

Parag Dhol aligned with the investment purpose, sharing that Athera’s current investment thesis is built less on strict sectoral mandates and more on founder-market fit and long-term resilience. “We’ve become increasingly focused on the softer aspects—how well we can work with founders, their level of commitment, and their openness to evolving over time,” he said.

Backing Visionaries in Space and Healthcare

Dhol shared admiration for the new wave of DeepTech entrepreneurs, especially in the Indian space sector. “People like Awais and Kshitij of Pixxel are building on the foundation ISRO laid—creating companies in areas once thought to be off-limits to startups,” he observed.

He also discussed Tricog, a health-tech venture backed by Athera that uses a blend of medical expertise and technology to analyze ECGs in real time. “They’ve analyzed over 25 million ECGs, and that kind of scale is what makes healthtech truly impactful,” he noted.

Sector-Agnostic, Founder-Led Philosophy

While Athera has made successful bets in sectors like FinTech (PolicyBazaar, FundsIndia) and consumer internet (redBus), Dhol emphasized that the firm’s success comes from flexibility. “We back great founders in large markets—sector is secondary,” he explained.

He pointed to redBus as a standout success story—citing how the team capitalized on the fragmented bus operator ecosystem—and contrasted it with PolicyBazaar, where his initial bet did not fully anticipate the massive trajectory it eventually achieved.

The Reality of Portfolio Failures

In a candid segment, Dhol acknowledged the high failure rate in venture capital. “There are far more failures than successes,” he said, referencing companies like Lemnisk and Avaz, which faced challenges around product-market focus and shifting market conditions.

Bharti echoed the sentiment, discussing how startups in Indian Startup Times’ portfolio like Clemsic and Avaz faced similar moments of reckoning. Both agreed that alignment between investors and founders during tough calls is critical—and often, more defining than the outcomes themselves.

What Makes Startups Fail—and Succeed

Dhol highlighted the dangers of trying to do too much too soon. “Splitting your focus between products increases your risk of failure. Success comes from concentrated, focused effort,” he said. He referenced Jared Diamond’s Anna Karenina principle—that success depends on avoiding many potential pitfalls.

Bharti added that the team at Indian Startup Times often sees this in early-stage founders who try to scale before refining their core offering.

Championing Second-Time Founders and DeepTech

Dhol noted the Indian ecosystem still undervalues moderate successes and failed founders who have learned from their mistakes. “There’s this over-glorification of Unicorn success. But some of the most resilient founders are those who’ve failed before and learnt the lessons.”

He also pointed to DeepTech as a sector with high potential but limited funding. “Larger funds are still not leaning into it. That’s an opportunity for investors who are willing to be patient and conviction-driven.”

The Illusion of Capital and the Importance of Focus

The discussion turned to the dangers of large funding rounds creating false confidence. Dhol warned against complacency: “Capital isn’t progress. Founders still have to show clear movement—traction, learning, execution.”

He encouraged startups to focus on controllables—product, customer engagement, and adaptability—especially in unpredictable environments like AI and post-pandemic recovery. “Don’t be distracted by what your competitors are doing. Run your own race,” he said, quoting Jeff Bezos.

Reflections on India’s Startup Future

Looking at the broader ecosystem, Dhol voiced concern over the limited number of high-quality, enduring ventures. “We need more companies like PolicyBazaar & Eternal/Zomato — outcomes that are both commercially strong and culturally transformative,” he said.

He emphasized that fixing this is a collective responsibility: investors need to back long-term bets, founders need to be resilient, and the ecosystem must accept failure as a part of the learning curve.

Conclusion

Parag Dhol’s perspective offers a sobering yet hopeful take on venture investing in India. In a market that often celebrates headline-grabbing rounds and Unicorn valuations, his call for empathy toward failed founders, patience with DeepTech plays, and conviction-led investing is a refreshing counter-narrative.