During this unprecedented economic climate Blue Scorpion Investments’ “hands-on” approach to investing, coupled with the fact that its focus is on socially conscious businesses, is allowing the company to thrive. The early-stage venture capital fund is taking steps to ensure that both its own, and its portfolio companies’ responses to the current crisis are strategic. Gautam Ahuja—who comprises half of the company’s dynamic leadership duo—utilizes his impressive fifteen years of experience in investing and his entrepreneurial spirit to navigate through today’s uncertain market, and come out on top, post-COVID-19.
Q: What sets Blue Scorpion apart from other investors and venture capitalists in the industry?
A: The most important part of our business is how hands-on we are with our portfolio companies; it really brings a lot of value to them. My partner and I—though we come from two different backgrounds—are both entrepreneurs. I worked in the finance sector while he worked in branding and was an expert in creating brand cultures. Having the entrepreneurial aspect, financial background, and a very strong network is what allows us to change the landscape of our portfolio companies. And by shaping their brand culture, we are able to take them to the next level.
Q: You’ve worked with many incredible companies that focus on innovation and optimization (like Quip and Eight Sleep)—is a unique product your primary criteria for choosing a new company to invest in?
A: It’s not about the unique product or thing, it’s about a great product or service that can authentically become a good brand; that’s the number one thing we look for. The second, is the relevance of the product culturally: does it fit the philosophy of the generation, and will it for the next ten years? We choose a lot of companies that are more of “need products” than want products. So even in these tough times, most of our portfolio companies are doing very well. We also look for companies that can create new categories of business, that did not exist before—it’s about innovation.
Q: Since you work with many startups that focus on sustainability and being environmentally conscious (like Cleancult and Ten Thousand), does Blue Scorpion Investments also hold these aspects as core values of the company?
A: Yes, absolutely. Social consciousness is very important for us at Blue Scorpion Investments. Especially now, we want to make sure the companies we invest in respond to the times and the crisis. Thursday Boot Co. is making masks for healthcare workers, Van Leeuwen Artisan Ice Cream has been donating ice cream to New York hospitals, Cleancult has been donating bars of soap to hospitals—everyone is doing what they can.
Q: How are you adjusting your company’s strategy to the current uncertain business climate—what steps are you taking to preserve your brands?
A: We are advising our brands on strategic initiatives they can take now to come out stronger in the future, when this pandemic is over. We’re helping them reframe budgeting and advising on how to preserve capital now, so as to not blow through budgets unnecessarily, and also how they can give back to the community in the current environment. And personally, we are more in touch with our own investors now then we have even been, so that they’re kept aware of what is happening and there is transparency—now is a time to overcommunicate.