Arun Mittal

In the triumphant return of DrinksWithAVC, co-hosts Vik Lakhwara and Bree Hanson are joined by Arun Mittal, co-founder of MBM Capital. Arun discusses his journey from receiving an electrical engineering degree from Stanford and co-founding Chutney Technologies to leading turnarounds and investing in distressed startups. He speaks candidly about the lessons learned from his failures and shares insights into the unique investment thesis of MBM Capital, which focuses on revitalizing startups that have hit roadblocks. The conversation covers the challenges of revamping companies, recognizing execution flaws, and providing strategic guidance to unlock hidden value. Arun also touches on his involvement with LedgerX, the state of venture capital, and the importance of knowing oneself and asking for help. Don't miss this enlightening and refreshingly transparent discussion on the realities of turning around struggling ventures. 

Check out our sponsor for your cap table needs:  www.fidelityprivateshares.com

00:00 Introduction to Drinks With a VC

00:23 Meet the Hosts: Vik and Bree 

00:42 Sponsor Spotlight: Fidelity Private Shares 

01:48 Guest Introduction: Arun Mittal 

03:22 Whiskey Tales and Founder Stories 

05:06 Arun's Journey: From Japan to the US 

10:10 Family Background and Early Life 

15:56 Adventures in Saudi Arabia 

22:24 Arun Moves to India 

22:24 Challenges of Moving Back to India 

24:34 Settling in the US: Texas and Virginia 

33:51 Arun Ends up at Stanford 

33:55 Stanford Days and Career Beginnings 

39:12 Recalibrating at Vassar 

40:11 Sibling Dynamics and Cultural Expectations 

41:48 Transition to Georgia Tech and Early Career 

42:50 Starting Chutney Technologies 

43:53 Challenges and Lessons from Chutney Technologies 

44:17 Arun's Crazy Startup Journey, Raising Money in 2000 

50:40 Advice to First Time Founders 

50:40 Advice for Founders 

54:53 Identifying and Reviving Distressed Startups 

57:04 The MBM Thesis 

59:40 Navigating Founder and Investor Relationships 

59:57 There are lots of good compaies inside a bad wrapper 

01:14:12 Gift 1 

01:19:16 Control Investments and Recapitalization 

01:27:11 Navigating Company Cuts and VC Strategies 

01:27:42 The Lipstick on a Pig Metaphor 

01:27:54 VC Reactions and Deal Considerations 

01:29:33 From Turnaround to the Path to Profitability 

01:30:01 Path to Profitability and Transparency 

01:30:50 Challenges in Transitioning to a Bootstrap Mindset 

01:31:48 What it Takes to Turnaround 

01:32:26 Emerging Managers and Fundraising Realities 

01:34:43 Interest Rates and Investment Hurdles 

01:35:47 Venture Debt and Market Dynamics 

01:36:06 Venture Debt 

01:41:00 The Dot Com Hype Cycle 

01:41:36 The Resilience of Startups 

01:43:15 The Role of Turnaround Firms in VC 

01:45:22 Never Feel Boxed In! 

01:46:14 Running A Public Company 

01:51:25 The Shinsei Bank Turnaround Story 

01:51:27 The Ledger X Turnaround Story 

02:02:59 Reflections on FTX and Crypto Funds 

02:08:35 Final Thoughts and Farewell 

02:08:38 Fidelity Five Questions 

02:15:54 Fin