Comments on: VC speak> Wanted: Inexperienced but Entrepreneurs!

By: Rajkishan

Rajkishan — Sun, 27 Dec 2009 16:04:23 +0000

Wonderful Insight Sanjayji, I am really happy that some guys of your experience are coming out to guide the youngsters towards success.

This encouragement on the long run will definately shape the destination of our nation.

THE NEED OF THE HOUR IS DEFINATELY INNOVATION & ENTERPRISE.

BECAUSE RECESSION IS NOT A DISASTER, BUT AN INVITATION TO INNOVATION.

WE AT WAY2WORLD HAVE BEEN PRIMARILY TRYING TO DO THE SAME. OUR MODUS OPERANDI IS;

1.WE EXPLORE & ENCOURAGE TALENTED YOUNG STUDENTS INTO BEIONG INNOVATIVE.
2.WE EMPOWER THEM WITH ALL BASIC FORMALITIES LIKE, CONSUMER FEEDBACK, BASIC PATENTABILITY OPINION, GOVT PROCEDURES…ETC.
3.WE HAELP THEM CONVERT THEIR DREAMS INTO SUCCESSFUL ENTERPRISE.

OUR ORAGNISATION IS OFFERRING FREE SERVICES TO STUDENTS. WE WISH TO GET GOOD RESPONSE FROM ALL AROUND.

FOR MORE DETAILS PL LOG: http://WWW.WAY2WORLD.IN.

By: Entrepreneurs - Don’t drink your Kool-Aid! | pluGGd.in

Entrepreneurs - Don’t drink your Kool-Aid! | pluGGd.in — Fri, 07 Sep 2007 09:52:10 +0000

[...] Wanted: Inexperienced but Entrepreneurs! , What Innovative Startups should do to get [...]

By: Sanjay

Sanjay — Mon, 03 Sep 2007 03:10:17 +0000

Thanks for the comments.

However, it is worth noting that VCs have to deal with 5 risks when
investing: people, market, business model, technology, and financial. Obviously, no one wants to
take all 5 risks! That would be fool hardy. The people risk has to be zero in the estimate of
the VC (hence the attention to educational background, experience, expertise, etc). The market
has to be big and growing and there must be technological advantage. VCs will take the financial
risk and business model risk if they are satisfied with the risk management of the other 3 types of
risks. Because a product is different or looks cool, doesn’t mean it will get funded. At the
end of the day, the business must have the potential for delivering value to the VC by way of financial
returns within about 5 years.

Hope this also provides the VC view!

Sanjay

By: Nitish

Nitish — Sat, 01 Sep 2007 04:58:15 +0000

Wow !

So true indeed.

I know at least 4 startups where these new age entrepreneurs are working wonders, and their innovative products say it more than anything else.

burrp, OnYoMo, iXiGO and Taazza come to my mind in that category – they have been founded by the new breed of experienced, well traveled, savvy, confident, and foreign return ppl who left plush jobs to create value in India, and yet none of these received their BIG round of funding yet. Would the VCs in India rather back a me-too startups that either has a investment from Reliance Group or a old-school guy with clout running the show ?

Bravo Sanjay for writing such a bold piece. I hope the VCs are listening.

By: Deepak Vinchhi

Deepak Vinchhi — Thu, 30 Aug 2007 03:01:35 +0000

Very thoughtful article. I think that even VCs in India are much more risk averse compared to their US counterparts. Angel investors are even more risk averse. I have seen investors (angels and VCs) asking questions like “So is your business model similar to such-and-such company in the US?” Most times, they need some proven track record of the business model; where is the risk if a business model is already proven by somebody else?

I agree with you that the new generation that is brought up post-1991 will most likely create disruptive businesses, and VCs are well advised to look for gems in this generation.

By: Samanth

Samanth — Wed, 29 Aug 2007 18:05:11 +0000

Awesome article! I hope VCs too realize that there is no point in chasing the “safe” bet. Honestly, do you really see that happening? I am actually of the view that VCs are still funding regular startups like guruji (and are more brand driven, like IITs etc) and not the lateral startups..

Am I right?

By: Pratyush

Pratyush — Wed, 29 Aug 2007 10:29:22 +0000

India has always had a “follower” attitude. This reflects in many aspects of the growth of Indian industry – e.g. we have so many highly successful service companies and not a single good product company yet.

However the mindset is changing and not the least due to our (India’s) economic growth. The typical child in 10th doesnt have to become a Doc or Engineer to “feed his family”. He is actually thinking of becoming a fashion designer or starting a technology company. Its also reflected in several startups (e.g. http://www.vakow.com ) where people have left plum jobs to start things of their own.

VCs look at good ROIs and the argument by Sanjay is a very relevant one to keep in mind while going about deciding what to do.