Sloka CEO on state of Tech Funding in India [Must Read]
[Sujai Karampuri is cofounder and CEO of Sloka Telecom, which recently won NASSCOM Innovation Award for 2008 in the Startup category. Presenting a candid interview with him and his views on state of technology funding in India]
Qn: Can you tell us more about your company and technology?
We are a four-year old company based in Bangalore. We make base stations for broadband wireless and cellular networks. Base station is the electronic equipment that sits next to the towers transmitting and receiving radio signals that talk to your mobile or a wireless broadband device.
Qn: What is so unique about technology that you developed?
We make world’s smallest and cheapest base stations. This allows wireless operators to make profitable business out of rural deployments in emerging markets. In addition, our small base stations are targeted residential users who want better coverage at homes in developed countries.
Our patent-pending design approach looks at the whole base station making from a different perspective, building it ground up, breaking away from legacy architecture, and emphasizing on software. This way we can use most commonly available hardware and chipsets bringing down the cost. It’s something similar to what PCs did to the main-frame computers. Right now, we get a sustainable cost advantage of 4X in the current product and already working on technologies that gives 10X cost advantage in the near future.
Qn: What progress have you made in the last four years? Did you already sell your products?
We have developed and released Fixed WiMAX solution, consisting of base stations, CPE, AAA and NMS. We have installed first 5.8 GHz WiMAX network of France, and currently we sell into few countries in Southeast Asia and Latin America. We are also collaborating with a tier-1 vendor to make world’s cheapest Femto base stations – these are base stations for homes and offices.
In addition to receiving Nasscom Innovation Award, we are winners of RED HERRING 100 ASIA 2008 and a finalist in the RED HERRING 200 GLOBAL 2008 awards. We were listed as hot startups in India for 2008 by Mint Magazine.
Qn: What is in the future?
We are already developing world’s cheapest Femto base stations and 3G LTE/Mobile WiMAX equipment. We are working on other ideas to keep the sustainable advantage in radio access equipment even five years from now. We hope to become one of the leading wireless equipment companies in the world.
Qn: So, how did you fund your company?
So far, we have been funded through self, family-friends and some angel investors. We have invested less than a million dollars to get to this stage. We have been making revenues since one year now. Cash has always been an issue for us. We could not do things we wanted to do because we were never adequately funded.
Qn: How come you were not able to raise money from Investors in India?
I think you should ask Indian investors why they would not want to in invest in us. [Smiling…]
Seriously, I think it is bigger problem endemic to India as a whole – nothing to do with Sloka or Indian investors alone. Take a look at Indian roads. It’s not that we don’t know if great roads exist elsewhere on the planet. We know they exist and we also know that if we invest the right amount of money, we can actually make great roads, yet we don’t do that. Why? I think it’s because we want quick-fix and easy solutions. We want to just get by. Invest little in, get little out. The same is true for Indian investments.
Most Indian investors want to do something that gives quick returns, though those returns are small. I was talking to someone from Switzerland and we were comparing the startup landscape. He admitted that the number of startups he gets to see in Europe is small compared to what he sees in India. However he notes that startups there tend to be more focused on breakthroughs in fundamental research and technology that have extremely high barrier-to-entry.
In India, we celebrate the fact that we have zillions of entrepreneurs. When we say that, we include rickshaw wallahs, roadside hawkers, and everyone else who is self-employed. What we fail to understand is that such entrepreneurship is need based – if the guy doesn’t start on his own he will most probably starve. Such entrepreneurship doesn’t give you scale and usually the barrier-to-entry is extremely low.
Unless the barrier-to-entry is high and unless there is scope for rapid scale, we will not create big stories. One of the areas that we should invest in is technology. We don’t see that happening.
Many of us use trains, cell phones and cameras, yet we don’t put research money into making better trains, better phones, or better lenses. We are happy buying the new and better stuff coming from outside. Often, we gloat over this behavior – that while other countries spend their money on expensive and futile research, making optic fiber, DVD players, cameras, cell phones, we just reap the benefits by just paying a small price at the counter.
We have not reached a stage where we invest in technology and research to build a business around it. We are not ready to believe that big goals can be conquered through technology. When you see one company trying to build a technology company, usually it is an anomaly. And nobody knows how to deal with anomalies.
Qn: Why do you think Indian VCs won’t invest in technology companies?
Indian VC firms are investing in many me-2 companies which are exact replicas of websites and other portals that have become successful in US. Many of these companies have low barrier-to-entry except in financing – and investors come in to take care of that. When you know that those tried-and-tested formulae will work in India, now or in future, why experiment with anything else?
Also, there have been precedents in exits for me-2 companies – some have gone IPOs while some have been acquired by US based web portals who wanted a presence in India. I don’t blame them for not investing in other things right now – they are busy funding the models which are proven successful.
Moreover, how many high tech companies actually succeeded in India? Without precedents, it is tough to believe that such companies can succeed in India. What about exits? If you are in US you can at least tell yourself that it will be acquired by a technology giant there – and India has none. That leaves out IPO as the only option. And again, how many tech companies in India have actually gone IPO?
In addition, there are not enough VC firms that we can classify as angel, seed, series-A, series-B, private equity, etc. If an early stage VC firm takes a bold step to fund a big idea, that firm does not know if future rounds of funding will happen or not. Only those companies that will somehow become sustainable right after the first round are funded – and they tend to be small ideas.
Qn: But there are so many VCs who insist they are going to invest in technology companies…
I guess we differ in how we define ‘technology’. When they say Mobile, I think of actually developing and selling a handset, while they think of ringtones.
Usually the VC firms start out fine but then they slowly redefine the word ‘technology’ telling themselves that there are not many technology companies that are fundable. Many a times, when filling a category on Business Plan competition, I have to choose ‘Other’ category, because there is no category for our company. Indian investors are not geared to deal with companies like ours. Common refrain is that they don’t have a partner who understands this business.
One doesn’t have to be a technologist to invest in a technology company. One doesn’t have to be an entrepreneur to become a successful investor. What we need a set of experienced investors who can take bets.
There are many fund managers in the VC firms, but not many leaders. They seldom carry a vision and rarely do they back a vision. Many of them don’t exude confidence – they look confused and most often indecisive. Some of them change their stance and decisions so many times completely contravening what they said in the last meeting. If I ran the company like that most of my team would have abandoned me by now. May be, leadership is also a desired quality in the investment community.
Also, the mandates given to these VC firms do not give them room to back big ideas. Some firms have a mandate not to get diluted beyond certain limit. That mandate limits them to look at extremely narrow area of companies – and those ideas naturally tend to be small.
The way Indian entrepreneurs are embracing different techniques to succeed in Indian conditions Indian investors too have to try out new methods.
This whole idea of funding first generation entrepreneurs is new to all of us – both investors and startups. We all need less teaching and more learning. Questioning the business plan should be done with intent to learn the business. Investors can collaborate with the entrepreneur to hone the business plan.
All these meetings in a lookalike board room where the entrepreneur is grilled by an investor reeks of Indian college atmosphere where a student is grilled in viva-voce by imperious teachers. How about meeting at a coffee place, or how about the investors actually coming to see the company, meet the team, see the products, or how about making a call to the customer to understand why they bought the products from such a small company?
It will take some time before entrepreneurs and investors see eye-to-eye as businessmen working on a business plan – we are not there yet.
Qn: What about US based VC firms? Won’t they invest in India?
For the first round of funding, most VCs like to invest in a company which is quite close to them in proximity. Also, those VCs who show interest in India have already setup a shop in India or partnered with an Indian firm. Eventually you have to go to firm in India.
So what do you think a technology company should do in India? Where can they raise money from?
A technology company based in India is on its own. I don’t expect them to be funded by Indian VCs in the near future. Entrepreneurs should fund their organization through self, family-friends or do some other business to bring the money in. Such an entrepreneur should prepare himself to the fact that such a process can slow down the things.
One can tap into Indian government funds geared to support technology companies – typically they are slow. Though I have never raised it from the government I am working on it seriously now.
About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
Brilliant post. Perfect articulation of the ground reality. I hope this gets taken as something to be aware of by budding TECHNOLOGY entrepreneur, but not to be intimated by. As Sujai says, there are ways to realize Big dreams. VCs are a distance to go before they march ahead of ground realities to back something Big.
Simply amazing post.
I run a tech company myself and I have run into my share of VCs. I would look for other modes of financing like banks before Indian VC money.
Tech entrepreneurs should not see VC money as a quick way to get back into ’salaried mode’. The ride is going to be much harder than that.
For web businesses, VCs are still a very attractive option.
Now we need to find a way to get Sujai to write more often !
You rock Sujai!
All the best…
Interesting views Sujai
Why are we so hung up on having investments in technology?
Are we really sure that we have completely soaked up the investments made to derive benefits for the Indian Consumer.
In my opinion, there definitely has to be a balance in investments aimed towards creating new ‘technology’ and investments towards finding new and creative uses for what has already been created.
Since there is probably a lot of bandwidth still be utilized to soak up the existing technology for the Indian market, it is only but natural that investments in fundamental technology are difficult to come by.
~R
Interesting post, it is sad to see the hypocritical way VC’s work. I completely agree with Sujai on the easy funding which the me-2 companies get. Through there is nothing bad about it, it just show that VC’s are also in for a quick buck.
Good one!
Brilliant. We really need to hear CEOs like this, and not the standard rigmarole of these ‘funded’ companies. This is ground reality, not the bubble they live in.
Extremely informative, thanks sujai
Very well said. We are also running business related to high tech defense technology and know about this ground reality. To convince about these kind of ideas one has to go through true hardship for any kind of investment (either from VCs, or business houses or govt funds !!)
You could not have been more candid in this interview! Amazing stuff!
I strongly agree with you, another issue is we donot encourage thought leadership, even in our thinking we have to be followers. With such a thought process you can conveniently throw all innovation out of the window.
As usual, you once again rocked us. That’s a great piece of wisdom from a bright CEO and leader. The industry needs to hear from people like you. These days, very few people have the guts to fight against the so-called slowdown. What they missed out is that every circumstance has a market of its own! Sloka Telecom Corp’s innovative technologies are the best for these days for economical and mass telecom deployments.
Really an awesome interview and awesome knowledge being shared.
I really like this line,
“I guess we differ in how we define ‘technology’. When they say Mobile, I think of actually developing and selling a handset, while they think of ringtones.”
This is really true, when you want to design and implement a good industrial product you would come across all these things.
Well said
Sujal,
I am scribbing here to just let you know that you have become an ideal for people like me.I have following your journey (change of business model,going to US for VC funding….) and all i can say is hats off…Lagay raho munna bhai !!
I am re-posting my comment…
It is intriguing how Sujai seems to have conveniently forgotten that he has pitched his company to a lot of non-Indian VCs too – for instance see this – http://www.rediff.com/money/2005/aug/23forbes.htm...
In fact, a few years back Sujai had engaged a boutique investment advisory firm and had gone on a roadshow to Silicon Valley to raise money from the Bay Area VCs and was not able to do so.
While Sujai seems to be a decent chap, his tirade against VCs is at best misguided and at worst malicious – he would probably do a lot better if he does some honest soul-searching to see how he can make his company fundable-worthy rather than blame the whole world and it’s father for his inability to articulate his company’s value proposition.
And as a final point, contrary to what Sujai says, VCs are not here to take risk – their main purpose is to make money by taking measured, informed risks…
Very thoughtful comment. Can VCs of the whole world be wrong? Sujai could have an answer.
continuing…
Sujai is a smart guy and some of the points he raised are valid. When Sequoia goes on a forum and says that they won’t take concept risk but only execution risk, they are obviously inviting ridicule from the entrepreneurs.
That said, Sujai is sorely missing the point about his company. He made few cardinal sins with his company:
1. He built his product on the wrong version of wimax – 802.16d. The whole world has moved to 802.16e and he still doesn’t have a product to show in the “e” standard. The space is pretty crowded with base station providers and when you are stuck with a wrong technology, it doesn’t help your cause.
2. He had a window of opportunity with an area called femto cells about couple of years ago. His architecture might have been suitable for the market but he didn’t move aggressively there. It may be easy to argue that he would have done if he had the money – but running a startup is also about prioritizing correctly and have the discipline to ditch an effort that is failing to bear fruit.
3. While he has built an architecture that helps with making low cost base stations, competitors have reached there in a different way. They are riding the wireless chipset economies of scale to reach low cost – or they have reached within a reasonable range where cost has become less relevant. Anybody who is in the electronics field knows that you cannot build a sustainable story primarily on low-cost. Big guys will come and undercut your cost. When you are around for 4 years selling low-cost, the rest of the electronics industry has caught up with your cost basis just riding the technological advances.
Business world, unfortunately is not that forgiving; it is pretty brutal and you can not afford to make many mistakes. It may be hard for Sujai to reconcile with this truth but he needs to do so soon. The venture eco system is pretty small and he doesn’t need to burn all his bridges this early in his career.
Very well said …
This is the fact … VCs are taking limited risks in India but it is a different story in the western countries.
Entrepreneurs should also understand, that raising VC money is not the only way to do business. Do a different business, work as a consultant, or do a full time job and work on your dreams as a part time.
Believe or not, most of the companies in US do the same, until they get funded. Contrary to the perception, majority of startups in US do not get funded and go ahead on their own until they have proven the concept and started making money.
I find most of the startups afraid if their ideas will be copied or stolen, and hence they need to start big. If anyone is having a similar view, they are not ready for starting out. There is a big difference between an idea and a running business with that idea.
I think this is just one side of the story.. Why would’nt someone want to fund the next google in making.
This is not a case of daal mein kuch kala hai. It is more like kale mein kuch daal hai. Looks like you have yet another social n’wing “technology” “product” which makes you part of the kaala part. Wake up and smell the solder.
Things aren’t flowing very smooth for wimax companies and media reports are strongly claiming that Wimax is on death bed with companies loosing billions in investment money. Sujai is a smart guy and understands this but deceiving everyone about the reality.
Entrepreneurs supporting him without understanding the malicious intent aren’t only harming themselves but the entire industry.
Good reasoning don…Sujai seemed convincing but you uncovered the real reasons behind he is not getting funding. An eye-opener for every startup what is it really like working under an unripe leadership.
Don:
Thanks for your continued concern – taking pains to follow my articles and put in your concerns. Actually, it helps if I know who you represent (anonymity doesn’t come with accountability).
We have been pitching Femto base stations since 2004 (before the analysts discussed such base stations). Time and again (2005, 2006, 2008), Indian investors snubbed it – because the market is more international. Though we had a strategic investor ready to co-invest and their company ready to OEM these units from us once developed, we have no takers from Indian investment groups.
If you represent a group, it would be interesting to know how you can help us – in addition to advising us on a forum.
Thank you.
1.I am skeptical about you being receptive to advice but since you asked, your tirade doesn’t help, absolutely not. If I were you, I would have step down after 4 years of failure and give way to a right candidate to lead the company. Bad economy, outdated technology, burned bridges, and possibly VC world’s unwritten decision not to invest in you, Sloka unlikely to raise money from any investors if you continue to be the CEO.
2.If you were a VC, would you invest in a company existed for 4 years, having no revenues and still runs behind the VCs? Why aren’t customers buying your base stations?
You know the answers.
This seems to be a personal attack on Sujai. This is neither the place or context to have a conversation with your views on a specfic startup.And what do you mean by “I would have step down” and “VC world’s unwritten decision not to invest”. Very fishy.
I am amazed ‘Don’ chose this platform to give gyaan to Sujai – is it the frontal attach on the Dons of the world that made Don com out in the open with this? I am sure if he were this candid in a one-on-one feedback to Sujai, Sujai would have absorbed all relevant stuff from that. If Don didnt do this earlier and waited for this post by Sujai, then he clearly lacks the Investment Leadership that IMHO is sorely lacking in this country. If he did, then it is a lesson for all entrepreneurs to ALWAYS heed the investment community. The former does seem more likely since in general, it is impossible for an Entrepreneur to not heed the general community, leave alone the Investment one.
Good VC bashing.
Good comments (Don) and Good recomments (again Don).
@Don were you working with sloka before? you just ripped off the whole article… why r u so angry about sloka’s CEO? U still think the
company is great producing great products and only the CEO is not good??
WiMax is considered a disaster by all major players…unless Sloka
does that differently (either in making…4X is not a good number
OR for different set of audiance which the biggies left).
But, i can’t digest this article about a company which won so
many awards are not able to attract a decent funding….
something fishy!!
I concur, something fishy. Hint “VC world’s unwritten decision not to invest in you”
Insightful discussion. I think both sides are at fault. People living in glass houses shouldn’t throw stones.
I am ashamed of some of us who are not able to have balanced view. There is one principle. And, if you fail to apply that one principle fairly to both sides, then you are not principled. If we expect ‘Don’ to go one-on-one, same applies to Sujai.
One thing i am sure of that Sujai looses credibility in my eyes.
When did this post turn into a review of Slokas products ?
Thanks for the post, makes a lot of sense. A VC with a vision and the commitment to back a team is hard to find. Most of them find in models that have worked earlier.
Having raised seed money from Singapore after meeting many seed stage / early stage funding in India, I have the following observations to make with a clear disclaimer that there are outliers :
1) I agree with Sujai about very few VCs even trying to learn enough about your business/industry/customers/team before taking a “view” on it.
2) Indian VCs tend to waste a lot and lot of time discussing things immaterial to an early stage deal. I spent months and months with them but closed it with the Singapore fund in 4 weeks.
3) Having said that, I think given the stage the ecosystem is in, the quality of dealflow, the size and number of exits being seen, and the fewer no. of investors, this is normal risk-averse behaviour.
Ideally, all that should matter at a very early stage investment is the quality of the team, the investor’s chemistry with the entrepreneur and the vision/potential the idea carries. If we wait till companies learn to stand on their own feet, build their own business models, and start generating decent traction, we might miss out on the next Google here.
Entrepreneurs – generate cash from customers – it’s the best funding there is !
It’s a shame! It show the true face of deteriorating relationship between VCs and startups of this country.
Don came out with valid points but concurrently too harsh – he could have shown maturity to settle it one-to-one instead of ripping off a reputed CEO.
Sujai is a repeat offender on every opportunities he gets & his stories are becoming so ho-hum now (and incredible too, read dons comment). I think maybe this humiliation will make him understand.
Admitted that some VCs are not treating startups fairly, a few startups blanks out on a fact that raising money is like a sale process. It takes a significant investment of time, energy, and intellect to sale it to them. and if you are failing there, shows your incapableness to handle customers.
Whatever the case may be, startups in this country are in regretful state.
Dude,
WTF ? what’s with “shame” and “humiliation ? Looks like you get all your news from Xinhua.
Hey the discussion afaik was about what vc’s can do .. if DON has a point of view on what sloka has done wrong , pls go ahead and write another post I am sure Ashish would be interested in hearing. BTW, right now I am struggling to name a single technology company funded by Indian VCs recently .. where the game is IP and technology and not so much about business models and proven markets.Don, can you pls help me name one?
@Test
I know IDG-ventures (India)…do u call them IndianVC!!
Have invested in 3 companies Perfint (healthcare) and 3D-compression
(graphics related) and ConnectM (telecom).
I donno what they are doing in-terms of business but their starting point
of investment were on IP.
Hope this serves your search for one-indian company
.
Are you sure the starting point was IP and not their internal connections with IDG or whoever funded them? I came across 2 cases in which you may be able to raise instant funding in India
case 1:- Be related to managing partner or a senior partner at VC firm best case, get married to one ..:-) (Wannabe entrepreneurs , take note … quickly) .
Case 2 :- Every VC partner has a failed dream of doing some obscure business like “something in security” or “something in mobile payments”. If you happen to be close enough to the VC and create a half baked business plan for the dream .. bingo , you will get funded most often than not ..
Oops did I let out another “VC world’s unwritten decision”?
Man look at the world around you .. millions are poured in “me too ” businesses with absolutely confused leadership like m$#g*%b@x, g@r%j$,s#$g&^s$%p and ones that takes the toast like m%$j, or j&%y s#$%&s at obscene valuations.
And other businesses with much solid ground based on great technology and revenue paying customers remain abysmally under funded sloka is just one example and there are many many more.
@Ashish, instead of hottest startups , let’s have a competition, which one according to your audience is most deserving and still unfunded / underfunded startup? You/panel gets to choose the nominees I imagine Sloka has already made it’s case .. who else .. ?
Another thought which is the most undeserving but heavily funded startup ?
Let the bitch-fest begin
I have been a silent observer of this complete thread and couldn’t resist commenting now.
@Don, You articulated your points very well and I do not deny (neither endorse) since I do not know the complete facts, but for the sake of discussion, let me accept those.
As you mentioned, Sujai was not able to position his products. Don’t you think he could have been if he could have got the money and right people at the right time? 2005 was the right time when people were investing in WiMax. Despite of that, why Indian investors did not invested? (802.16e came much later) Anything to do with risk taking ability? The irony is that we are living in a country who gave the brightest engineers and technologist to the world and VCs from the same country are shying away from taking technological risk.
While Sujai’s approach may be wrong in bringing up his opinion in public and tirade (as you call it), but then what are the options left with him? If he would not have, then somebody else and if no one, this will continue.
Let’s be fair, if you think he (or any entrepreneur) is doing wrong in bringing up his opinion in public, why don’t you do the same thing, be blunt and tell us at once what we bunch of jokers (Indian entrepreneurs) are doing wrong? We will gladly listen and work to improve. At least it will make the oven clear for the next bake and everyone to have their share of pie.
I completely agree with your point about ‘Informed Risk’. Everyone is here to make money. However, I will be very interested in knowing the names of few startups where any Indian VC took the informed risk and succeeded. I am sure you will have a hard time. People here can name hundreds of so called ‘informed risk’ you took and went down the drain. I am sure companies like Sloka would have given you much better returns, is your vision button working properly?
To be honest, if VC puts some effort, entrepreneur will gladly work with them to identify and minimize the risks. But it never happens, the discussion usually remains superficial and biased with pre-conceived notions and if progresses, shrinks to dilution, valuation and some US company already ventured into same field so how will a poor Indian will succeed. Let me ask, did any VC ever took pain to speak with Sloka’s customers?
Someone mentioned 3D compression, ConnectM etc. Please get your facts right. They are funded because they are backed by big names, ConnectM (Sasken), 3D compression (IISc). Does this mean, VCs need big names to venture into and not relatively unknown people like Sujai? Hey Larry/Sergey, don’t choose India for your rebirth, you will be sorry (I am serious).
I had a chance to hear Sujai couples of time and I must say, he is passionate about anything he does. Name me a single technology entrepreneur who ran company in India for four years without any funding. You will have a hard time. He may not be perfect but who is? That’s a journey, don’t pursuit for the perfect.
All we need an environment to grow this ecosystem, VC and starups working as a team to make next Google or Microsoft rather than finding each other’s fault (like Israeli investors). Both are needed for each other existence, VCs are here because there are startups and the vice versa.
People have bright ideas; you just need to believe in our people. If you can’t help with money, help them with business and connections. I am sure entrepreneurs will never ever ‘tirade’ again.
well said bhai!
I think that this discussion is turning too personal between Sujai and VCs (as it is made to turn out to be, which is not the right way to go).
Lets stick to finding out some facts :
1. Is Venture capital reaching people who need investments ? If you look at the amounts of money VCs have funded their portfolio companies with, and poll 200 startup companies (as a sample), you will find out where the need is and where money is getting delivered.
2. Is VC funding in India coming too late ? Take Twitter versus SMSGupshup for example, or a Minglebox versus Facebook. How much funding did they attract in their first rounds of funding ?
3. Even as I suspect over-capitalisation of startups funded by VCs in India, what is the record of returns on investments from India VCs ? We can compare amounts invested and exits both dotcom era VCs (Indocean Chase, Infinity, Global Tech Ventures, Chrysallis, Walden, etc) and the current era VCs are returning. I am assuming that Indian VCs will return superlative RoI because they seem to be investing in later stages and investing lots of money in low cost businesses in India, am I right ?
It is wrong to accuse Sujai on account of him trying to raise funding and running his company with difficulty for 4 years. If anything, it shows his grit, passion and perseverance – qualities that every startup CEO should have.
All – no more personal attacks.
Stick to the issue that is the core of this interview.
-Ashish
Thank for bringing this up!
DON, first let me acknowledge you for the knowledge you have in WiMAX space. As usual you want to be recognized as KEY guy and ends up with a KEY to your name. Sujai doesn’t given the job to you, doesn’t mean you should attack him personally.
For all those people out there, we few people lost our jobs in one of the MNC Company, due to SLOKA is much ahead of us in the same product. We hate Sujai for that. I hope you understand.
Sujai, take this piece of advice, when you roll with a pigs, for them it is play. It is you who gets dirty.
Lesson learned from this post: If you are an employee you will tend to making enemies in your team, max in your company. If you are an employer you will make enemies in the outside world also, especially for reasons not known to you. The more the years you are an entrepreneur, the more the enemies you will make.
Last but not the least: DON, you are always the KEY man. You always have the extra KEY with you.
I have sympathy with Sujai and had not malicious intentions to expose him. However, it was necessary to bring the facts out after his one-sided tirades so that everyone knows the real background. Perhaps, VCs might be at fault here, but it has more to do with his capability to raise fund than to VCs.
Good to be passionate as long as you do not lose sight of your competitors and industry. There is always a thin line between being passionate and being obsessed over something. Being passionate about becoming the US president does not produce good president; at worst it will harm the citizens.
It’s not important that how long are you running a company, more important is how good are you running the company. Sujai still brags about 24 month old France deployment. Reality is that it was a test deployment after which Sloka was rejected and it was granted to Alvarion. There are no more paying customers for Sloka.
VCs are not morons as it was persuaded to believe, they do their homework. If you still feel this is a personal attack, take your VC buddy for beer and substantiate these views.
Dear Don:
I apologize for expressing my opinions on this forum. You have done a good job in denigrating my team and their accomplishments. You have to understand that I did not target anyone in particular, either by taking the names of people or their organizations. I kept the criticism vague enough taking precautions not to isolate anyone in particular. You can know from the train of comments that nobody associated a particular incident or event to any particular partner or VC firm.
I have learnt my lesson – thank you for teaching it to me. I will wait for the day when investors and entrepreneurs can see eye-to-eye and discuss business across the table as mature men. I will wait for the day when they come out of their cloak of anonymity and express their opinions as mature men taking accountability for their opinions and actions.
Till then, good bye! And also, Don – a special request, please stop further slander of my team and my company. Their hard work and passion doesn’t need to be ridiculed like this on an open forum – I take responsibility for putting them such a situation. I don’t think I have criticized you or your team in particular – in fact I did not mention any names in my articles. It would have been nice if you had extended the same treatment to me.
Since I do not know who you are, I am not sure if I have offended you in the past, maybe I refused your term sheet, or did not take your advice, or did not hire you – I apologize for that also.
Thank you,
Sujai
@Don The points that you raise are valid. But its an textbook example of how not to offer criticism. You want us to know the other side of the story. But its not credible. You cannot hide behind the cloak of anonymity, say things, offer advise and expect that we’ll believe what you’re saying. On the contrary it looks like you’re trolling.
You seem to know Sujai personally and have been following Sloka. I also happen to be good friends with him. I offer suggestions to him too. But I’ve never felt that I’m not being heard. Rather I think that when put the right way, Sujai is as open to criticism as anybody else here. And I think a lot of people in this community will vouch for it. If you are being forced to hide yourself then something’s definitely wrong with your approach.
@Sujai Please do not take this personally on yourself or your team. You are sustaining yourself, building your product and making revenue today. You are the one who brought Sloka to this point. Everybody here knows how tough is it to build a sustainable business around your product. You have done it! The ‘unwritten rule’ of the VC community is not going to kill you. It will only stunt your growth. You’ll still survive. And that’s a big deal given the state of the telecom equipment Industry and economy in general.
Personal attacks aside, IMHO all these are signs of a immature ecosystem. To think of it, the IT Industry itself is around 20-25 years old in India. A lot of people are still trying to figure it out including the VC’s and entrepreneurs. We are at least a decade or so away compared to the Valley. Even there its tough to raise VC money. Its just a hundred times more tougher here.
On the bright side, now is a great time if you want to contribute to the ecosystem. You can leave your mark for posterity!
This is one of the most interesting comment sections, and i want to congratulate Sujai for having built a core tech product from out of India, and for having gotten as far as he has done.
but just one advice, the Indian startup ecosystem is just about evolving and its a small world, everybody knows everybody else, so word does get around pretty quickly.
You are better off with well wishers as opposed to ppl who bitch about you.
So id say, please save the rants for your buddies. End of the day, your investors are going to be partners in your Business.
Came here too late to read this post. But after reading the comment section, I thought it is pertinent to put in my opinion before I leave.
@DON : Whatever genuine suggestions you had to Mr. Sujai, the way you have put the comments shows your upbringing. Man, it takes balls to run a company. More than that to run a technology company in India. Others like you sit in the gallery and start criticizing with malicious intent. Be productive, why didnt you try giving those suggestions directly to him via mail. Guess, it would have helped him alot than putting it in an online forum. No..you dont want to see him grow…neither do u want to see tech startups in India grow.. You couldn’t do it..so be it..right ?
There is a collective responsibility on anyone associated with startup ecosystem in India, not to cut the branch where we are sitting. Pls do remember that.
@Sujai: I dont agree fully to your observations about VCs in India. I had read a similar reflection from you in some other forum an year ago. Guess, your opinion hasnt changed yet. Good time for an introspection ?? May be you havent packaged it in the right form to a VC. I reiterate, there is no dearth of Money for a startup in India. Yea, lot of money has been wasted on me-too web startups…but doesnt mean you wont get what you deserve….if you truly deserve.
Sloka is an inspiring story for entreprenuers like us. Am sure, you will go to greater heights. Keep up the good work and position yourself better. There are many well-wishers for you. Ignore Don, but not his suggestions
You’ve hit the right nerve.. The aching spot in my own heart.. THIS you just narrated is OUR story too.. My company’s story.. What can i say..
Read this..
http://economictimes.indiatimes.com/Infotech/Tech-Mahindra-in-talks-to-buy-Sloka/articleshow/4251709.cms
Tech Mahindra is interested to acquire Sloka Telecom. I saw the news on the Economic Times as well. However, the price tag of 30 crore for a technology company with proven technology and a bright market seems less. Tech Mahindra it seems is in a hurry to enter into the niche market of WiMAX deployments. A good move.
Tech Mahindra in talks to buy B’lore start-up Sloka Telecom
http://economictimes.indiatimes.com/Infotech/Software/Tech-Mahindra-in-talks-to-buy-Blore-start-up-Sloka-Telecom/articleshow/4253459.cms
I am searching for Sloka Capital Advisory Services Private ltd. websites, to communicate regarding their advisory services , required to us. if anyone knows similar service provider websites, any consultancy firms , kindlycommunicate :seedamfi@gmail.com / mobile: 9880226745