Comments on: You say lack of angel funding, I say lack of startups

By: ameeruddin hudda

ameeruddin hudda — Wed, 11 Aug 2010 19:39:19 +0000

Here in hyderabad i am a financial consultant for one software company who recently developed a software solution related to ELECTRONIC HEALTHCARE RECORDS, which will be mandatory in USA from next year. This is a very good product and for that this company are looking some angle funding and i highly recommend if somebody are ready with their investment. Company is also ready to give collateral security with a good returns. plz contact at 09391154564

By: Parag

Parag — Sat, 08 May 2010 07:01:43 +0000

From an IT services startup perpective ,I still think getting seed funding is very difficult.

Maybe because the idea of scalability in IT Software development is primarily either
a) Increase the number of employees
b) Increase the number of domains
c) Get your presence in the primary software markets – UK and EU

My experience in funding negotiations is bizzare –
“Prove your worth for 5 years with a 100% growth and then I will fund you” There itself I think there needs to be some education to be done for the funders as to what seed capital is , what working capital is and blah blah blah.

But they got the money and they are always right by that virtue.

My suggestions to the wannabe startups is to work on a startup full time rather than part time and stick to it through the ups and downs. Staying afloat will ensure you get opportunities now and then which you need to grab and see if it takes you through ..

By: Saurabh Garg

Saurabh Garg — Sat, 03 Apr 2010 09:21:36 +0000

If I have an idea which isnt new. Not new in the sense that it already exists in foreign markets but not in India. Will such an idea receive attention for seed funding.

By: Tarun

Tarun — Wed, 07 Oct 2009 06:57:01 +0000

Someone make a website about crooked indian politicians and lazy corrupt government clerks.

By: pranav

pranav — Tue, 22 Sep 2009 14:19:13 +0000

I’m not sure if you’ll be able to find such a consultant. A lot of this is groundwork that falls upto the entrepreneur.

By: Abhijeet Sojwal

Mon, 21 Sep 2009 00:11:22 +0000

I need a consultant, of course paid one. It is very important to present the project in a right way, I failed previously because of poor preparation of the project. However there are super flop projects that got Huge VC’s, some how I knew those before they started, but what VC’s looked in to it was that (1) That the Guys are from big universities, or (2) were working in similar setups in US and UK.

Yes there are kidos out there with super flop ideas with really huge dreams, like modeling websites, dating websites, online schools, Indian language translators to name a few, these kidos need guidance.
If anyone knows any consultant to guide me thru how to present the idea, and from where do we get the statistics like consumer profiles industry size, Market survey data etc please let me know.

By: Irfan

Irfan — Sun, 20 Sep 2009 21:23:30 +0000

if you have the guts…. leave your job and come to the other side and then lets talk about lack of good startups….

it easy to say things from the sidelines….. people who are managing their companies full time …. face the music everyday, unlike people like you who put their blogs/ comments in their free time….

By: pranav

pranav — Sun, 20 Sep 2009 05:22:14 +0000

point taken..

By: pranav

pranav — Sun, 20 Sep 2009 05:21:32 +0000

part time – yes.

how about yourself ? if you didnt hide behind some anonymous id, it’d be easier to take you more seriously.

By: Irfan

Irfan — Fri, 18 Sep 2009 14:08:09 +0000

What is your background in entrepreneurship Pranav? It is easy to say things from the sidelines…..

Have you ever taken a plunge in startupdunia ??

By: Roopesh

Roopesh — Wed, 16 Sep 2009 11:04:25 +0000

Perhaps the VCs should consider how this situation has come about, and how ?

Any wannabe entrepreneur does some research – What does he read – either funding in millions (late startup stage generally) or B-school competitions!

The latter clearly is ‘paper plan’ funding, and that is what one mostly hears about – i am sure you all have also heard stuff like ‘I am interested in a startup, but not with my own money!!!

i think the VC community (including TiE etc) have taken the wrong tack in becoming well known. They certainly are well known now, but within this surfeit of people/ orgs professing to encourage entrepreneurship, there is no real help available readily. There is either talk (TiE) or B-school competitions that gives people the wrong idea..

Who is going to tell these wannabees what has finally been said in the above article – if you dont believe enough in your own idea, enough to risk something, then no one else will…

By: pranav

pranav — Mon, 14 Sep 2009 13:43:18 +0000

One reason may be that indians do not really risktakers

I dont quite agree with this. If that were true, how would you explain the very same set of folks arriving in the US and then becoming entrepreneurs ?

By: pranav

pranav — Mon, 14 Sep 2009 13:42:11 +0000

I never write in Blogs – well i have made this exception.

Thanks.

By: pranav

pranav — Mon, 14 Sep 2009 13:41:25 +0000

Muraleedhara,

I dont dispute the fact that we do need more angel investors who are afraid of taking the risk.

however, i dont blame the VC’s for being risk averse in the Indian market. There has hardly been any M&A activity, forget about IPOs. If the VC’s are not seeing any concrete return on investment, why would they invest ? After all, they have a business to run as well.

By: vikram

vikram — Mon, 14 Sep 2009 08:12:02 +0000

i agree with you i started a new project and looking for a investor but it is difficult to get one.

By: Raghu Pandey

Raghu Pandey — Sat, 12 Sep 2009 11:06:52 +0000

Just a suggestion….

To enhance the clarity of your msg for non-programmers/non-IT entrepreneurs pls write the three tenets in simpler language.

“Entrepreneurship != Anything goes” can’t be read by many readers as you’d want them to!

By: Anonymous Koward

Anonymous Koward — Sat, 12 Sep 2009 09:02:58 +0000

It is a catch-22 situation. Both sides are a little scared about the outcome. I think this will change sooner or later. Till that time, just wait.

-Arun (Anonymous Koward)

By: Anonymous Koward

Anonymous Koward — Sat, 12 Sep 2009 09:00:35 +0000

I agree with you partially. So many people want to keep a main job while doing their ‘idea’ as side projects. One reason may be that indians do not really risktakers — just like indian VCs.

As Ranjeet said above, what is the risk taking potential of indian VCs? Are you ready to invest in a startup which doesn’t have a proper revenue model but will yield large user base? Are you ready to accept ‘number of active users = value’ kind of model? it is arguable, but how many indian VCs would have been interested in Twitter?

It is catch-22 situation. Both sides are a little scared ab

By: Rajat

Rajat — Fri, 11 Sep 2009 14:25:20 +0000

In the field of software ‘execution’ is more important then idea’s i believe.
There can still be a better search engine, or a better email system whatever.
From your post its good to make out that more people are starting side projects, no matter if they fail, starting is more important.If you see the first version of flickr you will think of it as a dumbass product made by some student in 6th standard, but it is what it is today.
VC donot fund in india because they want a safe bet, they lack the risk appetite of the western world.Its much easier to get funding if you start some manufacturing business then software business – Correct me if i am wrong on this.

By: Arun

Arun — Fri, 11 Sep 2009 13:23:46 +0000

Hi Guys,
Great topic. But believe me you are all talking about a very valid and potential business plan – Find Funding.

Have done some digging around – Most of the Ideas at the concept level could be Ok. They are so because the knowledge is limited and so is the exposure.

80% of the VC funding or Angel Investment gets into financial markets for spinn off -it is fast and the market is structured and organised.

Other 20% is networking, for the few Select business class.

India is still very much in infant stage in terms of VC and angel Investment – if entreprenuers werent there in India – we would be still a Backward country. Pls do keep in mind that 70% of the work is employed there – small or big they are still feeding our hugh population and are the backbone of Indian Economy.

Good Minds can get this situation corrected but alas who has got the time.

I never write in Blogs – well i have made this exception.

Will i start the Change look out!!!!!!!