Since we have announced the launch of TiE Canaan second edition; I have received multiple queries on: Why no cash awards? and Why no funding for winners? Funding issue is more loud and clear. I thought to share what we thought while deciding for awards:
1.) We should understand that a platform as open as TiE Canaan Challenge can’t be a funding platform. Parameters of winning this award are defined by a respected Jury. However; funding decision is very propriety to a firm and its partnership. Parameters can be different and usually are.
2.) Second and most important in my view: A company (or a team) might be good (and good is a relative judgment) but still not ready for venture funding. Does it mean that we should shy away from that company in all other ways? Probably not. There are enough examples when companies were able to close funding after 2-3 years of operations with modifications & iterations in their business models, approach etc
3.) Regarding Cash – I think we can certainly give cash rewards to winners. The examples of cash awards quoted to me are not big amounts in any way. However; we think that cash in an award form is not utilized properly and even can’t meet most of the requirements in a start up. We have consciously opted out from Cash rewards and are putting efforts in giving better and tangible awards.
Finally, I would like to impress that one should take this opportunity as a starting point for building a network and get good feedback. I understand many of us are well networked but I know lot of new entrepreneurs are not. If you hear my experience most of us are not: When I thought of starting my own entrepreneurial journey (that was just before i joined Canaan); I hardly knew ppl in the industry. From somewhere i got Alok’s mail id and requested for the time. It took me two return flight tickets (20,000/- in 2006) to get two hours of Alok. Imagine, if I have to meet 5 VCs – 1 lakh rupees gone. Here at least you can meet many VCs in one day and one shot.
I could elaborate more on Benefits and Awards since within the team we have spent lot of time thinking on this. I understand I might have scratched a wrong surface but willing to hear.
- Onion Rs65/kg, Petrol Rs65/litre, Beer Rs65! - January 19, 2011
- NEN Program for Women Entrepreneurs - September 3, 2010
- A Billion Dollar Indian Internet Company - August 19, 2010
The approach seems worth a shot but adding some aspects of ‘Y-Combinator’ would make it more exciting. How about mentoring or providing a seed-cap to the winners. Information and guidance is King when it comes to startup-VC relationship (I know you know this Mukul:)).
As far as ‘tangible awards’ are concerned, the best possible outcome I reckon is ‘Successful Network’ with atleast 3 ‘interested’ VC/Angels.
Sharing my opinion 🙂
Ashwin – Thanks for the comment and I agree: Identify the mandate and see if you are in Sync. We hope to constructively help at least 2-3 companies from this.
Nice post Mukul , I agree ur initiative is more towards getting people in the enterprise mode & understanding venture modalities. Funding is a totally different ballgame
However in response to ur post & for the benefit of entrepreneurs I would like to make some points
A. meeting 5 VC’s is no big incentive; if ur venture is worthy VC’s come to u
B. Identify the mandate & see if ur in sync – entrepreneurs have to have a clear mandate, is this a learning exercise for enterprise? if yes , it’s a good idea. If not , prospect what Hard deliverables are there to it
Personal experience – we are winners of one of the Lockheed Martin Innovation Program, the programs mandate was in sync with ours – access & commercialization assistance to North American Markets provided by the IC2 Institute http://www.ic2.org This is why we entered & The IC2 has delivered on its promise to winning technologies.. Thereafter we have not participated in a single such program as its our time & effort that is valuable & in most such programs there is a lack of hard deliverables. Message – value your time & money
C. Overvaluation of B-Plans / Ceremony Vs Hard deliverables – there is an over emphasis on the relevance of B-Plans. B-Plans mean nothing if u cant execute 50 % of what is on paper , who judges that ? Funding can be ruled out but there have to be hard deliverables in black n white e.g. get the winners 2 beta clients for their product.
What qualifies me to comment? I am founder of India’s largest Mentoring community and have a deep routed understanding of tech. commercialization. We have successfully assisted startup technologies commercialize by delivering hard assistance. http://www.linkedin.com/in/ashwinbhambri towards a validation