Author Archive for Vijay Anand

Is Micro-Funding a New Trend to Come?

Published by Vijay Anand on August 27, 2009 in Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (8 votes, average: 4.13 out of 5)
Loading ... Loading ...
 20 Comments

A lot of folks seem to be very curious as to what I am working on, since my stepping back from Proto.in. Well, quite a bit actually and on some rather serious stuff. Serious as cash, infact. One of the major concerns that has been on my mind is the scarcity of capital in this market.

I am absolutely with the camp that believes that if there are quality companies, then capital will find its way. But we also know as part of most of our risk mitigation strategies, making a leap into a market with no safety net or partners makes it a really serious gamble - even for some of the most well-versed entrepreneur to tread in. I strongly believe that unless we enable some capital to flow, we are not going to see much of a difference in the number of quality startups that spring up, and inevitably the number of startups that get funded/get recognized, and the number that make an exit. This cycle, as you know is recursive.

So What have I been obcessing about? I’m focusin on three aspects and I think all three aspects are crucial.

  1. The mechanisms for loans from banks to become accessible for startups/SMEs
  2. An effort to bring together the Angel Investment Community, educate them and help them engage in an effective manner
  3. An effort to fix the “broken VC Model”

The First and Second are fairly straightforward and I promise to come back to you with some better news soon. But this is primarily about the third one.

I think the third one warrants a closer look for a simple reason. People have been claiming as long as for the better part of the decade that the VC model is broken and there seems to be no heed to that warning. Whats worse is that given that India couldnt be farther away from whats happening in the Silicon Valley in terms of similarities, the model is a force-fit one (There are some better models in Israel, Singapore etc). If you’d understand how a VC firm works, its primarily a specialized bank which runs on a management fee and bonus paid with the return on the investment. The overheads of running such a team is so high, that the only viable way for most firms to operate is to increase the fund size, which sets the ball rolling on them getting into a soup not able to invest in early stage no more, and the next thing you know they are either full-fledged in growth stage, or are in growth stage and are disillusioned about being an early stage investment firm. Suddenly working for a VC firm or being one doesnt seem so glamorous, does it? :)

What we need in India is essentially a firm which is capable of dispensing funds as low as 50 Lakhs to a crore (I am consciously keeping figures in INR to make it a point that we arent in dollar land and the rules and requirements are different here) - which can operate at lower costs, and can also manage a sizeable portfolio.
Continue reading ‘Is Micro-Funding a New Trend to Come?’

The Tweetie Helpline | @start24×7

Published by Vijay Anand on July 22, 2009 in Ecosystem.
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 3.25 out of 5)
Loading ... Loading ...
 0 Comments

So, We have been kinda noticing this trend. Forums are great, and with the present rate at which the startup community seems to be growing, there is more and more a need to be real-time. We felt it, just by the way we were interacting with people on twitter, but there was certainly a need to do more.As of today, the Indian startup community has a helpline. @start24×7 Continue reading ‘The Tweetie Helpline | @start24×7′

Who Owns The Company?

Published by Vijay Anand on June 17, 2009 in General and Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (6 votes, average: 2.5 out of 5)
Loading ... Loading ...
 8 Comments

Once in a blue moon, this situation repeats itself. The board of a company along with the stake holders and investors are pushing the entrepreneur towards a direction and he/she is really not liking it, and tries the ownership card. “This is my company, and I do have the best in mind for it”. Nobody usually reacts to those words, but technically one could throw you out for making statements like that. I’ll start with who doesn’t own a company - Its the entrepreneur.

Whoever sold you the romanticism that being an entrepreneur meant being your own boss, was clearly lying. You really never escape the chain of command and reporting structure so easily - not in a civilized society. So Its no wonder that things don’t span out as they say. As an employee you might be accountable to your boss, but as an entrepreneur you are accountable to all of your clients, stakeholders and employees. And every one of them holds you responsible to have the answers and do your best - that’s no different from being an employee times ten. Think about it.

So here’s two things you must know. It is crucial to understand this because this sets the context to understand a whole lot of things that happen through the course of the company.
Continue reading ‘Who Owns The Company?’

Brad Feld, On the Ecosystem.

Published by Vijay Anand on March 19, 2009 in Ecosystem and General.
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 3.67 out of 5)
Loading ... Loading ...
 2 Comments

Came across this blog post by Brad Feld, on his observations between VCs and Entrepreneurs and the so-called Ecosystem to speak of.  It’s kinda an interesting read.

Brad Feld on VCs, Entrepreneurs and the Ecosystem.
Some of the highlights:

I’ve long believed that the entrepreneurs are the motive force behind all entrepreneurial ecosystems – not the VCs, the other service providers, the government, or anyone else

I regularly hear people – including very smart and experienced ones – assert other things such as overstating the importance of the presence of VCs to the entrepreneurial ecosystem.

VC’s play a role in all of this, but it’s one that I regularly feel is dramatically overstated, misrepresented (including by many VCs) and misunderstood.  We provide different resources and value than lawyers, accountants, investment bankers, and PR and marketing firms, but we are still simply one of the inputs into the entrepreneur ecosystem.

The Startup Chat. Every Saturday 10am - 5pm.

Published by Vijay Anand on March 7, 2009 in Ecosystem and News/ Events.
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 3.25 out of 5)
Loading ... Loading ...
 2 Comments

There is a lot of knowledge that resides among people, and not everybody is able to make it to real-life meets. In an increasingly connected world, it might make sense to make use of the technology that exists. There are also a lot of folks - aspiring entrepreneurs in tier II cities who do want to make it to the ranks, but do lack the know-how to move forward.

Here’s a means to solve that Problem.

Proto.in, along with VentureWoods and a host of other partners have started this online chat initiative called The Startup Chat. It will be live every Saturday between 10am - 5pm (IST) and people can connect to the site, login, and interact with people to get support in whatever they might be looking for.

It would be great to have the support of this community - as there are lots of mature and experienced entrepreneurs here. Do login and help out. And it would be great to catch up with all of you in real time as well. Look forward to seeing you there.

URL: http://chat.proto.in

Some Nuggets on Starting up, and Scaling Out

Published by Vijay Anand on February 9, 2009 in General and Ideas & Companies.
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 1 out of 5)
Loading ... Loading ...
 0 Comments

These are links to some presentations that were part of Startonomics, a conference for Startups. There are some very good nuggets that most of our companies could benefit from:

1. Moving out of the Garage:

2. Product Development 101 (Fast Track Product Development)
Continue reading ‘Some Nuggets on Starting up, and Scaling Out’

We Really Don’t Dream Big Enough.

Published by Vijay Anand on November 2, 2008 in Ecosystem and Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (6 votes, average: 4 out of 5)
Loading ... Loading ...
 12 Comments

I grew up with a poster in my room saying “The size of your world is as big as your dreams”. It was always there when you woke up to remind you to think beyond the box. It still hangs there in my room at my parents place. It’s the thought that came into my mind when I was browsing through the net, listening to some of the folk’s interpretation of Entrepreneurship.

It seems  to me as if there are a couple of theories floating around these past few weeks.

a) Entrepreneurship is overrated. Entrepreneurship is romanticized, and the often tweeted and retweeted phrase seems to be “My son is without a job, ah! he is an entrepreneur”. Well, That’s probably pushing it far, and yep, perhaps we are breaking the elitism that was once associated with being an “entrepreneur”, but isn’t this what we wanted with all the publicizing that we did and urging one another to chase their dreams? I do see that this could dampen the ones that pride in elitism, but as far as things go, there will always be a gulf between those who can dream, ideate and implement, and those who just wear the badge and do nothing. And really, the more the merrier in this party.

b) There is also this other camp, that seems to think that, Entrepreneurship is too Web 2.0-ised. I can emphatize with this camp.  I dont think entrepreneurship in India is equated with a venture in the web 2.0 world, but most of us derive our first impression from the media that we consume and web 2.0 is essentially Media and new age consumption of those content. You get hit by it in the face over and over again, till you find something interesting. That doesn’t mean that there arent other sort of ventures going on out there. Manufacturing is still one of our strongest sectors and there are plenty of neat things cooking up in that camp. So for those of you freaking out with the thought of drowning in Web 2.0 Gyaan, take heed, there is a bigger world out there - you just need to step out more.
Continue reading ‘We Really Don’t Dream Big Enough.’

The Startup WorkForce : A Proposal to the Community.

Published by Vijay Anand on October 12, 2008 in Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (7 votes, average: 3 out of 5)
Loading ... Loading ...
 27 Comments

This is a wonderful time to be starting up. You will come across very few people who will give comparisons to all the benefits they get working for big corporates. Its one such time. Hiring will be slightly easier, and retaining them will be even more easier.

Even in the midst of all that, it does seem that a lot of the Startup Companies are hardpressed for resources here in India. Here’s a solution.

A few of us have been talking about putting together a centre that trains people (as blank slated as freshers) on the common technologies that people use while building Web related products - the usual PHP, Python, AJAX, MySQL, etc etc and getting them upto speed on mashups, APIs, documentation, and moving forward. That is the level of skill that most of the startup community folks are looking for it seems. Or am I wrong here?

If I am right, then there is a simple way around it. Every chapter of OCC in the country is doing quite well. I heard from Santhosh that Pune is a 300 people group now (though I do suspect that the turn out ratio would be still less), but who knew Pune had 300 people who would be open to being part of a community right? And the same case has gone on with Bangalore, Kolkatta, Hyderabad, Chennai, Delhi, and even now and then with Mumbai.

Here’s the thought. What if in one of the OCCs a dozen of the startup companies, especially the folks who can code and code really well, commit that they will run a two month training program for people in these languages? It is going to take a bit of time and commitment, but there are a lot of resources already on the web, and with a couple of screencasts, and proper documentation, you could essentially also use it as training material for the next batch of people that you hire in your company later on.

What I am proposing is that a batch of technology entrepreneurs, each taking a week to cover different aspects of the course, could put their hands together to collaboratively solve an issue which is haunting a great many of them.

Continue reading ‘The Startup WorkForce : A Proposal to the Community.’

Ideas To Toss: Advertisement Networks for Mainstream Media.

Published by Vijay Anand on September 12, 2008 in Ideas & Companies and Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 4 out of 5)
Loading ... Loading ...
 3 Comments

Note: This post is a rehash of a post made on my Personal Blog, about how Yahoo should alter its strategy to focus on other streams of media for contextual advertising. Realized that there are lots of hidden opportunities for Startups as well within this space and here it goes…

A friend of mine and I, over some conversations were discussing about some of the bigger brands that we see around us and something along the topics of Return on Equity. Not sure if you are aware of, but Microsoft has a 52% return on equity. Yahoo has roughly about 7% and falling drastically and Google has one which stands at around 26% - and growing steadily. Whatever you may say, Microsoft has played this game with a whole new set of balls and one most people simply won’t understand. And if you ask me, they are a much better company in terms of strategy and products compared to most other giants, anyday.

But that’s not the focus of this post.

The conversation was that, if a company has Advertisement as its core strength and has built a competence in it, then its going to be very hard for the company to drop that and adapt the advertising network of its partner/rival. Well, for the case of survival they might, but since they do have the core competence, the resources and the minds that can think in that direction, what could they possibly do, was the question.

I’d say, flip the coin, and lets look out to the horizon. Go after other streams, television and Radio… to be precise.

Continue reading ‘Ideas To Toss: Advertisement Networks for Mainstream Media.’

A Funded Startup: An Alienated Brother?

Published by Vijay Anand on June 10, 2008 in Musings.
1 Star2 Stars3 Stars4 Stars5 Stars (10 votes, average: 3 out of 5)
Loading ... Loading ...
 10 Comments

I have seen this cycle happen over and over again. There would be a set of guys who’d be around in most barcamps and social circles and someday they’d decide to start a company, and eventually build a product that’d gain quite a bit of traction from the “first adopters” that you find in barcamps, MoMos etc and then the worst thing happens - they get funded.

I have stats that show that more than 80% of companies whose growth and traction flatten out after getting funded by a VC firm. I’m asking myself the question if the founders were such shrewed and capable executioners that they planned the entire stunt just so that the popularity lasts till they get funded - but I doubt thats the case. So what then?

I came across a note where someone mentioned that people who get funded barely go back to the social circles after that. Partly cause those circles disown them because of whatever has happened to them. VC funding is not the golden egg, its more of the long-term, high interest, loan that is given to a company hoping that it would make it big, but for most folks getting funded is the end goal and such folks starts treating companies that have gotten funding as if they are Cinderella’s step sisters. The welcome is not there anymore, and there is no reason for these founders to go back to those circles anymore. They retire to the boring life of going out to meet peeps in baristas and coffee days where more pleasantries are exchanged than the actual meaning or weight of words.

This is actually very bad news. For the funded startup its very much so cause these early adopters essentially have dropped a baby on its head, just when someone agreed that it had potential. For the rest of the community, its also very bad since its a loss of a resource who probably had figured out how things work here and most certainly had knowledge worth sharing.

If you think I am just randomly spewing out stuff, I’ll make the entire point with one reference. J’lo’s single titled “I’m still Jenny from the Block”. That pretty much drives the point across. When your folks on the block are essentially who your early adopters are, and they disown you, it becomes radically hard for your company to survive without burning hard cold cash to see if someone would take you in for some cash in return. In the language of the hood, there is no love from the brothers no more.

I for one think that VC firms should stop advertising the amount they invested. Startups that get funded should make this a mandatory point with their investors. I know quite a few firms, like Ixigo for example who have gotten funding, yet not knowing the amount keeps things quiet, calm and life still goes on. Take any company that you know of [ and probably hate ], saying millions have been funded and crazy things like that and all of a sudden I am wondering if someone “deserves” that sorta valuation. Everybody thinks or says it out loud that its unfair and a lot of enmity grows in this little pool for absolutely no reason whatsoever.

Some companies would claim that announcing the investment amount adds credibility that will get you clients. Who are we really kidding? When you are small you need to embrace your brotherhood close to your heart and they will be your first set of customers whether you like it or not. An enterprise is a hard sell and probably is only worth aiming at when you are looking at your second round. If it happens, I’d be extremely happy but do be prepared to know and realize that your first set of customers are all folks you know, startups and SMEs. By the second round, you’d have grown to a much different positioning and would also have the strength to stand on your feet that you’d survive, and also would have weaned off the support system by then.

Until then, make no mistake, you need your community and the community needs you. Some things being in secret will make that happen.

Note: The media loves to flaunt numbers. So if you are not going to disclose numbers, don’t be surprised if they don’t run your story. Its okay, they too need to evolve, understand and adapt.

A Repost from the Author’s Personal Blog, The Startup Guy.