Paul Graham has an interesting approach for seed funding. Maybe there is something we can learn and adapt. Some of us in Band of Angels may like to launch a Y Combinator . To do a proper launch will take some time.
This post is just a test check to see what prospective entrepreneurs in India think of Paul Graham essays and the Y combinator approach.
A few things I found interesting
1. YC looks for ideas and entrepreneurs and not business plans. It helps incorporate companies and get the entrepreneurs ready to get funding if required from angels/ VC’s
2. YC does not invest much. Maximum it has invested in a company is $24,000. It takes upto 5-7% of the company
3. YC seems to cater to entrepreneurs who have fire in their belly, good ideas and the ability to execute rapidly. They also need to be first time entrepreneurs who need help with getting started.
4. YC is not an incubator. All founders have to be in a sort of boot camp for 90 days but they work out of wherever they live.
I am in Delhi for just a few days in Sep/Oct so will investigate launching a Y combinator type play in India in November if I find enough interest.
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I think the YCombinator model can definitely work in India. I’ve been to Indian barcamps and seen the excitement building arround the idea of starting your own firm: there are MANY good people that want to start their own thing.
Given that in India it is more socially acceptable to live at home with your parents, the 6000$ USD could go quite a bit further towards proving out interesting ideas than it does in the US.
Such a venture should be based in one of the Indian tech hubs, and should leverage a standard server infrastructure (and perhaps have one full-time UNIX sysadmin that can get teams up and running).
Hi Sanjay,
Great post. I’ve been looking at YC since it launched. I think the *biggest* ingrediants needed are:
1. Quality of mentoring specifically in the targetted area of work, which is often harder to get than people of the other type like to think
2. Credibility, and, quality and quantity of contacts
If this can be brought to the table, along with logistical support, I think it would be absolutely great value.
A combo of ideas of YC and IITB incubator can also be a super do.
cheers
R
I would like to discuss my plans with you .how can i contact you ? any email id ?
Sanjay,
This is what is needed for first generation entrepreneurs as I have already mentioned in one of my responses here http://www.venturewoods.org/index.php/2006/08/14/iim-a-visit
3 months mentoring with focus on getting the prototype developed, getting the company incorporated and some training from subject matter experts (taxation, compliance, structuring compensation package for employees etc) and providing some business leads.
The YCombinator philosophy needs young engineers with few attachments. I feel that in India, the recent engineering graduates are too tempted by the salaries they now command to try their hand at startups. If you are seeing more younger people coming to you, this would be a good idea to try. Mike Taber illustrates this point more strongly at http://www.miketaber.net/articles/StartupsForTheRestOfUs.aspx
Another key ingredient to YCombinator’s biggest success (reddit) is Paul Graham. He commands a lot of respect in the (real and wannabe) enterpreneur community, and he became really well known after he started writing his essays. Maybe one of the BoA should write a Hackers-and-Painters style book and blog to develop a similar fan-following 🙂