Indian startup founder and VC funding – some observation on both side

Sometime it will very easy to understand some startups are just eagerly looking for raising money  ! [Morpheus knows it, as when making couple of intro in recent days, just able to get this quick idea of founder’s mind from initial mail and phone talk but as they were building cool stuff (at-least i think :), going ahead with making few intros, and same experience from other startups and funding firm].Normally these folks are eagerly looking for money (without any actual execution), try it for 3 months,6 months, 1 year and then got frustu !. Nothing wrong, Natural !  [More on this below in Type-1]

If you are readers of startup blogs you may find this examples at many place like here    and here or at many other place.

And knowing both type of startup folks 1. hungry for fund and 2.passionate about what they are doing but not hungry for fund and some blog posts recent and old, here is interesting observations, summarizing without revealing much (unnecessary personal/professional) details.

These observation are not in recent month or not only with one startup, but since last 3-4 years time  and its average out.

To get fund from Indian VC/Angel

  1.  You need to have **multiple** business model (not business plan) that you can convince to **multiple** VC (as per their need) 🙂
  2.  Some indian vcs are  believing Ad is best model, some are almost against Ad ! [so before you meet and if you are dot com startup ensure what they like :)]
  3.  Indian VC normally don’t fund without business model except you have past history of very successful exit.
  4.  Even you have b-model, next question you will be asked for team.
  5.  Even you have team, they will be asked for pilot version, free users test etc.
  6.  Even you have alpha version, they will ask you for paid customer and revenue.
  7.  When you have revenue, either they will think you are not scalable or will ask copy-cat and competition.
  8.  Normally Indian VCs are not investing in very early or early stage startups, but they put money for growth and expansion. [This may be turned into one more  blog     post soon so keep watching this space]
  9.  I don’t visited valley, but few good friends told, in valley one can get funding without Business model, and VCs are more focused on Team+Scale+Product/Idea even before its working. [Repeat : I frankly don’t know this point personally but heard from multiple trusted friends !]
  10.  VC/Angel are surely able to know in couple of mail exchange or few minutes talk, Are you really passionate about what you are doing or Are you hungry for money ? they are just smart in this aspect.

Good side is Many times VC are approaching startups, and i know this is also the case with few startups.
Now the other side and some know-how for Enterpreneurs [use at your own risk ! But i have seen many startup’s founder using this.]

Type 1: Only goal is to raise money:

You don’t have team, you don’t have single  line of code written, You don’t have passion but as you have shoot couple of B-plan and met or have call with few VC and they might have told you above points and just to show them, you may have build the team and half backed product (for VC and not for the customer/End user or even for their own passion).

Type 2.A: Not hungry for money. Passionate about what they do. Enterpreneur approaching VC, with frankly telling they don’t have any B-model as of now, but what they are doing is something really cool.

Here this type of enterpreneur are actually not crazy for funding, what they are crazy is to get honest feedback, questions and suggestions. And they normally get what they want (not funding, because of Point 3 in above !)

Type 2.B : Not hungry for money. Passionate about what they do. VC approaching Enterpreneur.

So if you are startup and recently you might have got call/mail from reputed angel/VC telling you hi, let’s have call/meetup. They ask you to shoot b-plan and team summary etc [even most of the stuff they already knowing but kind of ice-breaking or want to know more etc?] and there are typical answers like we don’t have B-plan yet 🙂  [B-plan and not B-model !]

Then they might scale down to ok, we can work out on b-plan, but send us b-model. Normally for startups who attract VC are in a stage who may be knowing this answer. There are very few startups in Type 2.B, but either they are not looking for funding, or they are afraid to share details or the smart folks, who wanted to get ideas/suggestion from VC and if good luck, may turned into funding.

Without any conclusion, keeping this open ended and  You are feel free to comment/put your experience or other related things.

Note :
some points (very few) are  apply to and most of the points are derived from other startups founders. I have not taken any formal interview of any founders but hanging out at their office, very small meetup etc and sometimes helping them on certain aspects or sometime were in passive call when founders are dating VC,  i made these observations.

I am thinking to write, what startups are doing after funding ? how they use the funds and related topic, so if you are funded startup, tip us. If you don’t want your identity be publish, i will respect.


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Bye Bye Polaris, Welcome to Mobile 4 Mumbai full time.



It was tough call, tough not to leave the job, but Tough to leave Polaris  !!! Working for more than 5 years in one company (and more to company its like working with family and friends !). However  I learn one thing “Live your Dream”.  And finally its time to do that,   to work on my idea, building the stuffs from scratch and impacting millions of people’s daily life.

At one side, i am feeling sad, as its 5 yr+ time, kind of comfort zone in polaris, many friends, daily hangout, smooth life, good steady monthly pay !And when i told my wish to leave polaris to few close friends, they were giving me Gali, You Foolish, Don’t do etc etc.

They are right, I am also right.  But finally with all your wish and good luck, i think its time for me to startup.

While writing this, i am really excited about the progress we have made in Mobile 4 Mumbai‘s new Stealth mode service., Top 4 telcos  in Mumbai are keen to work with us and in advance level talk with them to rolling out our new service in few months time. Frameworks for some really cool location+mobile service has been built-up, with load testing of  10L users, and performance, scalability are good enough.

The point is not about only telcos,  Infact when we launched Mobile 4 Mumbai’s in Last week of 2009,  and within 6 month in June-2010, Big Boys who are having two O in their name (Guess ! Guess !!!) were calling us and keen to work with us, or i work for them. [But i don’t want to leave Polaris for next job !!!] Now i predict it is right time to jump full time !

I am sure many things i have learn @ polaris will be useful, (Oh ! When  yesterday i was hanging out with investors, they told, its not about my Idea, They would love to make investment because of My Execution !!!… I am sure, If not in polaris, i may NOT have learn all of this).
Working in Phonologies (IIT-B incubated small startup) + Polaris + Vaman (now defunct) and working with some great  brain + great friends,  i can not forget, and i will miss you,  i will miss some night out in solving Armor Issues, Night out in making some servers up, Rolling out some new implementations and  Chai + Bhaji and other fun stuffs around office,  + great people @ Polaris.


So yes, finally writing this to say Good Bye and Good luck to all associates and management @ Polaris Software Lab Ltd.  And jumping to Start-up world !!!


Cheers and Have Fun,

Raxit Sheth


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Help,Dont help !!!

Okies…  This is Life,Nind Nahi Aati to bollywood film ki story bana raha hu….. 🙂 🙂 Enjoy with your heart,mind and soul. Decide how can you handle the situation in best way !!!!

There are two friends  A and R.

Case 1 :

A is in some trouble,  R is friend and knowing A is in trouble. R is helping A constantly so that A can be out of his trouble.  A is knowing R is helping him.

Case 2:

At the same time, R is also in some different problem (or atleast A thinks R is in trouble !!!). A is trying to help (without knowledge of R).As problem of R is involved Third Party C, Without knowledge of  R, A is trying to do communicate with C. R and C  is again knowing each other, A is knowing the same.


Good Good, Help Karo, Friend ko batao mat.  If you donate with your left hand, right hand should not know !!!

Now if you are normal human being, you may think A as good character. A is helping. Help karo lekin Batao mat. True Friendship !!!!   But Kahani me Twist hain 🙂 🙂

Even A is helping R, help is not results in any fruitful stuff, even it is likely to make matter more compelx !!!


Note that, intention of A is good, but finally it is making the stuff more complex for R and C.

What do you think ?  As per you  A is helping to R is Good ? (Am not asking good for friendship…but good for situation ?)

Should anyone help to other without informing ?


If you are R : Would you cut all the communication when you come to know A was helping, but things gone wrong for help attempt !

If you are A: What you would have done ?



Sochte Raho… If you don’t understand all this post,  Give extreme Stress to your brain and heart cell.  I am also trying the same to understand what i have written.


Have Fun, Wait for Feb 3.



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happy wala birthday – Thanks to dear janta :)



Thank you all for birthday wish. I can not take your call at midnight 🙂 i was in deep sleep[ and yes, i have not code since last week]. i know many of janta who has tried to wakeup me at 12:00 am, 2:00 am, 3:30 am and then giving First Gali and then wish 🙂 🙂 i know i am not taking about one or two guy/girl, there are most of techy/nerd group who is active only at night, making hack, half sleep and active on irc ! Some of them are techy babes as well :). Hoping me to come  at  some sea shore at mid-night/early morning  and have fun in the group or  have some snacks  etc etc……i am sorry 😦  😛


Anyway thanks a ton, and sorry for frustation for not taking your call at mid-night 🙂 (and also ignoring your calls (reporter janta)  since last couple of days 🙂 it is not like that i just dont want to talk… actually i just want to  get rid of this buggy E51 and old laptop ! [Yes, again screen problem !]  …i will be back in action post friday evening 🙂 so stay chill). I guess  many facebookers have painted many wish on my wall…. but  this is wall (unix command !,  not social media ! 🙂 🙂

Cheers and have fun, Go take party and dont pass bill to me 😉

PS: if you are polaris janta or  does not know me very well,  all the content is irrelavant. there are chances you may lost :),  Tc


raxit sheth


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why i am expecting tooo much ?

Geeta Gyan : dont expect much, easy to tell…tough to realize.


sometimes you are expecting, other person does not know (even one should know !  atelease i think so !) but since my past experience by all logical means, i should not expect much…but still i. Blind trust ? huh, dont know.



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Neend Nahi Aati Kya Kare ??

You might be thinking i wakeup at 6:00 am (while i am writing this !) Your guess is wrong !!

Sometimes, you want to sleep, but you can’t. you are not in tension, infact you are totally tension free ! but you eagerly want to sleep, but you can’t. What to do ?

I dont know…. I am just going out @ LA circle to have tea !

Cheers and have a nice day

*LA is more popularly known as LokhandvalA 🙂

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It happens… Don’t wait move on !

When you called me, i was always there ! Sometimes you called me up and i was in middle of imp. client call, i just cut and was with you to help. Sometimes you are having lazy & confused weekends, but i do have meeting with who is who of industry….i prefer you (than the biggi folks !) and enjoyed butter idli and Tea…. I tried and give preference to you… after my parents and family…

you forgot almost everything, when these folks call you always tell yes, never tell NO…because your  love !

This is the life….

When you are in critical moment, you want advice, when you seek their help (not in terms of money,effort, but in terms of moral advice..because you think your love is smart.they just want to watch movie with the friend, ok…you text them…call me back once you @home…they replied “Ok” …. and forgot !)

But it is just fine for you to forget, and dont care about who is caring you, the  poor stupid guy  (no the lucky one ! atleast now !)

Oh ! I dont know….i will ask to check the blog. I think ! What ?

Nothing !

+ it is not what you understand. 🙂 Have fun (in the pain time !)

Final : Love me or hate me ! have fun…

Raxit Sheth

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