Tag Archives: indian startup

Note to pluggd.in and Medianama !

I love pluggd.in and Medianama both, since almost they started !

The only thing i hate about both is they are very much and only india specific !!!  And hence there are two limitation

1. they only cover India specific news,review,start-up updates etc.
2. In turn, which will attract mostly Indian audience, and product/start-up/news covered on those site is consumed only by Indian readers !

I can surely **predict** both are having capacity to go beyond India but I don’t know why ?

Another interesting part, when I talked to couple of Startups, they told, why should they got featured in Pluggd.in or Medianama, instead they loved to be featured on TNW and PO (penn olson), interestingly both blogs have started india specific news recently, and if Indian Startup got featured on TNW or PO, they are having much wider audience then pluggd.in or medianama !

Unwanted Advice : Go beyond India. [I am not telling don’t cover Indian start-up, I am not telling to cut India specific news, I am telling to expand !]
It will help, start-up, and interestingly Indian Startups as well. It is win-win for everyone, and I don’t see any reason to limit yourself.

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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 m4mum.com 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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