Location: Ram, The Manohar
Speaker: Ajith Deora, partner in Light Speed Ventures [LSV]
A quite unexpected session on a lazy Saturday afternoon turned out to be quite a learning experience and a rewarding one too! First it started off with the VC view of the whole entrepreneurship scenario and then became more interactive as it went on. By the end we had a draw of lots of the business ideas submitted and yours truly got really lucky and won an 'iPod Shuffle'. Thats totaly woohoo!
My take homes
- On one hand it was thoroughly encouraging to find that LSV does fund people who only have a good business idea; the one that came up regularly in the session was that of Tacit in delhi.
- But what was more fearful was that after a round 1 level funding the VC takes ove about 55% of the company and by the end of all the rounds of funding the funding people (other than the founders) control about 85% of the company. This sort of validates the myth of the VC suckage that is so famous in the startup circles.
- That was also enlightening to know was that the VCs prefer if you can take care of yourselves. They will really be happy if you just take the money, run the company yourself and then later the VCs get their investment back.
- VCs look at startups as just an investment. No matter how passionate you are about your own idea, how well you think it will work; if the VCs arent able to see the business value in fuggedaboutit.
- If you are really the sort of person where you want the major share to stay with you during funding; VCs are prolly not for you.
- The reason for this session was to interact with the young guns to find their views and get in touch with the startup community of Hyderabad. Afterall, India and China are the markets to look out for.
- In your business plan, you must have the following.
- business model
- market, market size & marketability
- sales and marketing team
- clearly identify the roles of everyone
- you must at the very least must have identified positions & persons for your venture: ceo, cfo, cio, sales and marketing team
- It is the pejorative of the founders/entrepreneurs to followup and push the VCs. They as I said, generally prefer if you can just give their multiplied investment back. Dont expect them to run around for you.
- Thought it was a business case contest it turned out to be a lots and yours truly was doubly lucky. I presented an idea of a rupee a day health programme for low/middle-class/rural areas. This was a dream project of moi and my friend tarun gandhi(his passion actually) to provide affordable healtcare to all. Where the government has failed, we hope to make good inroads. Diwakar from IIIT talked about a circle oriented method of dealing with families than based on geneaologuy based family trees. Next was Srikanth who has a realtime solution for decision making. What was enlightening in his talk is the amount of clarity in his idea and the numbers he already has to prove his mechanism.
- And then there was Atul Guptas idea of getting gaming to tv. But my doubts persist on that.
- if i was gamer and there are lot of underground sites to play/download games, why would i need suscription
- 5 years ago a new channel was started which would show the gaming live on tv. i think that sort of thing might work well. [Update : Bringing Online gaming to TV! this my wow-woah! moment] something like a cyber olympics for a small part. I think this would be an idea of making cybergames truly cyber. Why should gamers meet at one place and then play, when they can be at different goegraphical locations and play. That i think would be truly cyber.
- Rajan had a great point to make: the reason why kids go to cybercafes is so that they can escape their parents' eye. Why would i want to risk my freedom by getting subscription based gaming here? However, seems like ATI might have already been working on one such solution as said Dasrath Guhe (GD) MD ATI.