How shall I run my processes? How to retain talented people? How to build brand value? How to go ahead with marketing scheme? Yes, these are few questions which whirls in the mind of an entrepreneurs ! But if its an early stage start up then entire thing boils down to.. How to get Funding? It would not be wrong to say that as minerals to plants so is VC funding or angel Investment to startups.  The post lunch session which was an interactive session at Emerge Out had answers to  the million dollar questions for startups.

Sanjay Anandram Founder, Jumpstartup (Jumpstart is not making any investments at this point but Sanjay however is involved personally with lots of startups) , Manu Parpia, Founder & Vice Chairman Geometric Ltd and  Sanjiv Mital, Vice Chairman Bharti Telesoft took up concerns of  SME’s on various funding related subject.

 

Here are the excerpts of the discussion:

Q :What is the interest of Investors in the IT Service Company in today’s market?

Sanjay: Very low and If it is Vanilla IT Services it is even lesser !

Q. When to generate Money from VC’s?

Sanjiv: Business plan is not enough! Before going for funding, do make sure that you have revenue stream and working Business Model.

Q: How to choose a VC?

Sanjay: Go with a VC if you like the person and not just because he is expert in your domain or because he is bringing in money. If the chemistry factor is missing, that might not lead  the decision in the right direction.

Q: What are the critical aspects that an entrepreneur need to take care after funding has been received?

Manu: Make sure to highlight risks/problems clearly and keep reviewing business plan. Be honest and acknowledge error or failures and when it goes wrong raise the issues before anyone else. Keep your investors updated!!!

Q: What makes a VC invest in a venture and what can be expected from a VC?

Sanjiv: At an angel stage, VC invests because they see a wining team and workable model. At more mature stage VCs  invest in a venture who they think is more advanced in idea and execution in terms of scalability and sustainability!!

Q: What time does a VC give up or move out?

Sanjay: I invested in a company and in few months I realized that it will require much more investments than estimated. It was a hard decision but had to walk out. At times the business does not look unviable anymore. VCs continuously scan all the key parameters and take the call at the required time.

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