I always give example of my friend Rohan, Bellatrix. That guy is building electronic thrusters for Satellitte. Many calls him India’s Elon Musk. He recently raised 4M from Deepika Padukone and team.
But, what people do not know is, this guy built almost everything in college. Had seven patents in college itself. I have seen him handling 10k volt in vacume on open stage. Actual investment of this space startup was some 1000/-.
In India, one does not need a money for building the business. One just has to be smart. If one seeks money for building the business, that will always struggle by the simple rule of economics.
Unfortunately Dr Aniruddha Malpani sir, these words always falls in deaf ears. No matter how much we say and give example, million dollar raise seems to be be a bigger goal than building a profitable business.
Sadly, patience and smart business building are not in anyone’s agenda. People need quick bucks, that’s it.
I completely second your views, funds are needed for growth phase investment, for sure initial phase proving very well be achieved on profitable basis…. I will always suggest investors for funding growth and who can support growth due to their understanding & networking in the sector of the business interests
We have always given more importance to marks than knowledge! Same is the case with Funding and creating a Valuable Startup. Very Rare amount of people are focused towards creating a profitable business than raising a lot of money. To make a Startup profitable one needs to be determined and dedicated, this is harder than pitching and raising funds, only a dedicated Entrepreneur can do this hard work.
Yes sir… For starting something new we may not need funding… Our innovative ideas and urge to do something new which brings quality in our domain is sufficient to start a startup but after a certain period of gestation and for expansion we definitely need support and support may be in the form of funding only….
Yes and No. Of course you need some funds to start. These should be the founders’ funds, not third party investors. Once the product is built and product-market fit is established, you need funding for scaling the business. Now that can either be founders’ more money or revenues from operations or third party investors (who if invest, do not remain third parties anymore). If I had it my way, I would much much prefer funds funded by revenues. But the world always throws surprises at you and you need to adapt.
Simple meaning……..
Dark, light,
Positive, Negative,
Male, Female
Right, Wrong
Good, Bad
God, Demon
Cop, Robber
Both are required for challenging life…. If either one is not present then we will loose spice in life…. Funding depends on project we create and plan with execution.
Always we have to remember that ” LIFE IS NOT A JOURNEY BUT AN ADVENTURE “???
Startups can start- up without investor funding, but taking on investors will be the difference. There is more to building a startup than simply starting up.
Startups don’t need money, they need smart money.
So, let’s not talk about the term funding rather “smart money”.
Hanumant Lal Shukla we know finding individuals who would add value to business as well as capital is backbreaker.
# Finding investors who can do more than writing a check. This no easy job.
# Only working with investors whom startups can get along with.
# Making sure goals & visions are aligned.
#Utilizing strategic partnerships.
These are certain ways to raise “smart money”.
You give 1 rupee to a true leader and he can make millions out of it…
You give millions to a person who tells himself a leader (but not actually), he will be able to give you not even 1 rupee back…
A blog post on this funding subject coming up, hopefully tomorrow itself. It is based on some highly interesting posts made by well-respected tech leaders. Stay tuned.
Depends on what the startup is out to do. If it is doing something really disruptive, it will need funding very early on and for a significant amount of time till its product finds market acceptance and people are willing to pay for it. If it is a me-too product like most startups in India, then it can survive without early funding. It is no coincidence that Amazon, Facebook and Google all had early investments
I have indeed read those stories. Yes, getting funding is not without significant (sometimes considerable) pain. However, most disruptive startups (or even disruption products from existing companies) consume significant resources without generating revenue (or too little revenue) for any individual or group of individuals especially start-up founders to bear. Companies that are profitable early on do not become really big and vice versa.
Banke Agarwal you might want to read more about bootstrapped unicorns!
And Google wasn’t started with the intent of becoming a unicorn, remember? This was a happy outcome of their culture of putting engineers first!
If this is true, you should not be an investor, I guess. I most often find your post against funding. Why you are an angel investor. I must learn the investing secrets from you.
If great mind works together then there is no need need of funding. They can take the company ahead. I have a personal experience of taking the company to the next level.
Dedication,hardwork and ability to never to give up is more important.The entrepreneur should be focused to understand the pain point of the customer,give him the solution for it…Determination is important which can further help in raising funds too
Revenue is necessary and sufficient for creating a great and satisfying startup. Once you are there, your challenge is not as much on finding whether there exist a market for your product, but whether you can deliver as many of your products to as many customers. You might worry about scalability, security, margins, support and hiring top talent.
This is when your company stops being called a startup and becomes an enterprise.
That’s that.
I feel getting huge funds from other people is not necessary whereas you have to have a little amount to create the product you’ll be selling atleast for few units first. A little personal investment is always there either you feel it or ignore it.
Yes I am Agree with you Dr Aniruddha Malpani…foucs on product and market rest will follow
I always give example of my friend Rohan, Bellatrix. That guy is building electronic thrusters for Satellitte. Many calls him India’s Elon Musk. He recently raised 4M from Deepika Padukone and team.
But, what people do not know is, this guy built almost everything in college. Had seven patents in college itself. I have seen him handling 10k volt in vacume on open stage. Actual investment of this space startup was some 1000/-.
In India, one does not need a money for building the business. One just has to be smart. If one seeks money for building the business, that will always struggle by the simple rule of economics.
Unfortunately Dr Aniruddha Malpani sir, these words always falls in deaf ears. No matter how much we say and give example, million dollar raise seems to be be a bigger goal than building a profitable business.
Sadly, patience and smart business building are not in anyone’s agenda. People need quick bucks, that’s it.
I completely second your views, funds are needed for growth phase investment, for sure initial phase proving very well be achieved on profitable basis…. I will always suggest investors for funding growth and who can support growth due to their understanding & networking in the sector of the business interests
That’s because time is a resource you dnt own!!
Absolutely true.
We have always given more importance to marks than knowledge! Same is the case with Funding and creating a Valuable Startup. Very Rare amount of people are focused towards creating a profitable business than raising a lot of money. To make a Startup profitable one needs to be determined and dedicated, this is harder than pitching and raising funds, only a dedicated Entrepreneur can do this hard work.
Yes sir… For starting something new we may not need funding… Our innovative ideas and urge to do something new which brings quality in our domain is sufficient to start a startup but after a certain period of gestation and for expansion we definitely need support and support may be in the form of funding only….
Also it depends on case to case, his or her background, etc.
… but an excuse offered by many people for not starting or surviving the entrepreneur journey.
Funding is necessary only to scale the product and have edge over competition to get market share quickly
unless strategically thought of and worked upon
Very true .. funding is just some lubricant to oil your machinery. Some small percentage of the entire gameplay.
BS
Absolutely Sir Dr Aniruddha Malpani .?
Depending upon situation!
Sometimes even God has to proove his existence.
Same,
Even a startup has Great product, but it needs fund to reach peoples..
Yes and No. Of course you need some funds to start. These should be the founders’ funds, not third party investors. Once the product is built and product-market fit is established, you need funding for scaling the business. Now that can either be founders’ more money or revenues from operations or third party investors (who if invest, do not remain third parties anymore). If I had it my way, I would much much prefer funds funded by revenues. But the world always throws surprises at you and you need to adapt.
Ashutosh Saitwal true
Great startup funding is not necessary.
Persistence is necessary to great startup.
It purely depends upon the perception of “great startup”
Absolutely. Well funded companies also do not relish a high success rate. If I am not incorrect, it is even less than 15%.
I think the most important one is team and idea , money can get workers but to lead workers need a different kind of skill.
Simple meaning……..
Dark, light,
Positive, Negative,
Male, Female
Right, Wrong
Good, Bad
God, Demon
Cop, Robber
Both are required for challenging life…. If either one is not present then we will loose spice in life…. Funding depends on project we create and plan with execution.
Always we have to remember that ” LIFE IS NOT A JOURNEY BUT AN ADVENTURE “???
Reminds me of the necessary and sufficient conditions to prove theorems in school day mathematics.
Market share today is profit tomorrow!!
Startups can start- up without investor funding, but taking on investors will be the difference. There is more to building a startup than simply starting up.
Startups don’t need money, they need smart money.
So, let’s not talk about the term funding rather “smart money”.
Hanumant Lal Shukla we know finding individuals who would add value to business as well as capital is backbreaker.
# Finding investors who can do more than writing a check. This no easy job.
# Only working with investors whom startups can get along with.
# Making sure goals & visions are aligned.
#Utilizing strategic partnerships.
These are certain ways to raise “smart money”.
NISHI SRIVASTAVA thanks
This is exactly the reason I gave while rejecting my last term sheet and walking away.
Bootstrap at all costs
You give 1 rupee to a true leader and he can make millions out of it…
You give millions to a person who tells himself a leader (but not actually), he will be able to give you not even 1 rupee back…
Funding is important equity shares can be negotiated
Koi to Btadonaaa
A blog post on this funding subject coming up, hopefully tomorrow itself. It is based on some highly interesting posts made by well-respected tech leaders. Stay tuned.
Here it is: https://www.linkedin.com/posts/acism_is-your-business-model-built-around-throwing-activity-6602427402096340992-qh0b
Dr Aniruddha Malpani it is not true ,some great idea do not need funding do pilot to test case
Depends on what the startup is out to do. If it is doing something really disruptive, it will need funding very early on and for a significant amount of time till its product finds market acceptance and people are willing to pay for it. If it is a me-too product like most startups in India, then it can survive without early funding. It is no coincidence that Amazon, Facebook and Google all had early investments
I have indeed read those stories. Yes, getting funding is not without significant (sometimes considerable) pain. However, most disruptive startups (or even disruption products from existing companies) consume significant resources without generating revenue (or too little revenue) for any individual or group of individuals especially start-up founders to bear. Companies that are profitable early on do not become really big and vice versa.
Banke Agarwal you might want to read more about bootstrapped unicorns!
And Google wasn’t started with the intent of becoming a unicorn, remember? This was a happy outcome of their culture of putting engineers first!
If this is true, you should not be an investor, I guess. I most often find your post against funding. Why you are an angel investor. I must learn the investing secrets from you.
Only if you can explain a little more. I am genuinely curious.
Amar D. Bootstrapping is a healthier path to sustainable growth
If great mind works together then there is no need need of funding. They can take the company ahead. I have a personal experience of taking the company to the next level.
Dedication,hardwork and ability to never to give up is more important.The entrepreneur should be focused to understand the pain point of the customer,give him the solution for it…Determination is important which can further help in raising funds too
Revenue is necessary and sufficient for creating a great and satisfying startup. Once you are there, your challenge is not as much on finding whether there exist a market for your product, but whether you can deliver as many of your products to as many customers. You might worry about scalability, security, margins, support and hiring top talent.
This is when your company stops being called a startup and becomes an enterprise.
That’s that.
Bhushan Bhagwat yes, that’s when a startup becomes a grown up!
I feel getting huge funds from other people is not necessary whereas you have to have a little amount to create the product you’ll be selling atleast for few units first. A little personal investment is always there either you feel it or ignore it.