Funding is neither necessary nor sufficient for creating a great …

Funding is neither necessary nor sufficient for creating a great startup!,

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  1. 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.

    1. 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

  2. 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.

  3. 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….

  4. 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.

  5. 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 “???

  6. 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”.

    1. 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”.

  7. 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…

  8. 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

    1. 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. 

    2. 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!

  9. 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.

  10. 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

  11. 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.

  12. 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.

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