Comments on: We’re Comfortable Writing Small Cheques: Naren Gupta http://startupcentral.in/2008/08/506/ Fri, 10 Feb 2012 08:01:06 +0530 hourly 1 http://wordpress.org/?v=3.3.1 By: Richa http://startupcentral.in/2008/08/506/#comment-245 Richa Thu, 28 Aug 2008 12:08:00 +0000 http://startupcentral.wordpress.com/?p=506#comment-245 Hi, I am Richa from SiliconIndia. I am also an avid blogger for a while now and participating actively in Indian blogosphere. I read your blog posting and found them very interesting and informative. We would love to see a copy of your blogs posted here, whenever you are posting it on blogger.com. Here are some of the benefits of posting your blogs here: We have a strong community of 500,000 Indian professionals Best blogs of 2008 to be published in a book "SiliconIndia bLoG PrinT" Best blog to be printed in SliconIndia & SmartTechie magazines each month Chance to be featured on homepage everyday We appreciate your community initiative here and in helping build a more powerful India! Also, if you have any ideas or want to volunteer to help for SiliconIndia, we would be more than excited to get your help. Pls mail me back at richa@siliconindia.com with your suggestions and feedback. Richa Blog Editor – SiliconIndia Hi,

I am Richa from SiliconIndia. I am also an avid blogger for a while now and participating actively in Indian blogosphere. I read your blog posting and found them very interesting and informative. We would love to see a copy of your blogs posted here, whenever you are posting it on blogger.com. Here are some of the benefits of posting your blogs here:

We have a strong community of 500,000 Indian professionals
Best blogs of 2008 to be published in a book “SiliconIndia bLoG PrinT”
Best blog to be printed in SliconIndia & SmartTechie magazines each month
Chance to be featured on homepage everyday

We appreciate your community initiative here and in helping build a more powerful India! Also, if you have any ideas or want to volunteer to help for SiliconIndia, we would be more than excited to get your help. Pls mail me back at richa@siliconindia.com with your suggestions and feedback.

Richa
Blog Editor – SiliconIndia

]]> By: Sandeep Singhal http://startupcentral.in/2008/08/506/#comment-247 Sandeep Singhal Wed, 27 Aug 2008 18:13:03 +0000 http://startupcentral.wordpress.com/?p=506#comment-247 As Naren mentioned, Nexus seeks out and backs six sigma entrepreneurs, regardless of the stage of the company. Six sigma entrepreneurs bring passion and relevant experience, an ability to adapt and motivate people, and a desire to build something large. In the Indian context, where costs are lower, it is easier to get a concept going on personal capital before bringing it to an angel or institutional investor, and these entrepreneurs often prove to themselves that their businesses will scale before approaching external sources of funds. The reason why seed funding is tougher to obtain is that the amount of work required by the investor in working with the company is higher, but the amount of capital put to work is small and the resulting returns are therefore capped in absolute terms. Although risk is higher, that decision criteria is less material because the amount of capital is lower. Investors like us want to work closely with our portfolio companies but also have limited bandwidth. A strong entrepreneur can focus the time the investor needs to spend to more critical areas, and that is what helps close the deal. So I would recommend that early stage entrepreneurs keep both the need for capital and the need for time in mind - the more you can show strengths in the basics of building your business, and articulate how you are looking to leverage your investor's time beyond just capital, the greater the likelihood of success in getting that cheque. As Naren mentioned, Nexus seeks out and backs six sigma entrepreneurs, regardless of the stage of the company. Six sigma entrepreneurs bring passion and relevant experience, an ability to adapt and motivate people, and a desire to build something large. In the Indian context, where costs are lower, it is easier to get a concept going on personal capital before bringing it to an angel or institutional investor, and these entrepreneurs often prove to themselves that their businesses will scale before approaching external sources of funds.

The reason why seed funding is tougher to obtain is that the amount of work required by the investor in working with the company is higher, but the amount of capital put to work is small and the resulting returns are therefore capped in absolute terms. Although risk is higher, that decision criteria is less material because the amount of capital is lower.

Investors like us want to work closely with our portfolio companies but also have limited bandwidth. A strong entrepreneur can focus the time the investor needs to spend to more critical areas, and that is what helps close the deal.

So I would recommend that early stage entrepreneurs keep both the need for capital and the need for time in mind – the more you can show strengths in the basics of building your business, and articulate how you are looking to leverage your investor’s time beyond just capital, the greater the likelihood of success in getting that cheque.

]]> By: MEDIANAMA | The Week That Was (August 18-22 ‘08) http://startupcentral.in/2008/08/506/#comment-248 MEDIANAMA | The Week That Was (August 18-22 ‘08) Mon, 25 Aug 2008 05:15:09 +0000 http://startupcentral.wordpress.com/?p=506#comment-248 [...] 400 employees in India this year – Nexus India Capital Closes Second Fund At $220 Million | Happy to Write $100,000 Cheques Weekly Tags: Weekly No comments for “The Week That Was (August 18-22 [...] [...] 400 employees in India this year – Nexus India Capital Closes Second Fund At $220 Million | Happy to Write $100,000 Cheques Weekly Tags: Weekly No comments for “The Week That Was (August 18-22 [...]

]]> By: Satsheel http://startupcentral.in/2008/08/506/#comment-244 Satsheel Fri, 22 Aug 2008 21:06:22 +0000 http://startupcentral.wordpress.com/?p=506#comment-244 It's heartening to know that someone, atleast, is talking about $100,000 level!! Vibes from start-ups say that when it comes to 'actually' writing the small cheque, "feedback" changes colours. Even if one agrees that 'seed-funding in India is a happy myth' may be a little harsh, still gradual shift to later stages is a fact. So here is a question - w/o complaints, if one accepts this as a fact, and also preserves optimism that someone may write the small cheque, are there a few clear pointers for making a successful seed-stage pitch? I'm still optimistic. It’s heartening to know that someone, atleast, is talking about $100,000 level!!
Vibes from start-ups say that when it comes to ‘actually’ writing the small cheque, “feedback” changes colours. Even if one agrees that ‘seed-funding in India is a happy myth’ may be a little harsh, still gradual shift to later stages is a fact. So here is a question – w/o complaints, if one accepts this as a fact, and also preserves optimism that someone may write the small cheque, are there a few clear pointers for making a successful seed-stage pitch?
I’m still optimistic.

]]> By: Ranjan http://startupcentral.in/2008/08/506/#comment-246 Ranjan Fri, 22 Aug 2008 17:24:01 +0000 http://startupcentral.wordpress.com/?p=506#comment-246 The Numerical Technology story is very inspiring. The Numerical Technology story is very inspiring.

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