Tag Archives: VC

Entrepreneurial Visions—A Startup Event by Ideaspring Capital, 8 Jan

Persistent Systems, and Ideaspring Capital invite Innovators and Entrepreneurs in the Technology space for a startup event on how best to ideate, innovate and implement.

AGENDA

  • 4:00PM | Registration
  • 4:30PM | Welcome Address by Dr. Anand Deshpande
  • 4:35PM | Why India is prime for product innovation (Talk + Q&A) by Sharad Sharma
  • 5:05PM | Ideaspring thesis by Naganand Doraswamy
  • 5:20PM | Panel discussion with Pravin Bhagwat, Arihant Patni, Vinay Nathan hosted by Dr. Anand Deshpande
  • 5:50PM | Q&A and closing comments by Arihant Patni, MD, Ideaspring Capital
  • 6:00PM | Refreshments

Speakers/Panelists include:

  • Dr. Anand Deshpande, Chairman and Managing Director, Persistent Systems
  • Sharad Sharma, Co-founder and Governing Council, Member of iSPIRT
  • Arihant Patni, MD, Ideaspring Capital
  • Naganand Doraswamy, Serial Entrepreneur turned Investor
  • Pravin Bhagwat, Founder and CTO of MojoNetworks
  • Vinay Nathan, Co-founder and CEO of Altizon Systems

This event is free and open for all to attend. Register here.

Pune’s Swipe Telecom gets further funding from Kalaari Capital (30cr)

(Sorry, this news is being posted here a little late; I was on vacation when this news broke, and decided that a late update is better than no update at all.)

Pune based Swipe Telecom, which has been selling low-priced tablets in the Indian market for the last 2 years has received Rs. 30 crore in funding from Kalaari Capital, [reports the Economic Times][blink].

Here is some interesting information about Swipe from the article:

Swipe offers around 23 types of tablets which include those with 3D resolution as well as a range aimed at children. While its current products are on Google’s Android platform, it will soon introduce tablets on the Microsoft Windows platform.

and, some information about the founder:

“We want to be a leader in one category ,” said Shripal Gandhi, cofounder & CEO of Swipe who has 11 patents in nanotechnology. He has earlier worked at Unidym, where he worked on touch screen technologies for clients like Samsung and Apple. It is this focus that is proving attractive to investors.

And information about their revenues:

The fast growing company, founded by Gandhi and Aman Gupta two years ago, has seen a three-fold increase in revenue which touched Rs 100 crore in fiscal 2014, with an estimate to touch Rs 300 crore next year. Swipe Telecom, which says it can develop and roll out products in five weeks, is able to customise its tablets for enterprises and plans to make pre-loaded tablets for education institutes and banks.

Read the full article

Pune-based Sci/Math Learning Platform @FunctionSpace get funding from @NexusVP

(Sorry, this news is being posted here a little late; I was on vacation when this news broke, and decided that a late update is better than no update at all.)

Pune-based Function Space, an online “social” platform for learning science and maths has recently raised seed funding from Nexus Venture Partners.

Function Space is trying to make STEM (Science, Technology, Engineering, and Mathematics) education fun and engaging, something that is seriously been missing from our education system

Function Space, already offers a strong community consisting of users from over 190 countries, including students, professors and researchers from MIT, Stanford, University of California, Berkeley and Los Angeles campuses, Indian Institute of Technology campuses, Indian Institute of Science and other prestigious institutions.

The funding will be used for expansion: of their content, their tools, and their customer reach.

Function Space was founded in 2013 by Adit Gupta, Sakshi Majmudar and Sumit Maniyar.

Note, this makes NexusVP the most Pune-friendly venture capital firm with 9 investments in Pune.

Read the full article

Interview with @NexusVP, the most active tech Venture Capitalists in Pune

Venture Capital firm Nexus VP, with 8 investments in Pune, is not only the VC firm with the largest presence in Pune, but conversely, they also seem to love Pune, with more investments here than any other city, including everyone else’s darling Bangalore.

Recently, Sandeep Singhal wrote this in a tweet:

Pune has the most product oriented culture. With 8 investments plan to spend more time there.

and soon after that, Nexus held an event in Pune showcasing 3 of their portfolio companies. With this much invested in Pune, and more activities planned, we decided to talk to Jishnu Bhattacharjee of Nexus to find out more about their Pune love affair.

How many companies have you invested in Pune? Can you name them?

Currently 8 of our companies have offices in Pune : Pubmatic, Druva, Sedemac, Helpshift, Uniken, and 3 others that will be announced in time

What attracts you to Pune? What would you say about the Pune start-up ecosystem, in comparison with other cities?

We consider Pune as a key technology hub in India. We find very high quality start-ups in Pune. They are either starting up in Pune or are setting up engineering offices here very early on in their life cycle to tap onto the superlative engineering talent in the city.

What are you plans for 2014-15?

We plan to continue / increase our focus in Pune, hope to interact and partner with many more exceptional entrepreneurs in Pune in coming years.

What technologies do you see as most exciting for the next few years?

We expect that exciting startup opportunities will be unearthed at the intersection of different technology trends like mobility, cloud and big data, applied to all facets of life spanning but not limited to health and wellness, education, enterprise IT, retail, home automation, industrial automation, agriculture, etc. That said, rather than being thesis driven, we are fundementally bottoms up investors looking to partner with passionate entrepreneurs who create category defining companies.

What would your top-3 recommendations (advice) be for an entrepreneur?

  • Instill the sales DNA in yourself. No matter what your background might be, as an entrepreneur you would always need to sell : to your customers, to your prospective hires and employees, to your investors.
  • Always look to hire better than yourselves.
  • Less is more. It’s much more important to figure out what features your product should Not have than what features it should have. Start-up that thrives does One thing right and better than anyone else, that addresses one key pain-point felt by a big enough target set of users / customers.

According to you, what is the #1 mistake that most first-time tech startup founders make?

Point #3 above. Tech start up founders have the propensity to start building out the technology / product, without really understanding that key One thing that is needed in their target market, that they have a competitive advantage one. Achieving product – market fit is quite different than developing the technology. Key is focus and saying ‘no’ to features much more than saying ‘yes’.

Founders of @firstcryindia @dhingana @sokrati to talk at @SAIFPartners Ignition Event

SAIF Ignition is a startup event by Venture Capital firm Saif Partners. The event is divided into two sessions:

Session 1 will have some startups sharing their learnings on go-to-market strategies on sales and customer acquisition. In addition, we will have Supam Maheshwari from FirstCry, Swapnil Shinde from Dhingana and Ashish Mehta from Sokrati share their learnings on how they scaled their ventures.

Session 2 – Startups pitch to the SAIF Team: Startups who would like to pitch to the SAIF team may send their pitches to saifignition@saifpartners.com.

Saif will shortlist 7-8 pitches. Please try to answer the following questions in your pitch

  • Market you are going after and the problem/pain point that exists currently
  • Explain the product and how it is solving the problem
  • Team behind the startup
  • Initial traction, if any
  • Funding requirement

You can look at a sample presentation here for reference.

Following is the detailed itinerary of the event

  • 9 – 9.30 AM – Registration
  • 9.30 – 10 AM – Networking over coffee
  • 10 – 11 AM – Panel discussion with Ashish Mehta (CEO & Co-founder, Sokrati), Supam Maheshwari (CEO & Co-founder, FirstCry) and Swapnil Shinde (Co-founder, Dhingana)
  • 11 – 1.30 PM – Problem solving session with startups (3-4 startups will present on their go-to market strategy)
  • 1.30 – 2.15 PM – Lunch
  • 2.30 – 5 PM – Pitch session with SAIF Team

In case of any queries or clarifications, please feel free to reach out to rohit@saifpartners.com or call Rohit at +91.98111.09541.

Fees and Registration

This event is free and open for anybody to attend. Please register here

Event Report: What markets to do a startup in India – by @dkhare (Lightspeed Ventures)

(This is essentially a live-blog of Dev Khare’s talk on the Fund Raising Environment in India at the Pune Open Coffee Club. This is essentially a list of bullet points and notes jotted down during the talk, so please excuse the lack of organization and coherence (the fault is mine, not Dev’s). The article is also just a subset of what was talked about but is being published because something is better than nothing.)

If you’re pitching to a VC, better pitch to someone who is already interested in the area that you are doing your startup in. If you have to convince them of the potential of an area, it is an uphill battle, and they will not be particularly useful to you. Also, areas that VCs are interested in tend to be areas where there is a lot of potential money to be made.

With that in mind here are the areas Lightspeed is interested in – and by definition, this are areas that Dev thinks have a lot of potential. So start-ups should go after these areas. Interesting markets and investment themes (The names in parentheses represent companies Lightspeed has invested in):

  • Internet has about 120-150 million internet users. Here, the important theme is networks and marketplaces (Indian Energy Exchange, Fashionara, Limeroad)
  • Mobile has 900 million users, and here direct to consumer business models are of interest (askLaila, and Pune-based Dhingana)
  • Education, with 350 million k12 eligible students, in which education technology platforms are interesting (tutorVista, acquired by Pearson)
  • Financial services, which has 250 million un-banked population, where speciality lending and payments/loyalty are interesting areas (ItzCash)
  • and finally Consumer, with a 150 million middle class in India, and the interesting areas are emerging consumer brands and consumer services (OneAssist).

Mobile is a big and very interesting area. In mobile, there are about 30 million smartphones in India and it could go to 100 million by end of next year. That is a large enough population to build some great companies. The investment horizon of Lightspeed is 5 to 7 years, and if you think that far ahead, there could be 500 million smartphone users in India. Companies serving them have a huge potential. One problem is that it is very difficult to make money in the mobile space, except if you are the service provider. But the money service providers are making from VAS is going down, and that is a business that is dying. So they have to start working with app developers. Vodafone has already started sharing 70% revenues with developers, Idea will do that soon, and others will follow. But remember, they are taking 30% just to allow you to be on their platform – they will not do your marketing. So you still need to do the marketing yourself.

In mobile, various companies have tried to do Indian games (Ramayana games), and that has not worked out. General/betting games like bingo/rummy/poker are doing OK. But this is probably not a big space.

In the mobile enterprise space, there are various problems, including the fact that people bring their own devices, and you have to integrate with various backends. So some horizontal solutions (like email) have gotten traction, but nobody really made much money, because of the competition. So this area is limited – it is more suitable for ISVs and service providers rather than product companies. And one thing you don’t want to do is build a mobile app development framework/platform. 50+ such companies have been funded but none of them are going to make it.

Education is a big and interesting market, where there are lots of pain points, but the biggest challenge is that you cannot sell technology without having to go through schools and colleges and their administrators and trustees and that is a very long and painful road. So it is a big market, but a challenging one.

Question: Why don’t Indian VCs take risk?

Answer: The problem is that there are lots of challenges in the market in India. There are lots of companies who are funded at the seed level who are not going to make it to Series A. And a typical Indian company takes maybe 15 years to give returns, and a VC company cannot really afford to have a number of such investments, since they have a 5-7 year outlook.

Question: There are 7-8 accelerators/incubators in India. What value do they add?

Answer: One of the problems in India is the lack of mentorship in the startup space. There are not too many people who have succeeded and are accessible. (Lots of companies have create a brand (e.g. Zomato, OlaCabs etc) but are still 10 years away from really making it big.) So, all the good accelerators/incubators in India are really run by one person who succeeded and is now trying to give back to the community. And the most important value that the incubator adds is mentorship from that one person. So, if you engage with an incubator, you need to ensure that you do get mentorship from that person. Another thing they do is some branding/marketing in the form of demo days, and just the stamp of approval of being a graduate of that incubator.

Scaling challenges in India: market friction, series of small markets, lack of trust, scarcity of mentors, scarcity of strategic talent, and constricted capital. This ensures that it will take you much longer to grow your company than you think (and than what would be needed in the US).

So how do you grow? You need to figure out your strategy: are you going after India only, or are you going to start from the Indian market and then go to the US market, or some other adjacent market. Another problem is that there are many markets that are really small in India, and there is no point in going after that market (at least for a VC backed company).

Lack of trust is a big problem in India. In general, everybody from banks to entrepreneurs themselves try to protect themselves from fraud that is going to be committed by 1% of the people, and are hence making life hard for the remaining 99%. There are not many people here who are able to think that they are OK with losing money on that 1% but that will be more than offset by the money they make from the remaining people. Everything has to be pre-paid which is another thing that slows down growth. (One solution to the trust problem is to build a brand – and have radio/TV advertisements. See below for more on this.)

Enterprise selling or SMB selling in India is tough. Market sizes are small. Most enterprises in India do not value packaged products, and are unwilling to pay. Even when they’ve agreed to pay, getting them to actually pay is difficult. The sales cycles are very long, and the markets are all very fragmented. Small business lead-generation, subscription (prepaid) companies are doing OK – where it looks like it is a consumer company (like Naukri, Zomato), but is really making money from the small businesses.

It is possible for companies in India to go after enterprises in US. If you’re going to do this, go after a market in the US that is mature, self-service oriented, and SaaS. An example is ZenDesk. You need to build a very easy self-service product, with a very easy on-ramp, it should be easy to pay and easy to use. Druva started off that way. There are 10 other good companies in India doing this. (Note: self-service for the Indian market does not work. It has to be feet-on-the-street, and that will only scale after 10/15 years, and it will still be a mid-sized company.)

Question: Which city should I be in to do a startup?

Answer: If you’re doing a tech company, you should be in Bangalore or Delhi. Pune is OK – investors have started showing an interest, and Bombay is close enough. Places like Chennai and Hyderabad also have hopes. But if you’re anywhere outside (e.g. Lucknow), you need to move.

Question: What are your thoughts on education as a space?

Answer: If you’re in the education space, you need to be in the curriculum, not as something supplemental. Also, it is very difficult to sell to parents directly – you have to sell via the schools. Remember, selling directly to the consumer in this space is very difficult unless you have a brand and strong marketing. Another point, if you’re selling to schools, your product does not really have to be that good – you don’t have to be good at student outcomes, you have to be good at selling to schools. So invest in a sales team, and not so much in the product. Distance education / e-learning is an interesting area. Also online assessments are an interesting area – like doing tests for Infosys for recruitment, or exams for schools.

Question: How come there isn’t much investment in India for clean energy?

Answer: One of the issues is that the VC community wants to invest in areas that have high margins and low capital expenditure. They like to do a few million dollars to do an experiment, validate the market and then scale the business. By contrast, energy is an area with lots of capital investment and long gestation periods. It takes 5 to 7 years for the science to work, then the real product starts, and then there are other challenges. So this is a problem everywhere in the world. In the US there was a clean energy bubble a few years back but that has burst, and those VCs have fled. And in India, the situation is worse – whom do you sell the energy to, in India? The government, which is a problem.

Question: How do you get advertisers, especially from the US?

Answer: First, you need to have scale before advertisers are interested. If you have less than 10 million monthly unique, don’t even bother – it’s a waste of time. Just focus on scaling your traffic. Once you have reached those numbers, there are various options open to you, including outsourcing the sales of your ad inventory to third parties.

No consumer company in India can really succeed without a physical infrastructure of some sort. And that is painful, difficult and slow. But once you’re able to do that, then you can really leverage that well, and it becomes a barrier to entry. Another issue in India is that a consumer company really needs to build a brand (because of the trust issue mentioned earlier). Hence, it is a good idea for a consumer company to start spending on radio/TV ads early. But remember, do not try to scale before you have a microcosm of your business working in a profitable, sustainable way in a small way. i.e. get something working well in Pune, and then scale to 20 cities.

Question: Should startups go after existing markets, or create new markets

In India, the only real way to grow a company is to grow your category. You cannot really simply survive on steal a market away from others – you have to grow the market. And for this, you need to evangelize your market – use the ecosystem to do this. And this takes time – so you need to raise a lot capital and then go big.

Question: What are some areas in which entrepreneurs should not do startups

These are some areas in which entrepreneurs keep trying to start companies, inspite of the fact that there is no real hope for anybody in that area: Development tools (framework for mobile app development, library/framework for easy software development), e-commerce and daily deals (this area is overfunded), unified communications.

Question: Where to get seed investment from

List of active seed investment groups in India: Blume Ventures, Harvard Angels, India Internet Fund, India Quotient, Indian Angel Network, Jungle Ventures, Kae Capital, Morpheus, Mumbai Angels, Qualcomm Ventures, Seed Fund, Venture Nursery, Yournest.

Building world-class technology companies – Helion VC – 24 April

Helion VC, TiE Pune, POCC, and YourStory.in have organized a panel discussion on “Building world-class technology companies” on 24th April, from 5pm-8pm at Le Meridien Pune. A panel discussion on Scaling Technology Companies will have these panelists:

  • Sanjeev Aggarwal, Co-Founder Helion and Daksh
  • Nitin Kulkarni, COO, Persistent
  • Sanjay Katkar, Co-founder & CTO, Quick Heal
  • Rajeev Goel, Co-founder & CEO, Pubmatic

Another panel discussion on Raising Venture Capital will have these panelists:

  • Ritesh Banglani, Director Helion
  • Swapnil Shinde, Co-founder and COO, Dhingana
  • Vishal Gupta, Founder and CEO, Seclore

This will be followed by a networking session over cocktail.

About this Event

This event is free open to all. Register here

The event is from 5pm to 8pm on Wednesday 24th April, at Le Meridien.

Fund-raising Environment in India: by Dev Khare, Lightspeed Ventures – 24 April

The Pune Open Coffee Club has organized a talk by Dev Khare of Lightspeed Venture Partners on Wednesday, 24th April where he will talk about the areas of interest for venture investors and the current fund-raising environment in India at the seed, early-stage and growth stages. He will also discuss key challenges that he sees many startups in India facing across multiple verticals and growth strategies to overcome some of the hurdles.

About the Speaker – Dev Khare

Dev Khare is at Lightspeed Venture Partners in New Delhi and invests in Internet, mobile and software companies. He currently serves on the board of Dhingana, a leading Indian music streaming service.

As part of Silicon Valley venture fund Venrock, he has served on the boards of, among others, Slideshare (acquired by LinkedIn), Lavante (enterprise SaaS) and Aha Mobile (acquired by Harman).

Dev co-founded Covigo, a mobile application platform company, which was acquired by Symbol Technologies (now part of Motorola) in 2003. He has also been a product manager at CrossWorlds Software (enterprise integration software) and Aditi Technologies (eCRM).

Dev has an MBA from Harvard Business School and tweets at @dkhare.

About Pune Open Coffee Club

The Pune Open Coffee Club (POCC) was started to encourage Startup Founders and those connected to Startups from Pune to organize real-world informal meetups to chat, network and grow. At this time (April, 2013), POCC has over 9300 members including investors, lawyers, accountants and freelancers who work with startups.

About this Event

This event is free and open to all. Register here

The event is from 5pm to 7pm on Wednesday 24th April, at Conference Hall no. 6, MCCIA, 5th Floor, ICC Trade Towers, SB Road.

“Building Tech Companies out of India” – with VC Naren Gupta co-founder of Nexus – 12 July

Dr. Naren Gupta, co-founder of Nexus Venture Partners, is visiting India and will be in Pune on July 12th. An event for Pune’s entrepreneurs has been arranged where Naren will chat with Abinash Tripathy about “Building Tech Companies out of India”, and this will be followed by networking. The event will be from 2pm to 4:30pm, at the Sumant Moolgaonkar Auditorium, ICC Trade Center, SB Road, on 12th July.

About Naren Gupta

Naren is co-founder of Nexus Venture Partners.

Naren has been an entrepreneur. He co-founded Integrated Systems Inc (ISI), a leading embedded software company, where he served as the President/CEO for fifteen years. He took ISI public and subsequently merged it with Wind River Systems. Naren continued to serve on the board of Wind River till its recent acquisition by Intel. Currently, he serves on the boards of Red Hat and Tibco. He also serves on the Board of Trustees of the California institute of Technology and the Silicon Valley Community Foundation.

Naren has over 20 years of early and early-growth stage investment experience in US and India. Several of his earlier investments have had successful public exits, including Digital Link (IPO), E-Tek Dynamics (IPO), RightNow (IPO), Numerical Technologies (IPO, acquired by Synopsis) and Speedera Networks (acquired by Akamai).

Naren holds a B. Tech. degree and is a recipient of President’s Gold Medal from the Indian Institute of Technology (IIT), Delhi; an MS from the California Institute of Technology and a Ph.D. from Stanford University. Naren has received distinguished alumni awards from Caltech and IIT and was elected a Fellow of the IEEE. He is an active advisor to entrepreneurs worldwide.

Fees and Registration

This event is free and open for anybody to attend. Please register by sending an email to register@nexusvp.com

Meet the Investors – Nexus Venture Partners

Team Nexus Venture Partners Invites you to ‘Coffee with Nexus’ (Networking event for entrepreneurs, investment bankers and start-ups to connect with Nexus team)

On
Friday, November 26, 2010
3 to 5pm

Venue:
Pubmatic India Pvt Ltd, 8th Floor, Amar Apex
Next to Food Bazaar
Baner Road
Pune 411045
Agenda
3 – 3.30pm – Networking over coffee
3.30 – 4.30pm – Nexus Venture Partners: Introduction, investment thesis and opportunities in India
4.30 – 5pm – Q&A/Discussion

RSVP: registration@nexusvp.com

About Nexus Venture Partners

Nexus
Venture Partners (www.nexusvp.com) is India's leading venture capital fund, founded by successful entrepreneurs in India and Silicon Valley. It has $320m under management and an active portfolio of over 20 companies across technology, media, consumer, business services, energy and agribusiness sectors. The Nexus team plays an active role in helping entrepreneurs and management teams build market leading businesses. Some of the companies that Nexus has invested in include Komli (Internet advertisement network), Suminter (Organic farming), Dlight Design (Solar Lighting), DimDim (Open Source Web Conferencing), Mapmyindia (Digital Navigation), Deccan Healthcare (Nutraceuticals), Gluster (Open source storage), WhatsonIndia (TV Guide), Cloud.com (Cloud infrastructure), Pubmatic (Publisher Ad revenue optimization), Prana (Animation services) and Netmagic (Internet Infrastructure).

Investors in Nexus include leading university endowments, foundations and sovereign funds.