Shout ’em out louder!

(This post was born out of internal discussion that took place in MVP forums. Its jointly written by : Sameer, Ankit, Nandini and Indus)

Bharat Matrimony

Bharat Matrimony (BM) has launched its facial search feature that enables you to upload celebrity (you can also upload your ex-girlfriend’s pics) pictures and BM will find a look-alike. Check it out here

Though the technology is imperfect the idea is so perfect on so many levels:

  1. Viral nature
  2. Engagement of users
  3. Stickiness of the site
  4. Differentiator from other sites
  5. Users having fun, part of so many jokes

It totally rocks and its great to see an Indian company leading its way in innovation. On the other hand its disappointing to see so less buzz created by them in the Startup media.

AdaptiveAds

Glam Snaps Up AdaptiveAds. Mumbai based startup AdaptiveAds was acquired by Glam, a leading ad network based in US. This news was covered very well by Techcrunch and and other leading tech blogs of US about a month back, but again coverage in Indian Startup media left a lot wanted.

Adaptiveads, a mumbai based startup, clearly demonstrated that an Indian startup can target the global market very well and it makes a lot of sense for other Indian Companies to tap into borderless economy. When we can serve millions of western companies by being an outsourcing hub, by developing the core technology for them, why cant we guys put together our collectible brains to bring Indian products to whole world.

Startup Media

The current Startup Media in India consists of the leading startup blogs, some newspaper / magazine columns, couple of dedicated magazines and little bit of TV coverage. The main credit for creating the “Startup Media” goes out to the leading startup blogs, they have been at it for few years now and have done quite a good job of covering the news, sharing good practices, aggregating discussions around startups. They have built a strong and sticky community of readers / contributors around them.

Shout ’em out louder

Though a lot has been done, there is a need to increase and provide regular coverage “towards celebrating / highlighting / sharing the Indian startup ecosystem triumphs”. This post is a request to Startup media to shout louder about the successes. Indian ecosystem is evolving and it definitely requires much needed boosts from media to encourage them. There are quite a few successful Indian startups, may not be to the tune of 10-100 million USD, but still doing pretty good. But, every mention will only encourage and boost the morale of the others to push the bar & succeed!

Some suggestions to the Indian Startup Media:

  • Add regular weekly features that bring out startup success stories, backed by research. Bring out the reasons for the success and help others learn and get inspired. This can also be done with some guest writers contributing.
  • Missed out on covering the news in time? – not a problem – write enough juice and they’ll quote you on their blog!
  • Dig into the development of the startups you have already covered, ask them to keep you updated, monitor their blog feeds for news of successes – followup stories is always a welcome for a reader!
  • A lot can happen over coffee – spend more time with startup founders (new & old), listen to their stories – can make for a good copy!

Communication channels are the most important for development of any eco-system (Even Hitler banked on it) – you have the power to influence and help startups imbibe good practices – make the most of it! This will go a long way to also help dispel India’s image “as only copycats, service-based companies and outsourcing hub”.  It will encourage the ones who are on the edge and are evaluating doing a startup. Current and potential investors will see the successes and increase the financial participation towards Indian startups.

The day is not far when people will be bringing Garam chai and Samosas to your home (riff from people bringing donuts/coffee to Arrington to get covered) . While you make them the stars, they will make you the celebrity!

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How to practice quality in your startup?

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Image via Wikipedia

(This article was written for IT magazine and was published in Feb 2009 issue. Original article can be founder here)

These thoughts about quality crystallized in my mind while I was reading Robert Pirsig‘s “Zen and the Art of Motorcycle Maintenance: An Inquiry into Values”. There was such a rush of thoughts in my head that I had to keep the book away and start writing down my thoughts.

Pirsig offers this definition for Quality:

“Quality is a characteristic of thought and statement that is recognized by a non thinking process. Because definitions are a product of rigid, formal thinking, quality cannot be defined.”

But then below the definition on the blackboard, he wrote,

“But even though Quality cannot be defined, you know what Quality is”

Startups are essentially units of passionate, committed, and somewhat foolish people trying to accomplish things which would normally be considered far out of reach for them. The only way for the startups to make it across to the other side is by ‘practicing superior quality’, quality in all aspects of the startup:

  • Quality of the founding team
  • Quality of the idea
  • Quality of the execution
  • Quality of the product design
  • Quality of everything else being done in the startup…

Now the question really is, if ‘quality’ can not be defined, how does the startup practice it? The short simple answer is that Quality at a startup directly proportional to the:

  • Sense of quality of founder(s)
  • The discipline with which they follow it
  • The amount of pain they are ready to bear to ensure quality is practiced

The ‘sense of quality’ is not something one is born with, its something that comes with ‘care’.

Though the Google founders were not UI experts, they came up with a high quality search page design, because they deeply cared about the users experiences. They cared about keeping it simplistic and natural to how people would want to look for information. As a founder you must first of all ‘care deeply’ about all things that your company is doing. This ‘care’ will turn into the ‘sense of quality’, which will give you the ability to tell good quality from bad.

Evan Williams; the founder of blogger cared so deeply about the users of blogger, that he stayed on with the company as a single employee running servers, teaching himself stuff, writing code, talking to users, fixing bugs even when all other employees moved on, when the company had almost no money. He did not leave, he stayed on continuing to ensure quality experience to the users whom he cared about and prevailed. Blogger became Google’s first acquisition.

Similarly, the guys who designed the first spreadsheet ‘VisiCalc’ spent less time coding but a lot more time thinking to make it easy for people to use, to ‘make it natural’. They knew they were competing with ‘back of the envelope’. They cared about the users, cared about minimizing the number of clicks and steps that a user needs to go through for performing a function. And if that was not the case, they would have designed a product which would have sunk without a trace, like many other ‘low quality’ products.

Once the founders reach a point where they care about everything that matters, the next most important thing is they have to get ‘quality’ people onboard. They have to instill ‘care’ and teach the ‘quality’ to each of these guys.

How can founders/leaders teach quality?

Some of the points to keep in mind would be:

  • Understand that you are also learning the subject which you are teaching, so be open to questioning and changing your existing ideas and beliefs
  • Unless its science or math, never give rules to be followed
  • Provide a broad framework to help the guy get started, but make it clear that these are not rules, its just one representative framework. It can be wrong, can be changed, challenged and improved ( mental model )
  • Use real-life examples and case studies to understand and learn from the examples along with the person your are discussing it with
  • Evolve and further understand the model as you proceed
  • Also establish that learning for everyone is a continuous process, everyone is learning
  • Don’t try to arrive at rules / rigid patterns from past data or information
  • Finally, create adaptable mental models – which can handle randomness

Tim Brady, the first employee of Yahoo after David and Yang was obviously given the quality training by the founders, though he was a business guy and these guys where geeks, they managed to convey their care and sense of quality about various things.

Always remember, there is no single or fixed number of routes. There are as many routes as there are individual startups. So don’t follow rules. Make your own rules. ‘Care’ about every damn thing and ‘ensure highest level of quality’ in every task undertaken, every person hired, every product feature designed, every sales call made. Just be paranoid about quality and not let it go. It’s a tough thing to ask and that’s perhaps why there have been so far and few who have made it through.

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First time entrepreneurs (FTEs) – Building businesses in India

Just read the couple of articles written by Paul Graham : Y Combinator (answers what exactly does YC do?  or  Seedcamp, Techstars, MVP etc ) and Equity (explains why should you give 5-6% equity to a program like YC)

The thoughts expressed got me thinking about how should First Time Entrepreneurs (FTEs) go about building businesses in India. While a lot is in common between the approaches of YC, SC and MVP there are a bunch of things unique to the Indian Ecosystem which FTEs should consider.

Uniqueness of India

First things first, only during the last 10 years India has started seeing bootstrapped or garage startups by talented, educated, experienced and passionate folks who dont have access to a lot of capital but have the skills, will to solve problems and the staying power. The number of successes out of these have been limited and have not been really publicized for folks to get inspired by or learn from.

The VC industry is just about 8-10 years old in India as compared to 50-60 years in US and Europe; among them majority of the funds in India are under 5 years old. VC being a long gestation industry we are a good 5-10 years away from seeing major VC success in India. Most of the firms are focusing on the existing pipeline deals in the market and there are quite of few of these available – companies by serial entrepreneurs, companies started by Executives (CXO, VPs) from large companies, some of FTE companies where the traction is fairly significant, also since PE sector has performed very well and the bigger funds are shifting time and money to PE  deals. Clearly all of the above are the right things to do for the Indian VC firms, since the firms need to perform for their investors. None of this directly supports the FTEs, which is where the gap that needs to be filled in.  We need to create new pipeline of deals that will become successful startups and will feed into the VC pipeline 1-2 years later. That’s the role folks like MVP, iAccelerator, Upstart.in and others are attempting to play.

Another dimension of difference is IT / internet. The penetration of Internet and PCs in India is quite limited (9 computer for every 1000 people, as compared to 700 for every 1000 in USA). On the other hand the awareness and usage of IT in companies, specially SMEs is limited as well. There are a lot of other fundamental needs to be fulfilled in India (remember we are a developing country).

FTEs in India: What to focus on ?

First thing to ensure is to build a cash flow positive business within the initial capital that you have managed to raise (self, friends, family, fools). Keep lowest possible costs and create early revenues. Expenses should ideally be below 50,000 INR and in no circumstances higher than 1,00,000 INR a month.

Dont think of funding as a validation for your venture. Be prepared to wait longer, to build your business to the 50-100 crore revenues in 7-10 years, with VC funding coming after 2-3 years of being in business or no VC funding at all. If this does not appeal – don’t do a startup.

Internet only business models targetting indian market are not going to viable for atleast 2 years ( or more). View internet as a cheap way to build products and get the initial users with zero marketing budgets. From day one build alternate channels : mobile, call center, SMS, kiosks , shops , sales team into your model. Use technology as a enabler to drive costs down and to drive quaity upwards, but do not depend on customers using it directly via internet.

If your idea only lends itself to internet, think about doing it for developed markets like US and Europe.  India still has lower costs and we are very bullish on build here – sell to the developed world model.

So while you take into consideration the universal wisdom of building businesses, paying attention to the uniqueness of India can make an big impact on the outcome of your venture.

POCC and MVP present : Startup Roadies

PuneStartups,

The Pune Open Coffee Club (POCC) in collaboration with Morpheus Venture Partners (MVP) brings a new initiative “Startup Roadies”.

About MVP

MVP runs a business advisory and mentoring program for startups. MVP currently has portfolio of more than 10 companies. Some of the companies are: Instablogs, Commonfloor, Lifemojo, Fachak, Crederity, Deskaway, Sutra.

Sameer Guglani and Nandini Hirianniah are the founding partners @ MVP. Both of them are serial entrepenuers and started their first venture Madhouse Media in 2004. Madhouse was one of the first organized movie rentals players. They successfully exited the venture with the acquisition by Seventymm in July 2007. More Info

About POCC

The Pune OpenCoffee Club is an informal group of startup-minded folks and entrepreneurs in Pune. It has the distinction of being the largest Open Coffee Club in India. The club has  550+ members and meets once a month. There is also an active mailing list where members discuss issues and seek feedback from peer startups.

The Startup Roadies Program

We absolutely love to meet passionate entrepreneurs whose ventures are in idea stage (not started, but want to really start) or 1-12 months into the operation. The interaction will be completely informal. Formal dresses are not a must, we want to see you as your natural self, no need to bring any presentations or any financial projections. Just come have a chat with us. Get a demo if possible, get all members of your founding team. Just ensure that you arrive on time as per the allocated slot 😉

The goal of the exercise is to together explore solutions to some of the “tough business problems” you are dealing with. We could do that by offering advice and potential solutions based on our experience. We would also love to introduce you to relevant folks in our network who can add value – potential partners, experienced people in similar domain, potential investors etc.

At our end we are just excited to get an opportunity to meet you and learn from your experience and ideas. Each session will be conducted in the below mentioned structure

Where are we? (Get on the same page, understand the current status of the venture / idea)
  • Team introduction
  • Understanding your idea, market size, the problem your solving, how is your product/service different that current available solutions
  • Figure out the current status of the venture – in development, alpha, beta, launched
  • How much money is available to the team
Where do we want to go? (what are we looking to accomplish in the coming future)
  • Discuss, debate and get clarity on the goals & milestones for
    • Short term: 3 months
    • Medium term: 1 year
    • Long term: 3-5 years
How do we get there? (the most critical part where we together come up with the clear and measurable steps which will be taken to achieve the goals/milestones)
  • Given the current status and various goals, what is the best strategy to get there
  • How to proceed with execution
  • Best way to raise funding
  • Who are the folks to partner with
  • Make a list of action items out of the interaction

Details:

  • Date: Saturday, 21 Feb 08
  • Venue: SICSR, Model Colony, Pune (Awaiting confirmation on the room number)
  • Time: 10am to 7pm (Each startup gets a separate time slot)
  • How to participate: Send an e-mail to nandini AT morpheusventure DOT com with a short (less than 300 words) intro of your startup. Please mention your preferred time slot.

Limited slots. Book now!

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CNBC-TV18-Enteprise INC: Story on capital raising

Here is an opportunity to be in on CNBC-TV18. My friend Isha Dalal at CNBC-TV18 is looking to talk to entrepreneurs who have gone through the experience of fund-raising for their startups and are open to talk about it. You may or may not have succeeded in raising money at the end of the efforts.

Here is the note from Isha:

I am working on a story on capital raising for entrepreneurs for our show “Enterprise INC”
What I’m essentially trying to bring out is whether entrepreneurs can effectively raise funds in this tough economic environment, We’ve spoken to investors (ranging from angel to PE) and to a company that HAS managed to raise funds recently to find out how companies can work around the inevitable slowdown to continue funding and building great businesses. What can companies do right? What could pitfalls be? Have the processes, terms and conditions of raising money altered drastically?

We’ve been looking for a company who’s in the process of trying to raise funds, that would be willing to talk to us about the capital raising process: what are the issues faced?

Do let me know if you might have any suggestions for who’d be willing to speak to us– all confidential details of course, WILL be avoided!

If you want to take it up or find out more. Please drop a mail to : Isha DOT Dalal AT network18online DOT com.

Run lola run!

Few days ago I stumbled onto this presentation by Mike Cassidy on “Speed as a primary business strategy”.  I guess all entrepreneurs do know this somewhere inside. But the presentation captures this message in a brilliant manner. Enjoy it! Also check out the mp3 here pieced together by venture hacks.

The Process

Ankit shared this excellent post by Seth Godin. Seth makes a very subtle but extremely powerful point about “The Process”.

  • of understanding people
  • of getting things done
  • of knowing that “leaders are servants”, the more people you lead the more you are serving
  • of understanding that “no idea is so good that it can not be improved upon”
  • of practicing humility and understanding that “humility disarms”
  • of looking at fundamentals while solving problems
  • of breaking a complex problem into simpler, smaller pieces
  • of not second guessing everyone who works with you
  • of making small checking list of things and crossing them one by one

(These are points that came to my mind about “The Process”)

We dont need no Education. Just give us the money.

Excellent post from Dave – HATS OFF.

Dave has done BIG FAVOR to the new / first time entrepreneurs by speaking naked truth. Many of them are doing a great job but at the same time they really need to be shaken up.

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Here is some of what I see / hear / encounter in the Indian Startup scene and some unwanted TIPS:

– Just give me money and I will take care of every thing else (TIP: guys come to back to reality, it takes a lot to build a business. You gotta build something really significant with out external money and prove yourself, before expecting someone else to write a check)

– I have been working hard and smart for 6 FULL MONTHS, how come customers and VCs are not falling at my feet (TIP: be prepared to rot for another 12-18 months, before people really start noticing you)

– I am doing every thing right but these damn customers , bloggers are not getting it, someone should throw water at them.  (TIP – look inside, review your strategy and execution)

– I have talked to 5 VCs but they dont seem to get my product because they are fools / have vested interests / are incompetent etc. I am sure the next one I talk to will have better sense and will write be a check. Please dont tell me that I need to fix / improve anything on my end (TIP: No comments)

– I got funding, therefore now I am successful. I can spend as much as I want and have all my management stay in 5 Stars and travel Business and blah blah

– I have been running this business for 2-3 years, about time some body comes along to buy my business or give me 5 Million dollar funding (TIP: hey guys, value of your business is not a function of how long you have been runnding. Value comes from : market share, customers, revenues, traction, branding etc etc)

I dont mean to disrespect entrepreneurs, infact those are the creatures I respect the most. But some reality check will surely improve things, would love to hear from you…

Influence: The only thing that matters

(Live from Prithvi cafe – Mumbai, written a few days back)

Concept
———-
– Every one has a circle of influence
– Every customers who loves your product/service will influence others around him in a positive manner
– Every customer who hates you will spread a negative influence
– Naturally some people will have larger circle of influence and  some smaller
–  Similarly some customers have a strong force of influence some not so strong

Exercise
———–
– P = sum of all the ‘positive’ circles
– N = sum of all the  ‘negative’ circles
– Resulting circle, R = (P – N)

Questions
———-
– Is the resulting circle posetive?
– Is it large enough ?
– Is it growing?

End of the day
————–
– Highest  priority for  you should be to continously work on  increasing   these individual posetive circles (P) and eleminating / reducing negative circles (N)
– Size of the resulting circle (R) and its growth rate is the only thing that matters

So what does you equation look like…

Launching “Start-up Evenings”

The MVP gang is launching “Start-up Evenings” with the support of a few firms who are involved with start-ups and a lot of friends in the community.

The First edition of Start-up Evenings will take place on 20 Jan-09, Tuesday in Mumbai.

Concept

The idea behind “Start-up Evenings” is to facilitate “close interaction” between founders of young companies and experienced folks, allowing the founders to learn from the champions (the tricks and hiccups of the trade), and to network.

The event will be monthly, with one edition each in Mumbai, Delhi and Bangalore.

We did some sessions as part of our founders meet and saw that it was extremely useful for the founders and hence by popular demand decided to conduct regular “Start-up Evenings“.

Format

  • Event will be attended by 10-15 founders of start-ups from the MVP portfolio, partners portfolios and other founders
  • There will be one guest of the evening who will share his / her experiences and interact with the start-ups in an informal manner
  • The guest will typically be an experienced entrepreneur / investor / a person from the start-up ecosystem
  • There is no fee for attending but participation will be only by invitation
  • No more than 15 participants will be allowed to keep the focus of the event
  • Typical timings: 0700 pm – 0900 pm

This is a non-profit initiative and we would love to hear from you if you would like to collaborate on it. There is no requirement of any sponsorship for these events, since we are going to keep them quite bootstrapped. Some of things which can be help would be:

  • A conference room / venue at your office for these events once a month (Mumbai, Delhi, Bangalore)
  • Arranging / suggesting speakers
  • Spreading the word amongst start-up founders
  • Anything else

Feel free to share your thoughts / feedback on the initiative. If you are interested in helping / contributing in any way, write to nandini AT morpheusventure DOT com