Boostrapping Wmr Nov 13th India
24
Click here to load reader
-
Upload
sramana-mitra -
Category
Business
-
view
2.221 -
download
0
Transcript of Boostrapping Wmr Nov 13th India
Sramana Mitra
Entrepreneurship Development In India
Kolkata, 1970Masters in EECS from MITReturned to India in 1995 to start DAIS
Indian IT industry was all about body-shopping thenNot my interest
Started Intarka in 1997Raised VC in 1998
Started Uuma in 1999Consulting since 2001
Over 80 clients including SAP, Webex, BestBuy, CadenceWriting since 2005
Where I Come From
On the brink of great entrepreneurial development
Media needs to focus on entrepreneurship, not only Bollywood and Cricket
Entrepreneurial movement still in pocketsNeeds to broaden, infiltrate homesUnder 30 population more keenThey need role models and
encouragementThey need education, mentoring
Where India Is Today
All about accessible role models.And their secrets and strategies of success.
Capturing the tribal knowledge of Silicon Valley.A scalable mentoring device.
Entrepreneur Journeys
Sridhar Vembu, ZohoHarish Hande, SELCO
(Both in EJ1)
My Favorite Role Models
In Bookstores, published by Hachette, India Entrepreneur Journeys (Volume One) Bootstrapping, Doing More For Less (EJ2)
Also, free online strategy roundtables for entrepreneurs Next: Dec 10, 2009 http://sramanamitra.com/entrepreneurship-strategy-
roundtables
Blog: Sramana Mitra On StrategyForbes Column: Zero In
My efforts
VC Funding is not the end game
India Needs To Avoid A Mistake
Why?
Small portion of business ideas qualify for VCs
TAM = Total Available MarketVC = Large TAM
VCs only fund very large market opportunities
Worth Building, thoughEspecially if you own 100%
Many more $1m, $5m, $10m, $20m ideas than $500m ones
90% owner of $5m company sold for $25m
Which entrepreneur makes more $$$?
5% owner of $25m company sold for $100m
$22.5m
$5m
Weapon Of Mass ReconstructionDoing More For Less
Hence, Bootstrapping
Yes you can.
Myth: You cannot build a large company by
bootstrapping
Finisar: Bootstrapping To Billions [EJ1] - $5b market cap in 2001
RightNow: The Montana Mogul [EJ2] - $500m market cap in 2009
SuccessFactors: Silicon Lazarus [EJ2] - $875m market cap in 2009
Stories
On the contrary.Bootstrap the early stage.
Raise money later. Preserve more equity.
Myth: Bootstrapping & Venture Capital are mutually exclusive
Don’t build anything until you have validated your concept.
Myth: Need to build a prototype to start selling.
Avoid very large funds.Bootstrap first.
Mentor Capital, not Venture Capital
Also important for the media to understand and explain
Other Issues
Difficult shift in mindset
Outsourcing to Products
We have very little expertise in India
Positioning
In Bookstores, published by Hachette, India Entrepreneur Journeys (Volume One) Bootstrapping, Doing More For Less (EJ2)
Coming in 2010: Vision India 2020 Positioning, How To Test, Validate, And Bring Your Idea To
Market (EJ3) Innovation, Need Of The Hour (EJ4)
Also, free online strategy roundtables for entrepreneurs Next: Dec 10, 2009 http://sramanamitra.com/entrepreneurship-strategy-roundtables
Blog: Sramana Mitra On Strategy Forbes Column: Zero In
My contribution
Open Discussion
How can we collaborate?
Thanks to our hosts
Cisco is a leader in the Telepresence immersive video conferencing technology market.
Tata Communications was the first service provider to open public Cisco TelePresence Suites in the world, with the first rooms in
India launched in July 2008. Tata continues to lead this space with a commitment to add an additional 25 rooms by mid 2010, to the
existing 10 rooms on their global network.
