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rediff.com/getahead/…/04entre.htm 1/4
10/6/2010 Advice from an entrepreneur turned V…
What entrepreneurs should keep in mind while meeting a VC
1. To begin with, he should do a lot of homework and find the right VC. He
should find out what the VCs are interested in, what they are passionate about,
etc.
2. Once you do the homework, select a set of VCs. If I were an entrepreneur, I
wouldn't pitch to all of them on day one; I would pitch to two or three of them and
get feedback.
3. Pitching should be more informal. You will know the VC's interests in the first
meeting itself. VCs will put forward some common objections, but you put all
objections in a bucket -- objections about the team, technology, size of the
market place, competition, etc. Once you put them in a bucket, decide whether
you can resolve them. Target 10-12 of the relevant ones before going to pitch.
4. At conferences like TiE-ISB, you get to meet busy VCs over a cup of tea or
lunch, which you will otherwise be able to do.
5. A lot of entrepreneurs are worried about VCs stealing their ideas. My advice to
them is, never worry. They should protect their intellectual property. VCs will
never steal their ideas; they have very little time. So, they should shed that idea
first. I must say this fear doesn't exist in Silicon Valley because so much has
happened there. The level of professionalism there is higher. The fear occurs
because entrepreneurship has been happening relatively recently in India [ Images
]. It will take some time to come out of it.
What one should do after becoming an entrepreneur
1. You have to dispel the notion that 'I want to own 90 per cent of what I build'.
You have to look at making the pie bigger. It doesn't matter whether you own 90
per cent of a $10 million company or 20-30 per cent of a $300 million company.
Your net worth is much higher. So, you have to create and share wealth.
2. You also have to bring in the right people to make the pie bigger.
3. When you scale a company, as an entrepreneur, you start with a lot of
passion. After you build to a certain scale, you have to decide when to step
aside and bring in a professional team to take the company to the next level.
Entrepreneurs across the world have this possessiveness; they want to hold on
to their company very closely.
4. Apart from your hard work, you have to be at the right place at the right time.
Timing is everything. You have to time it right, which is where judgment comes
into play. You may go up to 10-20 million in revenue but, when consolidation
takes place in the marketplace, you will be nobody. You may never get an exit.
Finally, remember that luck plays a major role.
Shobha Warrier
Discussion Board
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10/6/2010 Advice from an entrepreneur turned V…
This seems to be a message coming from someone who has seen it all. No
entrepreneurs want and VCs want is the same - Successful business. VCs h
hence they need a solid proof.
VCs
by Indus (View MyPage) on Oct 09, 2006 05:27 PM
The amusing thing about VCs is that they don't look at you when you need the
wouldn't need them. Finally, when they deal with you, they try to make you an
they have the cheek to tell, you should not be greedy....
good but..........
by Smith (View MyPage) on Oct 09, 2006 01:01 PM
Apart from this what one needs from an entrepreneur is the instinct to judge
a presence of mind and a big heart.You may not get capital in the beginning
your fortune.Get as many knowledge as possible......Anyways the article was
good help
by Petes (View MyPage) on Oct 05, 2006 12:28 PM
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10/6/2010 Advice from an entrepreneur turned V…
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