For many would-be entrepreneurs, setting up a Private Limited company involves a vision of meeting with auditors, and lawyers and waiting in Govt offices to navigate through the bureaucratic maze.
Well, that's a myth. If you can spend a few hours now and then, it could be done in a month or less. And if you live in States where e-Governance is being implemented, it could take even less- may be a few days !
Click here to read about the eight steps involved in setting up a private limited company in India.
Go ahead and do it now ! Having an incorporated entity is the basic prerequisite for approaching VC uncles.
Friday, October 13, 2006
Sunday, October 01, 2006
Venture Capital in India - Part 2
Finally, I am able to devote some time this weekend to catch up on all the reading I have missed out since I returned to India in August.
And also post a few thoughts.
Going through the various posts, discussions and comments on Venturewoods, I realize they are doing such a good job. No point in me replicating all those links here again.
It looks like VCs/Y Incubators are more interested in funding the right team than simply a good business idea/plan.If the right kind of team is in place, and if we can show that its a stable, committed team, it seems to be alright even if the current idea being worked on by that team does not have a feasible revenue model.And in some cases, the investors may also supply the right tweaking of the idea to create a viable revenue model OR more interestingly, in the interactions between the team and the investor/s, new ideas with lot more potential for financial returns would take shape.
The above point is in contradiction to what I have been reading/saying earlier. That there are many budding entrepreneurs in India but not many good ideas :-)
May be what the VCs mean by a good idea is not just a revenue model, but a strong team that can see the whole thing through and thereby protect the investment.
All said and done, VC money is still much more expensive than any other form of investment. In the next post/s, I will try and give my thoughts on beating the system. Watch this space !
And also post a few thoughts.
Going through the various posts, discussions and comments on Venturewoods, I realize they are doing such a good job. No point in me replicating all those links here again.
It looks like VCs/Y Incubators are more interested in funding the right team than simply a good business idea/plan.If the right kind of team is in place, and if we can show that its a stable, committed team, it seems to be alright even if the current idea being worked on by that team does not have a feasible revenue model.And in some cases, the investors may also supply the right tweaking of the idea to create a viable revenue model OR more interestingly, in the interactions between the team and the investor/s, new ideas with lot more potential for financial returns would take shape.
The above point is in contradiction to what I have been reading/saying earlier. That there are many budding entrepreneurs in India but not many good ideas :-)
May be what the VCs mean by a good idea is not just a revenue model, but a strong team that can see the whole thing through and thereby protect the investment.
All said and done, VC money is still much more expensive than any other form of investment. In the next post/s, I will try and give my thoughts on beating the system. Watch this space !
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