galatime.com - Kaushik Gala

Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.

ARCHIVES

 

Pune

› Technology Venture Investors in Pune

 

Technology Entrepreneurship in India - Teams

› Entrepreneurial traits

› Picking cofounders

 

Technology Entrepreneurship in India - Generating Revenue

› Is your business model well-defined?

› Your industry's value chain

› What is your value proposition?

› Which distribution channels will you use?

› Who will drive business development?

 

Technology Entrepreneurship in India - Raising Capital

› Venture capital & venture capitalists (VCs)

› Corporate venture capital

› Angels & angel networks in India

› Government support for Indian startups

› Proof-of-concept funding

› Do you need a business plan?

› How much money should you raise?

› Startup valuation

› Pitching to investors

› Figure out the term sheet

› Negotiating with investors

› Due diligence - A necessary evil

› Time to sign the investment agreements

 

Equities, ETFs, F&O

› Oct 2011: Equity Risk Premium for India

› Jun 2011: Investing in Indian equities

 

Technology Enterprises in India

› Nov 2010: Technology investment in India - WATER

› Aug 2010: Technology enterprises in India - 3 avatars

 

Risk Capital for MSMEs

› Mar 2010: Risk mitigation for investors in MSMEs

› Mar 2010: Why don't (Indian) MSMEs get risk capital?

› Feb 2010: Angel investing - Will it work for Indian MSMEs?

› Feb 2010: What's so special about innovative MSMEs?

› Feb 2010: Where do Indian/NRI (V)HNIs invest?

› Feb 2010: Funding options for innovative MSMEs in India

› Jan 2010: Innovative MSMEs in India

Proof-of-concept funding

(Last revised Mar-2012, Send comments to galatime@gmail.com)

Every so often, entrepreneurs work with scientists to pursue startup opportunities. This usually happens when an entrepreneur who has market insights meets a scientist who is working on technologies that might turn into relevant solutions.

Since the scientist is usually working in an academic/research setting, there needs to be further R&D before a new venture can be created. With the entrepreneur's involvement, such R&D can be focused & directed towards a product/service.

In such cases, the entrepreneur and scientist can access proof-of-concept ('PoC') funds. These funds, usually run by universities/government, are meant to support the early stages of technology commercialization. The outcome of a successful PoC initiative is ideally a spinoff, less ideally an out-license of the IP/knowhow.

As of now, only a handful of institutions in the US & UK run such funds. Moreover, scientists need to drive the fund-raising process, since it is they who will receive the funds, with the expectation that these PoC projects will turn into startups.

Trust and patience are key to making this work - entrepreneurs will not have the same control during the PoC stage as they will after venture creation. Successful PoC-funded projects are the result of well-defined market problems translated into clear technology development goals, captured in a sensible business model.

Perspectives