Given your experience
in dealing with new
startups, what is the
most common mistake
they do?
One aspect that is
very important but
ignored quite often is
the articulation of your
idea before the investors
or while applying for
funding. Communicating
the novelty of idea that
startups bring in must
be clear. Therefore, the
startups must focus on the
articulation as much as
the product development.
And at the same time,
they must understand
that idea alone won’t take
them forward. They must
know how to convert the
idea to business. It is a
combination of factors.
A lot of people come
but the knowledge of
competitive landscape is
not yet known. They have
only looked at their own
technology and said this is
the best technology. They
have no idea of what the
rest of the world is doing.
As an innovator, you
are largely solving
the drawbacks of the
competitor products. In
few cases, the competitor’s
product is unaffordable or
may be inaccessible in the
rural areas. The startups
must understand that
unless and until they have
identified a drawback or a
problem, they will not be
able to create a solution or
market respectively.
What are the
challenges that
startups generally
undergo after
receiving the
seed funding?
It is a very difficult phase
for a startup. That is
where they must survive.
Some have to survive
long enough to figure out
where they are heading.
Generally, when startups
get funding, assuming
maximum of Rs 50
lakhs, the honeymoon
period begins. Suddenly
realization starts after a
while that they have to
bring the bread on table.
So, they ask the question
that how do I get that.
Then they go and meet
people and realize that the
solution you have is not
working out.
For startups, the early
realization and response
to realization is very
important. What I have
been thinking is not right
but now another version
for me is right. That
realization is the key.
Next stage is where the
Venture Capitalist or VCs
come in with at least a half
a million fund. Challenge
is when the technology
intensive startups get that
in absence of the clear
market understanding.
And they fall short of
expectations of these
VCs. This has happened
earlier leading to lack of
confidence. Now it has
been seen that they are
ok with a government
funded startup mostly
One aspect
that is very
important but
ignored quite often
is the articulation
of your idea before
the investors or
while applying
for funding.
Communicating
the novelty of idea
that startups bring
in must be clear.
BIOVOICENEWS.COM
13