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Rule 12. Money is everywhere
Think of
everyone as a potential investor. At the earliest stages, the cash you need to
operate (for phones and computers and office space) is likely to come from
friends, family, credit cards, or if you're lucky, a particularly enthusiastic
angel.
Even corporate funding has arrived in a big way. Having
realized that the New Economy is about ideas and people, companies are now
going all out to make sure they lose neither. They are offering money,
infrastructure and management expertise to help execute the plans. It's all
about getting a mint-new outfit -– preferably based on a New Economy idea
that's linked to what you do, though that's not mandatory, up and running as
soon as possible.
Satyam has two corporate funding programmes, one for its
own employees and the Strategic Investment Program for funding outsiders. It
also networks actively especially in the Silicon Valley, through associations
like the Indus Entrepreneurs to keep tabs on what's happening in the industry.
Outfits like Crisil (Credit Rating and Industrial Services
India Ltd.) and Shoppers Stop are helping their employees set up Net versions
of their bricks and mortar businesses and expanding in allied areas. Most
Indian firms are figuring out ways of making sure their big-company mindsets
don't come in the way of being successful VCs. BPL has set up a subsidiary,
BPL innovision which handles all its VC activity. Moreover, its putting up
‘venture boards' which means teams of people with prior VC experience on its
side. With this move, BPL will be among the first to gain access to the best
new ventures.
VC firms are also planning to join hands with brick and
mortar companies to jointly put up venture funds with them. The rationale
behind this is corporate venture capital backed startups will have a better
strike rate. So if you have a sound idea, getting the money for it should be
no major hassle.
