- Figure out how to make news every month
- PR needs to happen from the top (CEO)
- Key to PR is building authentic relationships with journalists
- Consistent stream rather than 2 month onslaught at product launch

Selling yourself
- Tell People what you are going to do a) b) c) and a timeline
- Comeback and tell them what you did + something else

Venture Financing
- Covenants –> Be careful of them
- Warrant Coverage –> Stock options in the company

Lean startup Methodology?
- Need during customer dicovery phase
- Switch when see a business emerging
ex: LTV (Lifetime Value) of customer is greater than marketing spend

Entrepreneurs need to
- Have A Pulse of what the customer wants
- Listening to all the moving pieces and connect the dots
- Do whatever it takes to get it done.
- Concise thoughts
- Domain Expertise/Exp.

Other Titbits
- The end game is acquisition or profitable business
- Startups are like wine, need time to age.
- Later Comer customer acquisition goes up
- Mobile changes is that people are always connected and provides Escapism

Episode Link — http://t.co/xbwSNai

Slide1 – Problem (Try to personalize it)

Slide2 – Solution (Explain how you take the pain away)

Slide3 – Business Model (Who pays you, channel distribution, gross margins)

Slide4 – Underlying Mantra (Describe technology, secret sauce, magic behind product.  Specifically how does it create value for the customer. Ex: flipkart.com –> very quick, very efficeint delivery service)

Slide5 – Positioning of product (Low Price, High Quality etc) —> Who is it targeting

Slide6 – Marketing and Sales

Slide7 – Competition (Understand why they are better. Why they will not come near you. Don’t deride your competiton

Slide8 – Management Team

Slide9 – Detailed Financial Projections (one year plan).  Key Metrics as number of customers and conversion rate.  Monthly Burn Rate.  Broad Revenue and Expenses for 3 Years

Slide10- Milestones (Past and Future)

Gave presentation during iWeekend Mumbai. More about Seedfund – http://www.seedfund.in/about.php

You can view the full Video of ThisWeekIn Venture Capital Episode #33 here. Below, you will find notes for the episode.

Getting the Meeting

Ask for an intro from (Best to Okay):-

1. From entrepreneurs that are funded by that VC*
2. Industry Experts (VP at Google)
3. Lawyers that know the VC
4. Introductions from other VCs

*Connect with funded entrepreneurs by asking them questions on their funding process.  Directly asking for the intro is a mistake if the person does not know you well.   Don’t necessarily have to go to the founder or the hottest start up in the VC’s investor portfolio. Guys lower on the totem pole and people at less popular companies may be more accessible

The Road Ahead

1. Meeting with associate/gate keeper and/or partner
2. A meeting or two in  between with other associates or partners
3. Decision time – Full Partner Meeting, usually on that Monday

Preparing for the VC Meeting

Before the meeting, get coached:-

1. Understand the team dynamics within the VC Firm
   • Many firms have a few guys that are pushing things along while other follow.
     • Identify these folks and ensure you have their approval
   • Ask entrepreneurs and lawyers who have dealt with the firm
2. Understand what each partner wants
   • Who’s the quant that bases his decisions on numbers?
   • Who’s the VC that bets based on the founding team?
   • Lawyers and Associates can help you

Come with:-

1. Team
2. Demo
3. Slide Deck
4. Business Plan

Team:-

1. First Meeting – One person if only one VC present
2. Second Meeting –  Two to Three.  More than that is a mistake
   1. One person should not dominate the conversation
   2. CEO is the quarterback for presentation and questions
      1. Two Peeps – Talking split 65% to 35%
      2. Three Peeps – Talking split 50%, 25%, 25%

Slide Deck (Slides in order):-

1. Founder basic intro* (school, work exp.)
2. Problem definition (what is the problem — people don’t have water)
3. High Level Solution
4. Detailed Solution and Demo**
5. How do you monetize (Unit Economics)
6. Competition
7. Progress to date
8. Size of Total Addressable Market (TAM)
9. Potential future exist***
10. How much money are you raising (Range is okay)

Other tidbits about the slides:-

• 10 slides 12 at the max and should last 20 Minutes
• Mainly for credibility*
• Detailed Financial Models, Market Research etc go into the appendix
• Real Demo is almost a must for a web startup but screenshots may also do**
• Explain that not looking for a quick flip and our goal is to run this for the long-term.  But realistically, here are future possibilities***

During the meeting:-

1. Park questions during presentations (politely)
   • (Quick Answer, detailed answer after presentation or quick call after meeting)
2. Find a proxy for support and one or two supporters
3. Wear a Sports Coat with Khakis or Jeans. Ties not required and no T-shirts

How do they decide:-

1. Cannot have single partner thats says “Over my dead body”
2. Usually a consensus rather than a vote
3. ALL GUT!

Decision is a No:-

1. Means Go Way
2. Need to find the balance between annoying and persistent

Other tidbits:-

• Don’t ask a VC to sign an NDA
• No one important reads the business plans sumbitted on the website
• Approach VC who is focusing in your sector
• Financial Models important (how you make money, how you figured it out customer acquisition cost etc)
• Milestones list is important
• Pitch needs to be cohesive and a story
• Pitch needs to explain a trend and it should be cared about
• Best Pitch is a conversation
• Get the VC Talking and keep them engaged
• People like people that listen
• Takes a minimum of 3 to 6 months to raise capital
• VC’s like focus.  They need to see that this is your obsession
• Proximity matters
  • Go to the big city
  • Go to conferences, if you can’t afford it.  Hang out in lobby.

If you find missing or misrepresented information or information that compliments this summary, please comment.

Working for a startup is a more wholesome experience than most corporate jobs.  Lets begin at the point of entry, the application process.   At a startup, you have to look at several aspects rather than just the job description to write your cover letter and prepare for the interview.    For instance, the leadership team and company history really matter at a startup where as knowing the CEO’s name and a quick glance at at the corporate history on Wikipedia is good enough for a corporate job.  At a startup, the CEO’s decisions have a much frequent/higher impact on employees.  Other than the bullshit once a quarter CEO web-conferences, few people know/care what the CEO does at a corporate.

Company positioning, competitors, progress etc also matter more at a startup.  At a corporate, people still apply/get permanent cushy jobs at companies going down the hill with poor mgmt (Ex: Yahoo!).  While Yahoo may be half way to its grave, it still got a few years in its lifeline. And when that critical point comes, the company will simply be bought out rather than shutting down doors.
What matters at a corporate is the 100 word job description and your boss.  More likely than not, everything a prospective employee may do, has been filled into the box.  The job is highly specialized and the templates are almost already built.  At a startup thats hardly the case.  Its more important to showcase that you can learn on the fly and have no problem doing seemingly unrelated tasks.  You are the person that writes the job description since no one really knows the tasks that will come up.
The biggest difference is the rush for the unknown that bring fantastic adventures and failures.  You may end up in India for 6 months without a solid game plan/task list in place for all you know.  Yeah sure, people go abroad with corporate jobs as well.  But, you are doing same work at the same odd hours.   At a corporate job, the rush comes when you take the paycheck to the mall.  The job really has little room for excitement or the unknown after the first 6 to 12 months (maybe 24 months).  Most things are mapped out including the promotions and pay scale.

If you prefer going to Six Flags everyday, then th startup job is for you (well, not if you only stand in line for the tea cups )  Start applying today.  Enternships is a great website to find entreprenurial jobs and mass mail startups you are looking to work at.  If you can’t write code, show them you are a hustler and will do whatever needs to get done.  Every startup needs one of those and will more likely that not let you jump on board.  Apply to startups that have a strong leadership team, have traction or about to get on the road.  Work for close to free and do it for learning. If you are under 25, you really don’t have many responsibilities and don’t have much to lose.   Do it for 3, 6 or 12 months, but do it.

Its worth it, I tell you from experience.

Then, I read White Tiger by Aravind Adiga on my way back to Hyderabad, and that changed perspective.  Rather than returning as a proud Indian, I was hit with the realization that the situation is pretty much the same as it was ten years ago.  The shiny metal new metal around town is like a bandage on an open wound.  It will hide the wound, but the blood will eventually start rushing out again because it never actually clotted.

India remains the same

1) the caste system shackles many people for life

2) the  government teachers teach less than baby sisters

3) the gamed bureaucratic system hampers much progress

4) The cycle continues, the rich remain rich while the poor wallow in their own shit

5) The system has disallowed an Indian Dream for the poor

For many, their Surname is a social handicap.  Fate gets to largely decide who gets to live the life of the king and the pauper. Most people end up following their  forefathers because nothing else seems in the realm of possibility.  If a person’s last name  is Halwai, society pits him to be a sweet maker.  The mindset is fed from birth and the individual cannot begin to believe that any other path is even possible. After the parents of the child, teachers hold the power to alter the direction of a child’s life.

Unfortunately, learning from quality teachers is rarity for most of a poor child.  Government teachers are absent 1/4 of the time!  The days they are in school, many sleep all day long.  To show results,  the teachers write out answers on the board for students to copy on national exams. If quality inspectors come around, they are just bribed and shooed away.The corrupt officials take the bribes and misreport information. Even with several  checks and balances in place, the sytem in entirely corrupt.  Policy makers write  more rules to fight corruption, but that actually feeds it. It basically means  passing out a heavier brown envelopes to more officials.

The people that primarily benifit from the Indian system are the rich.  They have the connections to find the right official to put on their payroll.  The poor don’t have the cash nor will a ‘Babu’ allow them in their office.  They are forced to take their issues through the very flawed system which is the cause of their misfortunes in the first place.

This all culimantes to India remaining India.  The shiny metal has not really changed the lives of the majority.  While its India’s problem, the size of the country really makes its a global problem.  India is either the anchor thats holds us back or the sails that moves us forward.

In future posts, I along with a guest authors will challenge the argument in this post and find examples showcasing the poor rising out of poverty.  We will also identify entrepreneurs and explore ideas that lead to financial and social inclusion for the masses.

If you have any interesting research studies, articles or books that can help with the research, please post the links to access the below.

- Different is better when effective and fun

- Less is not laziness

- Don’t let circumstances determine your life

- The timing is never right

- Leverage your skills

Tried avoiding interruptions.  Started craving it within 20 minutes – Its a skill that I need to build up.

Bribing government officials is pretty much the norm here.  For those who fight it for “ethics” sakes learn the hard way.  Let me give you a couple examples:-

Guy from the U.K started a business which is heavily dependent on the import of goods.  Delivery was usually late for some reason or other.  Beyond that, goods were missing or damaged in most shipments.  The guy stuck to his guns and did not bribe any official for a few months. That all changed after he had a meeting with his accountant who notified the guy that he was running his business into the ground.  He eventually bribed the officials and the shipments came in on time, untouched.

Same guy had his offices raided by government auditors.  Even though his book were fine, the auditors asked for a brown envelope.  Even after soliciting a bribe, the auditor had the audacity to ask for some free samples.

You have to accept it.  Idealism does not mesh well with reality.  You can either stop reading now and learn the hard way or do the following to move things along quickly.

1.  Ask the person how much it takes to make the problem go away.

2.  Tell him that you can only give him 25% of his initial “request”

3.  Quip, cry and do whatever it takes to bring down the price.*

4.  You should pay no more than 40% of the initial value.

* Tell him that your business is new and that you have no money.  You should always mention that this is only the start to a wonderful relationship.  In the long-term the guy will do well if he lowers his price.

** Speak in Hindi or the local language.  You will be ripped off if you have an accent or speak English.

*** Asking for a bribe may make you think that you will go to jail.  But, its almost a daily thing here. Thats the only way cops pay their rent every month.  The salary is so horrendous for most government officials and the only way this is the only means to survive.  The system itself is built for bribing to take place.  You as one person will not change the way 1.2 billion people function. Pay the bribe and move on.

**** Tips coming from a person that has been here and done well.

Ideas are a culmination of other ideas and thoughts.  Its just that some of them are actionable.   When the apple hit Newton, the idea of gravity only came to fruition because he had been a scholar for more than 20 years.  Newton had curiously observed, problem solved and stored a vast database of knowledge that led to the realization of gravity.  And not really the realization that gravity existed, donkeys know that everything falls from the sky to the earth. Newton’s past experiences allowed him to mathematically explain gravity.

The author suggests to immerse oneself into a subject matter to begin the process.  Our mind automatically races – connects seemingly distant ideas and builds ‘new’ thoughts.  Creative people, if such a type exists, are able to do this more frequently than others. This characteristic is also found in the people in the insane asylums as well.

While engaging and building an expertise in your field is important, it is just as important to step outside and do other things.  Taking breaks, relaxing and learning about something else is just as important.  I would compare it to “sleeping on it.”  And it works.

Actions to take to organize thoughts and executing :-

1. Start an idea journal (Evernote is a good tool for that)

2. Step away give yourself a minute to breath (Meditating helps – After I have an ‘ephipany’ I now take a minute to close my eyes and just focus on breathing.  Time seems to suddenly slow down.  The key, (learned from Mathieu Ricard) is to acknowledge the thoughts that are racing in your head and then letting them go rather than building/holding on to them.  Will have a post on meditation in about 6 months or so (need some practice first

3. Work out.  Do Legs! I seriously forget everything after working out legs. My mind resets  to only focusing on the Physiological needs (Food and Water)

4. Take an improv class.  I actually did do that before reading this book.  Met some pretty eccentric people who did some pretty awesome acting.  Put me out of my element, which is always good. Plan to take more at ComedySportz when I am back in Chicago.

5. Observe.  Connect pieces. I went to visit a few friends in Champaign, IL and took a bus back.  The tickets were $26 and we had 4 people in a small bus. As I stared at the endless cornfields, I constantly thought of the business model of the bus company.  How does it make money?  The driver, cost of bus main., gas, benefits, etc itself probably cost the company a $100.  Talked to the bus driver, and asked him how many people are on the busy routes, if they get paid more to ride the bigger bus that carries more people etc.  Learned a lot about the busing industry and also about the bus driver – (He apparently like it on the bus more than with his wife at home!)

One quick tip of asking strangers random questions that fuel your curiosity - Get to know them first.  People love talking about themselves.  If its a dude – tell him he has a nice watch — its the best ‘pick up line’ per say for guys to start answering your questions.

Author has a quick bit on pitching an ideas as well :-

(not authors, but read it somewhere – to build your pitch – FIND THE PROBLEM by asking people questions to build your ptich.  How they currently do things and whats painful.  Don’t try to pitch your solution.  The more the person likes you, the more they will agree that you are the next Steve Jobs.. so learn the problem)

1. Constant Revision

2. Know your audience

3. Stick away from abstraction “saving lives” and talk about how you are doing it

4. Practice

5. Have a 5 sec, 30 sec and 5 minute pitch

Small sample of books recommended by author:-

1. Founders at Work

2. Brain Rules

3. Inventors at Work

4. Innovation and Entrepreneurship

5. How breakthrough Happens

6. The Art of the Start (A personal favorite)

The book is a well-written account of the author going back to Mumbai, India after a two decade or so hiatus.

Any and every part of the government is corrupt and that the only way it seems to function. Its abnormal to meet a honest police man; which should be expected in such an environment.  It even extends to school trustees and religious officials.  Bribing is the convention and seen as a bonus to your salary.  Public officials are poorly paid and it only makes sense for them to directly reach out to the taxpayers and collect their appropriate fees.

The government officials that supposedly run the city are owned by mobsters.  In a case, one of the job judges went to a mobster to settle a financial debt owed to him by some who is now unwilling to acknowledge it.  With thousands of backlogged cases, it would take years before a court decided on the case.  Instead, it was easier to go to a gang lord who decides the verdict immediately and has the means to extract the funds.  Off course, the gang keeps a portion.   Its even more interesting to learn that the gangsters are actually listen to both sides and are fair with their verdict.  The gang dynamics are similar to those in the U.S. ( from what I know watching GangWars on History)

Most gang members are poor men that need a home.  Gang members take care of each other and are one tight knit family.  What binds them together is the need for power.  For a better part of their childhood, these men have been had no control of what happens to them.  Moms are raped, siblings die because their medical expenses cannot be afforded and their alcoholic dad leaves and when he is home — it usually meant a beating.  The gang empowers these individuals by giving them money and an opportunity to control others through violence.  With no education or mentorship, the gang seems the best fit.   And from here, it usually a downward spiral.  When gangsters reminiscence, they usually pray after and mention that they hope to provide a diffirent life for their offspring.  But many will not have the chance to guide their children through life.  They are either killed by rival gangs or in “encounters” by the cops.

Like the mobs, cops seek their own justice away from the courts.  Once they find enough evidence against someone, they are usually hunted down and shot.  In the official police reports, its stated that the cop killed to defend himself.  Sometimes the alleged criminal is taken to jail and literally beat to death.   This happens more often that we can imagine.  Whats expected is that the top gang members are excluded from such treatment.

They are actually the kings and princes of Mumbai.  Bal Thackeray, the leader of Shiv Sena which is a Hindu nationalist party is actually protected by the Indian guard in his fort like mansion.  Thackeray allegedly (never convicted even with strong evidence)  instigated the Hindu-Muslim riots that claimed thousands of innocent lives.  Shiv Sena activists burnt, killed and raped anything that as much as reeked  of the Islamic faith.  This instigated people on the other side to the same.    Even after all of this, Thackeray maintains a strong grip on Mumbai.  A Bollywood fanatic, he had the power to bail out an actor (of a Muslim mother) that was in some dip shit.  Anybody doing anything big in India must have Thackeray’s approval.  Even Michael Jackson had to pay his homage to Thackeray on his visit to Mumbai.   Other mobsters have actually been convicted and fled the country.  People like Dawood Ibrahim live in Dubai or Pakistan and run their operations from there.  These men receive similar treatment. They are well respected by their constituency and the leaders return the favor by taking care of them.

What binds Mumbai together is Bollywood.  Mobs are infamous for financing the movie industry since the banks find it too risky of a proposition.  Not only that, the mobster get to live out their lives on the big screen.  When their is a insane action scence between the cop and criminal or when a dude hopelessly falls in love with a girl,  they personally relate to it.  Whats more is that the gangsters have the ability to make the movies a success. Here is their formula — Get B list directors and A list actors. Since fans are only crazy for the actors and actresses, the script does not really matter.   While the formula seems simple, only the gangster have the power to get an A list actor to do THEIR movie from the hundred they can choose from.  Whats important is that movie goer does not care for all of this.  All they care is to see their actor/ress on screen.  Many of the movie goers are middle and upper class citizens that are almost oblvious to the rest of Mumbai.  They live in their tiny bubble with their spa treatments and pedicures and don’t really see Mumbai for what it is.  They will live, raise a happy family and die in their cocoon.  The posh areas almost live on a different planet.

Oh…beside Bollywood money has a pretty strong binding effect on people as well  They will trade in the morning and vow  (and sometimes carrrety out)to kill each others kin at night

Implications to Business :-

1. Throw away your degrees and put out your Rolodex.  The only way to succeed is by knowing people.  Lalu Prasad Yadav signed his name with thumb and ink and was Governor equalavant for 7 years.  He is not an oddity.  Old, uneducated but well connected individuals run India

2. The only way to learn the environment is being immersed in the culture.  Set out a week or two to simply talk to people and learn.

3.  Cash is King.  The economy is basically run on cash; credit is not available to the masses

4. Get to know your Bollywood films.  They will be important in conversation and help you relate to the culture