As I have written in previous columns, the seed capital ecosystem in India is a real bottleneck right now. There are no more than a couple of hundred seed investments that are happening a year. Even if the number doubles this year, it is still a terribly inadequate number to build a real pipeline of hundreds of thousands of entrepreneurs that can meaningfully impact the country.
How can we change this?
To answer that question, we need to first understand why there is such a shortage of seed money in the Indian IT entrepreneurship ecosystem.
You see, Silicon Valley’s angel investors were all either entrepreneurs themselves, or part of an entrepreneurial venture that succeeded sufficiently for its early employees to make significant money. Most of them went through the experience of building a technology product, taking it to market, watching it take off in the market, and then reaping the benefits of that success.
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With so much attention given to the 1% of entrepreneurs who do receive funding, Sramana Mitra turns the tables and presents her analysis of why over 99% of the entrepreneurs who seek financing get rejected in her new book, The Other 99% (Entrepreneurs): Fortune In The Middle Of The Pyramid (Amazon Kindle; September 19, 2013). This collection of instructive and thought-provoking essays by Sramana Mitra, a serial entrepreneur, writer, and founder of the One Million by One Million (1M/1M) global virtual incubator, discusses top of mind questions for everyone concerned with startups, entrepreneurs, capital flows, and such.
What can be done to help millions of entrepreneurs be successful? What causes ‘Infant Entrepreneur Mortality’, and how to reduce it? What roles do incubators play? What roles do corporations play? How to plug the capital gaps in the eco-system? Why is Venture Capital not enough? And what could unlock the fortune in the middle of the pyramid?
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Having a cloud-hosted platform has become the new trend for high tech businesses worldwide. App developers can receive the resources they need to build, launch, promote and integrate their apps with other businesses. This not only creates a bundle of exceptional business tools but it also creates a hotbed of savvy entrepreneurs with working solutions looking for partners.
Two large cloud hosted platforms are Salesforce.com’s AppExchange and the Google Marketplace. These two platforms-as-a-service are prime examples of environments that provide developers the cloud space and necessary tools to build and release their apps rapidly. In turn customers, whether other entrepreneurs, or small or large businesses, can integrate these apps into their own operations simply through the cloud with no downloads required.
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I have written about the platform eco-system trend in technology recently. To recap, a business that has been gaining ground in the tech world is the technology platform developer network model, wherein large numbers of developers can use the platform to build their businesses cost-effectively without the handicap of huge infrastructure expenditure. Some of the better-known illustrations of this trend are Apple’s iOS, Salesforce.com’s Force.com and Google’s Android, which provide developers the necessary tools to build and release their apps rapidly.
This model is now seen in the Big Data and analytics segments as well.
One of the major platform players in the analytics space is SAP’s HANA development platform. SAP HANA is based on a columnar in-memory database that allows deep analysis while capturing fresh transactions in real time. Through its HANA Enterprise Cloud programs, it targets developers as eco-system partners.
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Ever since I read this recent WSJ article ‘At Harvard, Humanities Lose Status‘, I have been disturbed by this question. Actually, I have been thinking about the issue for longer, and wondering how the American Higher Education industry will evolve.
I am curious what your thoughts are on the subject. Here are some of mine:
There was a time in Silicon Valley when VCs did not like the idea of funding couples. Nonetheless, Cisco and 3Com – two legendary Valley startups – were founded by entrepreneur couples. These days, the startup world seems to nurture a lot more romance… Sometimes he is the CEO, sometimes she. Sometimes they switch roles. To have a baby. Or a few babies. Or not. In any case, the bias against entrepreneur couples needs to be over. Entrepreneurship is a passionate affair. A powerful aphrodisiac. Better acknowledge that phenomenon.
A blog post that I wrote on the subject in October 2010 still garners readership and discussions. Meanwhile, our 1M/1M virtual incubator continues to work with women entrepreneurs actively, and I am happy to report that women ARE starting up companies, and building interesting businesses ranging from healthcare IT to e-commerce, and everything in between. >>>
There has been tremendous sensationalizing of the women and entrepreneurship issue. Self-proclaimed (male) pundits pontificate on how women entrepreneurs face tremendous obstacles and huge prejudice.
I disagree.
A blog post that I wrote on the subject in October 2010 still garners readership and discussions. Meanwhile, our 1M/1M virtual incubator continues to work with women entrepreneurs actively, and I am happy to report that women are starting up companies, and building interesting businesses ranging from healthcare IT to e-commerce, and everything in between. >>>