You Can Start Business With A Fraction Of Captial

Amish Jani,

Managing Director, FirstMark Capital

First is the continued growth in the consumption of digital media services, particularly in areas like online video, gaming, and social media. These emerging areas are supported by new modes for monetization, from virtual commerce to next generation targeting to advertising aggregation services such as exchanges.

Second is the rise of on demand and cloud computing based services as technology continues to push down into the small and mid-sized business space, and technology providers leverage the opening up of massive computing infrastructures from the likes of Amazon, Salesforce, Google and others. Third is the vast disruption in various vertical areas, such as financial services, insurance, healthcare and education.Fourth is the huge growth in data, derivative data, and analytic services to make sense of that data.

Advice to entrepreneurs
We believe it’s actually never been a better time to be an entrepreneur. You can launch businesses at a fraction of the capital amount one could in the past, and quickly get market/customer feedback. This is at a time when the broader world is going through huge secular shifts. Dislocation always breeds opportunity. My advice to entrepreneurs is to absolutely manage and optimize one’s capital requirements. Think about how much money you need to get to the next value-creating event, and avoid the temptation to vastly over capitalize one’s business early on. Founders and employees have an amazing ability to retain equity ownership in this market - take advantage of it. And beware of the VC that forces you to take more capital than you need because that’s what they need to make their model work!

Reader's comments(2)

SiliconIndia StartUp City - View and post comment about this article

Post your comment

Archives

Post your valuable comment here

Email: Password:

Char left

Comment 1: By Rajinder kumar Malhotra on 10th Feb 2012

You are right Amish, Evan i have one option in health care too, people interested may can visit the site or can write to me .
Hope this will find you in best of health.
I am working as Investment Adviser, Trainer and Motivational Speaker but by my choice also working for the better health of people. In this regard {as you are in mlm business} i would like to suggest you to go to site World's no 1 in Ayurveda food supplements for better health. As you know allopathy do not have cure for many problems but when you visit this site and look each and every product, you will find that there all products are scientifically proven and clinically searched , approved by NABL, ISO 22000 CERTIFIED, 22 YEARS OF RESEARCH, 69 US AND INTERNATIONAL PATENTS.FOR MORE INFORMATION PLEASE FEEL FREE TO WRITE TO ME OR CALL ME AT regards. R.K.Malhotra

Comment 2: By Sameer Goel on 4th Jun 2009

Sir, I have completed my B.E in computer science few days ago and have a very great idea of a business and I'm very optimistic in terms of the success of that business very rapidly.
But the problem is the capital required for that and I want a VC to fund this project and in this regard, i have some questions following below:
1. How can i trust a VC that after seeing my business plan, he won't invest in that project on his own and reject my proposal because for him, I have nothing but a great idea and great enthusiam to be successful in that.

2. I have seen many articles saying about the contents of the good business plan but no one has the detailed description of the contents of the business plan. So, how can I get the detailed list of the contents of a business plan.

3. How to find which VC would be my true business partner and on which parameters I should choose them. Can you provide me some references of VCs interested in investing initially 1-2 crore in a business in IT field.

4. Since I am not from a business family and havn't done MBA, Would it be better to enter in business field right now or to first do MBA and then get some experience in any company and then start my own company. I don't want to wait for 5-6 years because I have threat in my mind that if someone would start that kind of business before me, then I will loose the competitive edge i would get otherwise.

Most popular VC Talks

Sanjay Subhedar-SiliconIndia Startup City Entrepreneurial Lesson section

Venture Capital Today A Perspective By Sanjay Subhedar,Co-founder & Managing Director,Storm Ventures

To understand Venture Capital today, we need to first look back at the past performance of this investment class. Historically Venture Capital returns have been on average 800 basis points better than the stock market. In other words when the NASDAQ, DJIA or S&P 500 were delivering 12 percent to... more>>

Rutvik Doshi-SiliconIndia Startup City Entrepreneurial Lesson section

We Are Biased For Technology By Rutvik Doshi,Principal ,Inventus Capital

Inventus is an early stage venture capital firm investing in a broad range of businesses that leverage technology in a significant manner. In the past, Inventus has backed companies in the Internet, Mobile, Software & Services space and will continue to do so in the future. Even though we look at... more>>

Emerging Trend – Potential for IT Service Providers to Obtain PE / VC Funding By Rajeev Srivastava,CEO & Managing Partner,Basil Partners

According to Gartner, global IT Service spending in 2010 was approximately $800 billion but there seem to be very few, if any, PE / VC firms that invest into IT Service providers. The focus of any PE / VC company is to ensure a huge upside for its investors and the only way to ensure the same is... more>>

Financial Services & Education: Potential Areas for Startups By Bejul Somaia ,Managing Director,Lightspeed Venture Partners.

The areas we invest in India are fairly broad. Currently we focus on four investments— power sector, financial services, education and media. These sectors seem to be reflective of the opportunities set in India. Even though these sectors sound like traditional sectors we have actually invested... more>>

More>>