Trends For Investment
Promod Haque
Partner,
Norwest Venture Partners
Norwest Venture Partners
Advice to entrepreneurs
The current market conditions will continue to put companies through difficult times this year. That’s why we’re working closely with our own portfolio companies to manage their cash during the downturn (as we’ve done during previous downturns). We’re advising entrepreneurs to be extremely cautious. Based on past experience, we know they will continue to experience a squeeze in spending, as we have already started to see this year. It takes longer in this economic climate to reach a meaningful exit (M&A or IPO, and the IPO window hasn’t opened yet). Therefore, conserving cash and finding a way to reach cash flow breakeven is critical for these companies.
The good news is that we believe that companies with strong fundamentals will be rewarded over time. But they need to make it through this tough economic environment, save cash, keep the burn rate down and reach cashflow breakeven sooner. Ultimately, the team’s patience, passion, ability to focus on cost efficiency and perseverance are key drivers to success.
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Reader's comments(1)
1:
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.
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.
Posted by:Sameer Goel - 04 Jun, 2009
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