Building Tech Startups in India: Observations (Contd)

· Mentors

Entrepreneurs, especially first-timers, gain much from having access to experienced executives and academic experts either as informal advisors or as members of a formal board. Entrepreneurs I have talked to have either

1) tapped into US/Silicon Valley entrepreneur networks they were previously part of,

2) leveraged their connections with previous companies, universities and investors, or,

3) found very few local mentors to talk to on a regular basis.

Networks such as TiE or the Indian Angel Network are good venues to find potential mentors but the challenge is to find those who can engage with the firm on a regular basis and not an ad hoc basis. Some other entrepreneurs have used their investors as advisors for key strategic decisions.

Another issue that startups seem to wrestle with is how and when to put together a formal board of directors and advisors. There are benefits to having a strong board early on in the process but there are downsides to spending time and effort on putting together the board rather than the product.

· Manpower

Investors note that it is difficult to find entrepreneurs with strong defensible product ideas, partly because of lack of strong research-industry connections. Entrepreneurs, in addition, point out that hiring is often the biggest challenge in growing a startup. Given the booming economy, the perks of large service companies and obligations such as home loans, many employees are reluctant to leave the stable jobs for risky startups, unless compensated comparably in cash. Part of the reason, entrepreneurs say, is the lack of precedence of startup success stories and partly, an aversion to risk and failure.

Another challenge entrepreneurs have is finding like-minded professionals to brainstorm ideas and potentially co-found companies together. Professional networks such as Bar Camp, Mobile Monday, Head Start, TiE chapters, and even apartment associations are quoted as useful to meet fellow entrepreneurs, potential co-founders or early employees.

Some entrepreneurs have found that it is easier to attract younger professionals since they value working with peers in a collegial environment and being given greater control over the product and the company’s direction.

(Continued)

This segment is a part in the series : Building Tech Startups in India