The Hindu Business Line : Package IT right

One of the reasons for this has been the inability to present a business plan that is viable, one that is presented with clarity of thought and with a depth of understanding of the issue sought to be addressed, says Arindam Dutta, invitee judge at t he Intel-University of California Berkeley Technology Entrepreneurship Challenge organised recently by the Haas School of Business, University of California Berkeley.

To attract VC funding, Indian technology entrepreneurs must present a business plan clearly stating the objectives of the business with style and sophistication, he says.

Dutta is in charge of business incubators at the West Bengal University of Technology, St. Xaviers Autonomous College, Kolkata, and the Innovation and Entrepreneurship Cell at Kalinga Institute of Technology, Bhubaneswar.

In an interview to eWorld, Dutta says VCs are attracted to business plans that showcase the level of technology, the scalability of the engineering design or innovation and the pricing of the product or service offering. Excerpts:

Tell us about the Intel-University of California Berkeley Technology Entrepreneurship Challenge.

It is an event that showcases business opportunities with the greatest potential for a positive impact on society.

The focus is on business plans that make integral use of novel technologies in areas such as semiconductors, manufacturing and hardware, mobile and wireless, digital home and consumer electronics, enterprise software and IT, retail and consumer software, nanotechnology, life sciences, healthcare and biotechnology.

This year, eight teams from across the world made it to the finals. The winner was chosen by a 10-member team of judges that included seven venture capitalists of high repute.

The process is extremely scientific and transparent.

What do technology start-ups in India need to learn from the programme?

The first thing that we need to realise is that incubatee mentoring is the crux of a successful business plan and, thereby, the success of a start-up company. Thus, we need top-quality mentors for mentoring incubatees and start-ups.

Next, we need to realise that a business idea evolves from the dream of an individual or group of individuals. It is important that such an individual or group must have access to someone who can do the hand-holding and be a mentor for a period of time before funding for the venture can come in. Of course, such a person must have the full confidence of the team he mentors.

Why aren’t tech start-ups in India attracting VC funding in greater numbers?

The idea of VCs in India is confined to SIDBI or commercial banks or certain agencies of the Government of India. In the US, the lexicon of a VC is different.

There, it is very difficult to meet the expectations of a VC and convince him to invest in your idea.

The Intel-UC Berkeley Technology Entrepreneurship Challenge has, in my opinion, provided us with a new window meet this challenge.

So how can Indian start-up companies go about it?

The first thing is to prepare a business plan clearly stating the objectives of the business.

It should make specific mention of assessing the potential of local, national and global markets.

It should also assess the manpower requirements of the business, the sourcing of funds and marketing of the product offering. There should be a strengths, weaknesses, opportunities and threats (SWOT) analysis of the product or service that is sought to be introduced.

The SWOT analysis should take into account global markets because competition today can come from any part of the world. And finally, the team presenting the business plan to the VC must have excellent communication skills.

If all these can be packaged together, it will become far easier for technology start-ups in India to attract funding from big-ticket VCs from across the world.

ambar_singhroy@thehindu.co.in

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