A presentation made at M-Power, SPJIMR\'s Annual BPlan Contest

1. Starting and building
a great business
venture
Indranil Deb
PRESENTATION INSPIRED BY prezi.com
January 2012
098336 27280
mobiusstripcapitaladvisors@gmail.com

2. In this session, we
will discuss the meaning
of Social ventures, why they
are necessary, who start them,
who back them, and why they
succeed or fail to make an
impact.
We will also look at
some real cases.

4. A social enterprise is a venture that primarily seeks to
achieve philanthropic* goals. They can be formed as for-
profit or non-profit
In India, the most popular forms of such ventures are
Organisations adjunct to Trusts(under the Indian Trusts
Act,1882) or entities formed as Section 25 Companies(under
the Indian Companies Act, 1956)-primarily prohibited from paying
any dividends to its shareholders
*philanthropy – love of humanity
love- caring for, nourishing, developing, enhancing;
humanity- “what it is to be human”

5.  Require founders, members and stakeholders to be of
a philanthropy and service mind-set
Have been known to play a serious role in bringing
about social change – hence impactful
Is acting happy hunting ground for many talented
young corporate professionals who are finding the
present culture as fostering a meaningless “rat-race”-a
life devoid of job-satisfaction, self-respect and values

6. Do serial entrepreneurs have a leg up on first time entrepreneurs?
Caza_No_7
Answer: Yup. Serial entrepreneurs are more likely to build successful startups.
According to the Harvard researchers, there is performance persistence in entrepreneurship.
They write, "All else equal, a venture-capital-backed entrepreneur who succeeds in a venture (by our definition, starts a company that goes public) has a 30% chance o
Read more: http://www.businessinsider.com/why-some-startups-succeed-and-others-fail-10-fascinating-harvard-findings-2012-1#do-serial-entrepreneurs-have-a-leg-up

15. Organisation Life Cycle
Stable Aristocracy
Prime
Premature Ageing Early Bureaucracy
Divorce
Adolescent Bureaucracy
Unfulfilled Entrepreneur
Go go
Family/Founder Trap
Death
Infant Infant Mortality
Courtship
Affair
Growing vs. Ageing

16. Expansion
Prototype
Inception
Roll-Out
Maturity
Growth
Risk Levels
Technology High Moderate Low Low Low Low
Market High High Moderate Moderate Low Low
Execution High High High Moderate Moderate Moderate
Finance High High High High High Moderate

17. WILL GETFUNDED ANDGROW SOMEWHAT
WILL GET FUNDED AND LIMP ALONG-DOUBTS ON EXE
WILL GET FUNDED AND LIMP ALONG - DOUBTS ON EXEC
WILL GET FUNDED AND LIMP ALONG –DOUBTS ON EXECUTION
WILL DIE BECAUSE OF NO FUNDING WILL DIE BECAUSE N
WILL DIE BECAUSE OF NO FUNDING WILL DIE BECAUSE OF NO
WILL DIE BECAUSE OF NO FUNDING WILL DIE BECAUSE OF NO FU
WILL NOT GET STARTED AND DIE WILL NOT GET STARTED
WILL NOT GET STARTED AND DIE WILL NOT GET STARTED AND
WILL NOT GET STARTED AND DIE WILL NOT GET STARTED AND DIE

19. •What questions
would entrepre-
neurs generally
face ?

20. 1. Lack of focus or specificity about the problem/ issue
being addressed
2. Lack of clarity about the consumer/ user segment and
the size and complexity of the problems
3. Inability to convince others to join the team/ venture
4. Have put together a team but do not have enough
know-how about how to go about solving the problems
that we promised to solve
5. Need a CFO, Need a Senior BD Person, Need a Mentor

21. Public Services or Affordable Paid-Services are not
Available to a large segment of the population. Examples of
such services are:
1. Advanced Healthcare, Treatment of Disabilities or
Handicaps
2. Services related to skilling, employability and
employment among economically weaker sections
3. Infrastructure-Transportation(from home to place of work)
4. Communications(Internet, Email, Mobile telephony)
5. Digital media for trade and commerce

22. 1. Founders’ Capital/ Contribution
2. Foreign Government Grants
3. International Agency Grants
4. Global Private Family/ Endowment Funds-Grants
5. GOI Grants/ Subsidies
6. Corporate Donations
7. Campaign Contributions/ Donations from Individuals
…… continued

23. 8. User-Charges/ Fees
9. Loans from financial institutions/ banks
10. Angel funding
11. Venture Capital

24. Growth Stage
Inception
Prototype
Expansion
Roll-Out
Maturity
Growth
Typical Funding
Founder/ Private Late Stage
Promoters Moneylenders VCs
Family & NBFCs Growth Stage
Friends PEs
Early Stage
Angel Banks
VCs
Investors

25.  Transformatory stages
 Capital intervention point
 What is end result when the
funds are consumed?
• Strong management team
• Strong advisory board and
good board
• Revenue of Rs. 4 cr.
• 4 customers and 2 partners
• Strong technical team and
strong sales/BD person
• Strong advisory board
• Neat prototype
• 2 strong trials
• 2 solid technical founders
• Neat idea
• Hot market (potentially)

26. KEY PROPOSITION
What is the size of the addressable market?
What is the need/ pain that the product/ service seeks to
address?
What are the current solutions(services, products) available?
What is/are unique about the offerings of the company?
How does the product/ service help the customer solve his
problem/ address his need/ satisfy his demand?
How does it do so in a faster/ more efficient/ more economic
way?

27. GLOBAL AWARDS
REGIONAL AWARDS
FOREIGN COUNTRY-GOVTS.
GOI–MINS., DEPTT.S, SCHEMES
GRANTS
PRIZES,AWARDS GRANTS LOANS SUBSIDIES
PARTNER
PROGRAM
S
Social Venture A DISTRIBUTORS
NGO L
NGO DISTRIBUTORS BUYERS
E
S

28. PUBLIC-FUNDING BACKED VC INSTITUTIONS:
1. SIDBI
2. Ventureast(APIDC)
PRIVATE VC FUNDS/ CATALYSTS:
3. Aavishkar India Micro Venture Fund
4. Acumen Fund
5. Asia Venture Philanthropy Network
6. Omidyar Network
7. New Philanthropy Capital
8. Ennovent
9. The European Venture Philanthropy Association(EVPA)
10. Social Venture Partners, Seattle
11. Nonprofit Enterprise and Self-sustainability Team (NESsT)

29. PRIVATE SECTOR ENTITIES
12. Corporates(as part of CSR portfolio)
13. Mahindra Group: www.sparktherise
INTERNATIONAL AGENCIES
14. USAID

30. INTERNATIONAL PRIVATE ENDOWMENTS
15. The Ford Foundation
16. The Dennis & Phyllis Washington Foundation
17. The Bill & Melinda Gates Foundation
18. Fractal Foundation
19. The Calvert Social Investment Foundation
20. The Lemelson Foundation
21. Permira & Community Action Network
22. Impetus Trust
23. PhiTrust Partners
24. Social Impact
25. UnLtd

31. ASHOKA INDIA – INVESTING IN NEW SOLUTIONS FOR OUR WORLD’S
TOUGHEST PROBLEMS

33. 1. They have invested significant amount of time and/or
money
2. It is not an idle pursuit

36. RISK MITIGATION
1. Has technology risk been significantly reduced or
eliminated?
2. Have market risks been adequately addressed?
3. What is the team composition? How has execution
risk been addressed?

37. 1. Great, Looks like a “Ready-to-go” Plan
(In other words): “Please call me next Monday and we
can confirm a date when you can visit our office and
meet the other team-members. We’re definitely on!”)
2. Very Good, But Needs some more preparation
(In other words- “Please do a little more home-work and
revise your document ; then email/ call me whenever
you’re ready(can be 2-4 weeks) and we can fix a date
when you can visit our office maybe and meet the other
team-members. We’re on… if…. Not sure now…!”)
… continued

38. 3. Yes, But Can collaborate/co-invest with other
Investors/ Funders
(In other words: “Please let us know when you have
found someone/ anyone showing interest in investing
and then we will talk to you/ meet you again”)
4. Well, you seem to have put in a lot of effort there-Let’s
stay in touch, email us after 6 months and let’s
discuss this at that time
(In other words: “It’s been nice meeting you… Please
look elsewhere… Please don’t expect us to waste any
more of our precious time on your idea”)

40. 1. Failure Increases Chances Of Success
2. VCs Really Do Invest In The People
3. Serial Entrepreneurs More Likely To Raise Funding
4. First-Timers and Non-Successes Benefit More From VC
Expertise
5. Better VCs Provide Better Deals
6. Serial Entrepreneurs Get Better Terms