Comments on: Wanted: VCs for a Flat World http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/ Meandering Musings on Globalization Wed, 09 May 2012 17:39:30 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: V.Thiyagarajan http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-7446 V.Thiyagarajan Sat, 01 Sep 2007 10:59:37 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-7446 Basab, I cannot agree with you more. The gaps are very high in terms of US VC's investing in India and challenges are much more. The way the business and cost structures work in India are much different compared to US. Here the flat world way will help narrow this gap. V.Thiyagarajan Basab, I cannot agree with you more. The gaps are very high in terms of US VC’s investing in India and challenges are much more. The way the business and cost structures work in India are much different compared to US. Here the flat world way will help narrow this gap. V.Thiyagarajan

]]> By: Dr. Shankara Prasad http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-6412 Dr. Shankara Prasad Mon, 28 May 2007 07:11:04 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-6412 I agree with all of your statements. Indian VC's are ready to invest in companies who have positive cash flow, and who are ready to go IPO. Our company has spent more than a million dollars in developing a ERP product for a hot vertical (e-governance vertical), and has customers who have paid, and many others waiting; But VC's in India are NOT willing to take the risk of putting money into this space. The potential market is big not just in India but also in other Commonwealth countries. I am looking for VC's who are interested social enterpreneurship. Do spread the word. I agree with all of your statements. Indian VC’s are ready to invest in companies who have positive cash flow, and who are ready to go IPO.

Our company has spent more than a million dollars in developing a ERP product for a hot vertical (e-governance vertical), and has customers who have paid, and many others waiting; But VC’s in India are NOT willing to take the risk of putting money into this space.

The potential market is big not just in India but also in other Commonwealth countries.

I am looking for VC’s who are interested social enterpreneurship. Do spread the word.

]]> By: Shantanu Bhagwat http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-5451 Shantanu Bhagwat Wed, 07 Feb 2007 10:16:21 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-5451 Thought provoking post Basab...I have commented on it here: http://global-themes.com/finding-flat-world-vcs/ Thought provoking post Basab…I have commented on it here:
http://global-themes.com/finding-flat-world-vcs/

]]> By: deepak http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-5344 deepak Sat, 27 Jan 2007 14:11:19 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-5344 From what I have heard from Michael J. Scown, at a recent luncheon at my university and further discussing with him, I found that most of the venture capital firms in Asia including Intel capital are not truly “venture” capital. (and my esteem VC&PE professor who previously worked for Hutchison Whampoa, and AIG supports this argument). Most of the VC firms in Asia never fund a seed venture. e.g guruji.com or an youtube.com at inception. Most to the VC firms enter companies which are up and running with substantial revenues and enter at a pre-ipo stage or a pre-buyout stage. I know every VC firm has its own rationale but I really wonder, will this help the spirit of entrepreneurship in the developing economies like China/India. I personally know a friend who left a lucrative job to start his own venture in virtual reality, and has been hunting for VCs for a long-time. He had an initial funding from DRDO and then from an US venture capitalist, but never from an Indian VC firm. From what I have heard from Michael J. Scown, at a recent luncheon at my university and further discussing with him,

I found that most of the venture capital firms in Asia including Intel capital are not truly “venture” capital. (and my esteem VC&PE professor who previously worked for Hutchison Whampoa, and AIG supports this argument).

Most of the VC firms in Asia never fund a seed venture. e.g guruji.com or an youtube.com at inception.
Most to the VC firms enter companies which are up and running with substantial revenues and enter at a pre-ipo stage or a pre-buyout stage.

I know every VC firm has its own rationale but I really wonder, will this help the spirit of entrepreneurship in the developing economies like China/India.

I personally know a friend who left a lucrative job to start his own venture in virtual reality, and has been hunting for VCs for a long-time.

He had an initial funding from DRDO and then from an US venture capitalist, but never from an Indian VC firm.

]]> By: pushpa http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-4869 pushpa Wed, 10 Jan 2007 15:10:02 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-4869 To add to sudhir's point, i've heard the intelcapital head Michael.J.Scown speak.He pins up all his hopes on asia and to my dismay i see very little spoken about India. While i got in touch with him , he was pretty rhetoric as he mentioned that most VC's hover around university campuses as they are the hubs of exciting work and India has a long way to catch up. Vietnam and Indonesia is where I-cap is looking at. To add to sudhir’s point, i’ve heard the intelcapital head Michael.J.Scown speak.He pins up all his hopes on asia and to my dismay i see very little spoken about India. While i got in touch with him , he was pretty rhetoric as he mentioned that most VC’s hover around university campuses as they are the hubs of exciting work and India has a long way to catch up. Vietnam and Indonesia is where I-cap is looking at.

]]> By: Krish http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-4826 Krish Sun, 31 Dec 2006 15:04:15 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-4826 Basab, you've rightly arrived at the solution of flatworlding VCs to suit Indian entrepreneurial ecosystem. I think the biggest problem with Indian startups today is lack of quality skillsets. You are bang on when you say "the small Indian domestic tech market which seems to be getting more press than it deserves". Very well said. Training can be a solution to some extent, but where it comes high end areas like multi-strategy quant fund derivatives, there's only so much you can train. Would you train them on the financial products, asset class itself or quant techniques...? It calls for intensive application of a brilliant mind to capture the scenarios and deliver. Best way I think is to hobnob with the domain experts in the developed world who've already done seminal work in the space. You can atleast have access to their market access, router libraries and feeds to familiarise yourself with the real challenge and dynamics in designing and execution of classic algorithmic trading solutions. Basab, you’ve rightly arrived at the solution of flatworlding VCs to suit Indian entrepreneurial ecosystem. I think the biggest problem with Indian startups today is lack of quality skillsets. You are bang on when you say “the small Indian domestic tech market which seems to be getting more press than it deserves”. Very well said.

Training can be a solution to some extent, but where it comes high end areas like multi-strategy quant fund derivatives, there’s only so much you can train. Would you train them on the financial products, asset class itself or quant techniques…? It calls for intensive application of a brilliant mind to capture the scenarios and deliver.

Best way I think is to hobnob with the domain experts in the developed world who’ve already done seminal work in the space. You can atleast have access to their market access, router libraries and feeds to familiarise yourself with the real challenge and dynamics in designing and execution of classic algorithmic trading solutions.

]]> By: Rupam http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-4822 Rupam Thu, 28 Dec 2006 05:25:12 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-4822 Basab, maybe they should seriously look at the business model of T-Zero.They are doin some great stuff with Bloomberg together. 1)Thats what the market really wants in CDOs or swaps. 2)Your friends need a carrier to relay the processed data.These carriers will generally (for now) be the big boys (bloomberg & co). Hedge funds do have a limit to screening, thereby they do check out Biggies to analyse credit post trades. 3)Plain Vanilla Credit processing might not work, they need to work on the ITRAXX trades and then talk to guys like thomson financials, Reuters or Bloomberg to relay their processed analytics.Lets say initializing it by posting it through Reuters DTC, Bangalore.Thereafter overseas VC infusion should not be a big problem. I guess it wont be that easy taking on thomson/Bloo/RTR without first riding on their networks, making a presence and then later going independent. Best regards Rupam (ex product specialist, Reuters Germany) (ex project manager, Reuters India) e-mail:mishra.rupam@gmail.com Basab,
maybe they should seriously look at the business model of T-Zero.They are doin some great stuff with Bloomberg together.
1)Thats what the market really wants in CDOs or swaps.
2)Your friends need a carrier to relay the processed data.These carriers will generally (for now) be the big boys (bloomberg & co). Hedge funds do have a limit to screening, thereby they do check out Biggies to analyse credit post trades.
3)Plain Vanilla Credit processing might not work, they need to work on the ITRAXX trades and then talk to guys like thomson financials, Reuters or Bloomberg to relay their processed analytics.Lets say initializing it by posting it through Reuters DTC, Bangalore.Thereafter overseas VC infusion should not be a big problem.
I guess it wont be that easy taking on thomson/Bloo/RTR without first riding on their networks, making a presence and then later going independent.
Best regards
Rupam
(ex product specialist, Reuters Germany)
(ex project manager, Reuters India)
e-mail:mishra.rupam@gmail.com

]]> By: Sunil Nikhar http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-4051 Sunil Nikhar Mon, 25 Dec 2006 07:21:47 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-4051 Hi Basab, Thanks for the ref. Sudhir - We have developed a derivatives portfolio risk management platform that provides front office for deal pricing and deal capture, mid-office for risk analysis,hedging strategies and back-office for settlement, compliance and acctg. The product is already rolled out at UTI Bank in Mumbai. We are also, planning to work on KPO for the derivative and treasury dept of banks and hedge fund administrators as we have the necessary systems that can be used for this and also we have the trained resources which can be deployed to get the KPO off the ground. Since its difficult to get experienced derivatives professionals, we have developed a 3 months training program wherein we can get a smart candidate and get him ready with required knowledge in derivatives. We are based in Pune and my contact is 98508-18497. Thanks Sunil Nikhar Hi Basab,

Thanks for the ref.
Sudhir – We have developed a derivatives portfolio risk management platform that provides front office for deal pricing and deal capture, mid-office for risk analysis,hedging strategies and back-office for settlement, compliance and acctg. The product is already rolled out at UTI Bank in Mumbai. We are also, planning to work on KPO for the derivative and treasury dept of banks and hedge fund administrators as we have the necessary systems that can be used for this and also we have the trained resources which can be deployed to get the KPO off the ground. Since its difficult to get experienced derivatives professionals, we have developed a 3 months training program wherein we can get a smart candidate and get him ready with required knowledge in derivatives.

We are based in Pune and my contact is 98508-18497.
Thanks
Sunil Nikhar

]]> By: Basab http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-2590 Basab Fri, 22 Dec 2006 23:31:29 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-2590 Sudheer, I think your structure at Intel Cap makes a lot of sense. And I'll let my friends know. Sudheer,

I think your structure at Intel Cap makes a lot of sense. And I’ll let my friends know.

]]> By: Sudheer Kuppam http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/comment-page-1/#comment-2385 Sudheer Kuppam Fri, 22 Dec 2006 16:03:48 +0000 http://6ampacific.com/2006/12/13/wanted-vcs-for-a-flat-world/#comment-2385 Basab: We have an organization that has already flatworlded itself. (I have decided to support your creativity. :-)). Its Intel Capital and I work for that firm. We always have sector specialists in the US who work closely with our biz units and have Geo specialists outside US that have local expertise in their respective countries. The US partner works closely with the Geo partner in evaluation and closure of an investment. We recently invested in the World's first "engineering services" company in India - Vignani. As usual Vignani's customers are outside India and are well known to our US sector specialists. Hence customer introductions happen in a jiffy due to our US rolodex. We also have ITDs (Intel Technology Days) in most of the countries we operate in and try to bring our diversified international portfolio to the local blue chips & OEMs. One of our recent success stories involved an Israeli company partnering with Satyam in India which according to the Israeli CEO would have never happened if not for our efforts. Perhaps, we could help your IIM-A friends launch the hedge fund derivatives processing platform company. How about an intro? I can be reached at sudheer.k.kuppam@intel.com. Basab:
We have an organization that has already flatworlded itself. (I have decided to support your creativity. :-) ).
Its Intel Capital and I work for that firm. We always have sector specialists in the US who work closely with our biz units and have Geo specialists outside US that have local expertise in their respective countries. The US partner works closely with the Geo partner in evaluation and closure of an investment. We recently invested in the World’s first “engineering services” company in India – Vignani. As usual Vignani’s customers are outside India and are well known to our US sector specialists. Hence customer introductions happen in a jiffy due to our US rolodex.
We also have ITDs (Intel Technology Days) in most of the countries we operate in and try to bring our diversified international portfolio to the local blue chips & OEMs. One of our recent success stories involved an Israeli company partnering with Satyam in India which according to the Israeli CEO would have never happened if not for our efforts.
Perhaps, we could help your IIM-A friends launch the hedge fund derivatives processing platform company. How about an intro? I can be reached at sudheer.k.kuppam@intel.com.

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