| Pradeep Gupta was in his mid-twenties, and he believed he had a great idea - a magazine for the computer industry. But he faced challenges: it was 1982, a pre-PC world, so a computer magazine was not an obvious need; and Pradeep didn't have the money to get going.
Raising those first funds: a common problem for new entrepreneurs. To start Cyber Media, Pradeep found a two-part solution.
First, he tapped into his existing supporters. "Back in 1980 I had started a software company. Four of us put in the money for that. This is the way a whole lot of young businesses start: three or four people get together, put in some money," explained Pradeep.
In Pradeep's case, he had talked through the idea for the software company with a former professor at IIM Calcutta, whose response was, "Oh good, if you want to start, I'll put in the money." The professor brought in one of his friends, Pradeep brought in a friend, and the money was raised.
"Within 2 years that company was sort of working out well, and when I thought of the publication, my professor again put in some money," says Pradeep.
But there remained a gap - even after the professor, Pradeep, and Pradeep's family invested.
That's when Pradeep turned, if not to the public, at least to all his friends. "I actually took small small amounts of money from a whole lot of people." Pradeep raised Rs. 2000 - Rs. 5000 at a time. "In fact, I started with only owning about 20% of the company," Pradeep admitted.
There's always a way to get going, believes Pradeep. "If you have the passion, you have the idea, if you believe in it, you should be able to convince people who have faith in you. And you bootstrap, you start down scale and keep on building up."
Pradeep is the founder and Chairman, Cyber Media, a founding member of the Indian Angel Network, and an NEN Contributing Expert.
Established in 1982, Cyber Media (India) Limited is India's largest specialty media house, with 15 magazines in the infotech, telecom, consumer electronics and biotech areas; and an end-to-end media value chain including the internet, events and television. www.cybermedia.co.in
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