NEN Online - Entrepreneur Resources, Entrepreneurship Education
FAQ Careers Contact Us
Monday Aug 30 2010
NEN 360 NEN Videos Events KNOWLEDGE BANK
THE RESOURCE FOR NEW & FUTURE ENTREPRENEURS
Welcome Guest Register / Login Share This Link
About NEN
NEN Programs
NEN Team
NEN Members »
Press Room
NEN COMMUNITY
NEN 360
Events »
Blog
Pictures
News
CBFW-NEN Fellows
Join/create a group
ENTREPRENEURS
Business Idea
In the Lead
Straight Talk
Startup Profiles
Expert Speak »
Apply to Incubators
Apply for Angel Funding
Mentoring Program
KNOWLEDGE BANK
Idea & Opportunity
Faculty Development
Angel Investing
Venture Capital
Beginner's Basics »
Learning Tools »
NEN Videos
Videos from the Web
WebWire
Gurukul
Contact List
Brain Teasers
Stories
Home NEN Scoop
Straight talk > Back a 1st time entrepreneur?
Would you back a first time entrepreneur?
NEN asked its VC Experts: would you back a first time entrepreneur? Under what circumstances? it turns out there's good news out there for first-timers.
Hear direct from the VCs- would they back a first-time entrepreneur?
> Balaji Srinivas, Aureos Capital
> Avnish Bajaj, Matrix Partners
> Alok Mittal, Canaan Partners
Balaji Srinivas, Aureos Capital
Balaji SrinivasI would back a first time entrepreneur. But today my first time entrepreneurs are different: they have substantial experience.

They are not figuring out their businesses; they are figuring our whether their company will succeed, because they know their business.

I'm not willing to live with the other option, which is: I don't know what I'm doing but I will figure it out. That is not acceptable to me.

Today what is acceptable to me is: I know my business and I have done this for X number of years, and now I have this idea which is the extension of this business. I don't know whether it will work or not, but I know the big picture, and I know that I have all the elements. This is what I back today.

Back to top
Alok Mittal, Canaan Partners
Alok Mittal40% of our business in the US comes from repeat entrepreneurs. People who have worked with us before like the experience. This implies that the larger part comes from people who are first time entrepreneurs.

And we're very open to backing first time entrepreneurs in the Indian context. Here you see more first time entrepreneurs than in the West simply because the whole model of building a fast-growing enterprise and then exiting is fairly new.

Avnish Bajaj, Matrix Partners:
Avnish BajajI was a first time entrepreneur when I got funded by ChrysCapital. I don't think the issue is first time entrepreneurs. In fact, if you look at some of the world's most successful entrepreneurs, they are all first time entrepreneurs: Bill Gates, Steve Jobs, Larry Ellison.

Indeed, if you look at the track records of entrepreneurs who have succeeded in their first venture, they typically don't succeed after that.

In four Interactive, we backed two people and a business plan. One of those guys has been an entrepreneur before, but the other guy hasn't. The guy who has been an entrepreneur before, started his company in 99-2000 and didn't have a great experience, because by that time the bubble burst.

But we felt that they really knew what they were going to be doing about the market opportunity, so we backed them.

So yes, absolutely we would look to back first time entrepreneurs. I think it comes back to whether they have a track record of achievement in their lives. It doesn't have to be as an entrepreneur.

NOTE: Some of the comments may have been edited for clarity, without changing emphasis or meaning.
MORE STRAIGHT TALKS
What are VCs really looking for?
Venture capitalists fund 1 out of 300 proposals, on average. Slim odds. Find out what they really look for in a business. >Read more
Writing a Business Plan: waste of time?
VC Experts tell us about the importance of business plans. We were surprised by the sharply different views. >Read more
Is the highest price always the best price?
VC Experts share the secrets of a "good deal" - from the entrepreneur's perspective. >Read more
Back to top
  
AdditionaL Resources
> VC business model
> 5 VCs talk about their marriages
> Feature story: The artist and the entrepreneur
> ST: Criticism: Ignore it? Ban it? Or fight it?
> What do VCs look for?
> Biz plans-waste of time?
> Back a 1st time entrepreneur?
LiST OF VC's
A comprehensive database of VCs- where to find them and where they invest.
> Private - Indian funds (33)
> Private - Global funds (25)
> Government funds (23)
> Banks (11)
Login
Email ID
Password
  
Forgot password?
Join now for full access!
Apply for Incubation
NEN provides you easy access to India's top business incubators. Use the submission format to apply online.
> Apply for incubation
NEN & Indian Angel Network
NEN & Indian Angel Network bring you access to India’s largest network of angel investors.
> Apply for seed funding
Mentoring Program 2010
 
Our Knowledge Partners
Venture Capital
Venture Capital
Wadhwani Foundation
© 2009 National Entrepreneurship Network. All rights reserved.
About NEN Press Room FAQ's Jobs at NEN Feedback Contact Us
Powered by WIZTech