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  • Posted: Wed, Sep 3 2008. 12:12 AM IST

Startup challenges

Although all new startups face challenges, those in India could be alleviated with a little help from fellow entrepreneurs and some government support

Vaishali Jain

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New Delhi: Shweta Gupta quit her job at an online advertising firm last year to pursue her dream of starting her own company. Last August, she started Criticat.com, an online platform that provides inside information on companies. One year down the road, she’s learned a lot, but she feels she could have done better. Shweta says there is a lot lacking in terms of mentorship and professionalism in the start up world in India, especially for women, citing that it’s hard to tell when people take her seriously.
Although all new startups face challenges, those in India could be alleviated with a little help from fellow entrepreneurs and some government support. Venture Capital funding was close to 1 billion dollars last year, but the bulk of the capital has gone to more established companies.
Startups are still having a hard time attracting that kind of money. The founders of Routeguru.com, an online mapping and directions site, put 100% of their savings into starting the company 2 years ago but when they approached angel and VC investors, they were turned down. In the absence of funding and government support startups are soldiering on, but fretting about not being able to scale up their businesses.
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Vijay Said:


Dear Vaishali, My comment in no way tries to belittle the organizations mentioned in the article or the author. However the tone of the article suggests that enterpreneurs quitting their fulltime jobs or pooling in all their savings automatically qualifies them for receiving VC funding. Unfortunately last I checked, Venture Capital was a type of business and not philanthropy. Thanks & Regards, Vijay

Posted On 9/19/2008 4:37:16 PM
Re: Vaishali Said:


Vijay, Thanks for your feedback. You're most definitely correct. Venture Capital is a business. The entrepreneurs were just conveying the hardships they have faced in starting businesses. Raising funding is just one of the challenges they have faced. Mentorship and government resources for small businesses were a few others. Funding a business should never be philanthropic effort. Nor are individuals or groups of individuals entitled to funding only because they have quit their day jobs. However, technology product companies are facing tougher times than their counterparts in other parts of the world. I believe this is what the entrepreneurs were trying to convey. Thanks for the feedback, Vaishali

Posted On 10/21/2008 1:42:24 PM
umesh Said:


hi vaishali you have raised an emerging issue as i am also trying to start my own firm but its getting very tough as there's no proper guidance and mentorship and very less govt initiative....but there are some like NEN and EUREKA who help budding entrepreneurs

Posted On 10/21/2008 12:14:24 AM
Re: Vaishali Said:


Umesh, Thanks for the resources. I'm sure many entrepreneurs will find them useful. In terms of mentorship, there are some organizations like TIE that could help and then there are also community events like BarCamp Delhi where you might be able to find some mentors. Good luck with your business! Best, Vaishali

Posted On 10/21/2008 1:55:53 PM
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