Agile Ahmedabad 22-23rd Nov 2024 | How and Where to Startup a StartUp? Idea to a Unicorn by Archit Somani
- 1. How and Where to Startup a StartUp? Idea to a Unicorn Agile Ahmedabad 2024 By Dr. Archit Somani www.agileahmedabad.com
- 2. TraCoMo Automation and Camera System Pvt. Ltd. 2017 - 2024 World’s Top Fortune 50 Companies are our clients 2020 JETRO Japan recommends us for Top Asian Entrepreneur Award 2018 Indian Govt. send us to World Economic Forum to represent India in AI/IoT 2019 World Economic Forum Recognized us TOP 90 Disruptive Technology Companies of India 2017 Started TraCoMo with vision of Being Most Disruptive Computer Vision Company & Automation Company of World 2022 Microsoft Recognizes us as Top 100 Unicorns of World in making 6 1 2 3 4 5 www.agileahmedabad.com
- 3. Case Study : Space & Defense StartUp •Low flying rockets upto 30kms •Alterantive to Drones •Very promising future and need for Indian Defence & Space Exploration •Substancial Capital Requirement •Limited Testing Facilities for Spare Parts •Single Client i.e. Govt. of India (Defence exports are highly regularized) •Robust and Constant Supplier needed : HAL Tejas - GE Engines •Needs very long time to grow and then growth will be exponential www.agileahmedabad.com
- 4. Case Study : EV Bike StartUp •Product in hand from last 6 years •Multiple testing done and found successful •Initial demand is there but customers want fast delivery •Production needs Huge Capital Requirement •Distribution is Key but making Distribution Channel is trickiest part •Quick Servicing and spare part availability is very important •TVS Bikes don’t produce even a single part, but is biggest bike manufacturer of India www.agileahmedabad.com
- 5. Case Study : AI Camera’s & Security StartUp •Fast product development based on Blackbox Yolo Models No proprietory Algorithms •Huge Demand but Customers don’t understand AI •Costly Hardware + Limited Supply (For Edge Based Products) •SAAS Based product is easy to implement •Initial Capital lost in Sales & Demos •Exporting Software is easy (PESTLE) •Service Intensive & Strong Cash Flow required www.agileahmedabad.com
- 6. Turnover Game : Grocery StartUp •Joa baccha jeb mei wahi saccha bhagwan, baaki sab Ram Ram •Thin Margin Business vs Sudo Revenue vs Real Revenue (Europe & US) •Hard times dryup the cash flow •Big Players buy in bulk at Dirt Cheap, Sell in Bulk at Dirt Cheap •Limited or no innovation or easy to copy innovation needs superfast implementation or market is captured by Deep Pockets •Multiple Breakdown points limit probability of success •We supply famous items from Across India, next month 3 such startups, next month 9 such startups www.agileahmedabad.com
- 7. Government Schemes •StartUp Gujarat : 42 Lakhs in Grant •StartUp India : 20 Lakhs (Grant) + 70 Lakhs (Debt at SLR - 4%) •Nidhi Prayas : 10 Lakhs •Over 47 Departments Giving Funds •Tax SOP’s •EMD and other requirements abolished for StartUp’s •Women led StartUp’s get more benefits •Govt. focus is on Revenue Generation or Employement Generation www.agileahmedabad.com
- 8. Funding Challenges •India follows : Pehla Aap, fir hum.. •Established Product with Fit-to-Market and Growth Stage StartUps only •Idea’s toa Hazaro Mujhe bhi aate hain •World’s best cusinine in Desi Tadka Style is acceptable •Big money is only from VC’s as, Angle’s & Seed Capital have limited understanding of SME IPO, or Exit Plans and become Greedy later on •Turnover is considered supreme, Quality, Sustenance, Business Model •Money is invested only on Founder & Co-Founder, baaki sab dhua dhua hai
- 9. Mitigating Funding Challenges •Friends, Family and Fools Model •Investor needs to be cautioned about 10 years investment horizon •Find Like minded investors, not deep pocket investors •Bootstraping Model is best -> Look for Grants -> Low Interest Unsecured Debt from Govt. •Success will come if -> Revenue is Fixed, Variable, R&D •Big shows will make you famous, but your business model can be easily copied •Investor profile, in depth study is important -> Generally Investors want to just strengthen current investments by knowing competitor business models www.agileahmedabad.com
- 10. Entrepreneur by Heart •Business is Definitely not : Chotta Hai, but Potta nu Chhei •Trading is limited scope business •Innovation and R&D is the only Boat •Survival is the key in initial 10 years •Think bootstrapping •In India, established products sell, not Ideas www.agileahmedabad.com
- 11. When to StartUp •Nothing better than today : First Enterants are always remembered •To much study and no action, will result in Lifestime Regret •Stay Hungry, Stay Foolish, Make Mistakes, Learn Fast : Everything that happens is a part of puzzle (Will make sense only when whole puzzle is solved) : Slum Dog Millionaire •No same reciepe works for all : You need to make your own potion •Money is a bye-product •Investments don’t start well known businesses but being different, unique and dream to take world to next level defines success •StartUp Ecosystem is maturing and Turnover will be small factor in valuation www.agileahmedabad.com
- 12. Key TakeAways Capital Lighter Capital Oriented StartUp’s have low risk, faster growth & investor comfort Perception Different geographies will have different perception towards StartUp, Funding, etc. Turnover Game has to be Good Margin and Good Profit, Turnover is Dangerous Path and is Financialy Flawed Metrice for StartUp Service Service Intesiveness has to be balanced as it is a barrier to growth & Brand Equity Pivot Find your Pivot Faster, as this is what takes 10-15 years for StartUp’s.. Be flexible, keep trying Market Single customer doesn’t ensures business, target market is very important 6 1 2 3 4 5 www.agileahmedabad.com