All posts by Mukund Mohan

My discipline will beat your intellect

Entrepreneurs keep you young – at heart and the mind

Day after batch 1 finished their demo day resulted in some serious withdrawal symptoms for us at the Accelerator. It is not hard to imagine that having 45+ enthusiastic, energized and talented people will have a significant effect on your ability to stay young.

I learned from Rajesh and Prajwal at Amplyfy that everything can be hacked in under 12 hours. They’d scoff at the “develop it over the weekend” concept. “You don’t need an entire weekend” was their premise. Any idea I’d put forth would result in a 15 min “technical feasibility” discussion, which would result in a < 12 hour solution. It was done, not just discussed. Naresh would use every contact in his address book to get a meeting with any customer he desired. Keval just kept them all calm. While the others would hack, Keval would focus on the scale. Big things are destined for this team.

Melchi and Aditya from CloudInfra would start any project with a “lets solve the underlying problem” – usually that meant a mathematical formula which would have to be solved: to get anything from customer traction and SEO to lead generation and product roadmap. Aditya had the unique ability to also hack and make solutions for every problem we had. In fact he was the only one who helped us with a unique solution to our intermittent wifi issues. He actually put his own router in place.

Jiten from Ciphergraph was always on the move. Aggressive timelines were made even more aggressive with him. He has the unique ability to breakup a 1 hour meeting into a 11 minute product roadmap discussion, a 15 minute investor deck rant and a 19 minute sales pitch review.

Healthify taught me how I should build and hire awesome people and keep them engaged. They had the youngest team in the entire batch and still managed to get loads of stuff done right. They ate lunch every afternoon as a team, worked out together as a team and even sang as a team.

Prafull and Piplayan, founders of Hire Rabbit, are the masters of doing awesome with very little money. The ultimate bootstrappers, they got mentioned in all the top blogs and reviewed by many influencers with a shoestring budget and chutzpah. Most of their marketing was very high quality and I’d expect them to have paid significant sums of money for it, but they would end up telling me it cost them < Rs. 5000 by leveraging resources on Odesk.com

The NowFloats team were masters at execution with measured planning. Give them any system and they’d know how to work it. They used the customer and partner development effort and resources the best and had the best traction to prove it as well. They were best at figuring out how to get anything done in a system that prefers the status quo.

Nandan from Gameizon is the most patient and passionate person I worked with in this batch. He taught me more about how passion for solving a problem will help you focus on not giving up. Even though he had many hurdles ahead of him, the fact that he loved the game of cricket and wanted to solve a real problem that exists with gaming and cricket made him the most endearing.

Pratyush is the master of hustle. Having been through this problem before, PlusTxt was his second attempt to solve the problems that were prevalent with messaging the last time he did this. Thanks to his ability to strike up a conversation fairly easily with most people, he knows anyone and everyone in the ecosystem. Some days I’d get a sense that even if he did not have a product he’d get thousands of downloads based on his ability to hustle.

Deba and Kapil of Sparsha kept it simple. They are the best listeners of any of the folks I know. They taught me active listening, the ability to keep asking questions for which I rarely had good answers. They were also the most humble people I know. They had the most going for them of all the companies, but kept focusing on what they still needed to do.

Vinny and Devesh taught me that its always better to be in it to enjoy the game. Whiteshark faced more hurdles and opposition to their idea than anyone else did in the batch. They pivoted, changed, modified and kept going. They just loved the game that startups offered to founders. They’d be found in the accelerator until 5 pm DAILY brainstorming, talking, thinking and developing.

Bhaskar of World Without met taught me to take everything in my stride. Ever smiling, even when things were not peachy, he could be summarized in one sentence “this too shall pass”. Product has blocking bug, lets fix it by tomorrow, this too shall pass. Investor was more interested in B2B not B2C companies, no problems, lets talk to the next investor, this too shall pass.

I am more convinced that there is a serious need for awesome coworking space in India where such excellent teams could work together and make everyone around them younger.

How to get to 1000 startups in India ever year

I will be on a panel with several others at the IAMAI conference next week for the India Digital Summit and the discussion is about how to make 1000 digital startups happen annually in India.

I thought I’d put some thoughts together and get some opinions before I present at the panel.

Currently there are less than half that number of product companies being started each year.

There are various issues across the funnel, but I’ll focus on the #1 issue, which I believe is at the top of the funnel.

Great product entrepreneurs starting great companies.

I wanted to pick a specific example from our accelerator: two of the most amazing hackers and geeks I have worked with – Melchi and Aditya co-founded Cloud Infra after 6 years at Google here in India, building high quality products.

I would fund them just given their background and the quality of hackers they are. Regardless of what they are developing.

Anyplace else (Valley) they would have been funded first and then they would have been asked questions. I worked with them for 4 months.They are amazing.

India needs more of them to increase the number of startups from 500 to 1000.

Unfortunately that’s not happening and is not going to happen.

I may get a lot of brickbats for this statement, but:

I believe the best product entrepreneurs should have built & shipped a world-class product before they start a company.

If you have worked in a services company it does not count. Period.

There are very few software product companies in India – in fact fewer than 20 are really good. Of those 20, many, including Google, are cutting back on hiring and investing in India.

That’s just awful.

Yahoo, Zoho & InMobi in particular have contributed a LOT to the product startup ecosystem in India, given how many good developers they have helped groom.

If you worked at any of these product software companies a few years ago, then you are a candidate for a high quality product startup in India.

Granted, a small number of these folks are actually starting companies, but that can be fixed.

The trouble is there are not too many of them in the first place.

And the bigger issue is that the Google’s and Facebook’s of the world are preferring to hire more folks in the valley.

In fact many of the top IIT graduates who get jobs at Google and Facebook are moving to the valley. 2 years ago they’d be working here in India.

To get 1000+ digital startups each year in India, we have to work on making sure world-class digital software companies hire more of our top people here in India.

I dont think tax breaks will provide them any more incentive to hire here.

I also believe there are enough quality folks here in India they can hire.

I’d love some ideas on what will make them hire more people of high caliber in India and keep them here. I’d love to see them not cut back on hiring in India.

What are your ideas on how we can get these companies to hire great engineering talent in India?

Trakdot Luggage Tracker – the best CES gadget

TrackDot
TrackDot

Phones, Televisions, Tablets and Watches were on display at the CES in Las Vegas, but one device which I have been tracking for a few months is TrackDot.

It is a little big, but totally awesome device that helps you track your checked-in baggage.

I rarely check in bags when I am travelling on business, but with 4 kids its hard for us to not check-in bags on vacations.

So far we have not yet lost our bags, but a couple of times my bags have arrived ” a day late” which is a major inconvenience during vacations.

TrackDot will track your baggage an let your smartphone know where your baggage is.

You put it in your bag and it sends a signal to your app on the phone so you can know exactly where it is.

It is in its version 1, so there are many limitations:

1. Its big. If fitbit can be made as small as it is, I guess TrackDot can be too. I am waiting for the next version to be smaller than my fitbit so I can conceal it in my bags.

2. It can only detect your luggage when its closer than 30 meters of your smartphone – that’s lame.

3. At $50 onetime fee, $9 one time setup and $12 annual fee, its a tad on the expensive side, for the value it provides.

4. It needs 2 AA batteries to operate. Also lame.

Ideally I’d like it to be small enough so it can be stitched into the bag / luggage. If it were offered at $25 one time purchase for the device and $10 per year for tracking upto 1 Km, that would be all we need.

Another feature I’d really like is to understand where it was last located. That will really help understand where it was possibly lost. And if it does have tracking send ability why not have it send  its location to a server where it could be located on my app on the phone.

Bag in Fargo, you in New York, but you’d still know it was in Fargo last!

An Indian entrepreneur & investors guide to giving a sincere compliment

This is not a set of rules, but a guide for Indians in particular. Most of us are pretty awful when it comes to giving a compliment. I am not ready to psychoanalyze why that is the case. The usual suspects come up: our culture, our values, blah, blah, blah.

If you see something that’s good or someone that’s done a good job, just say it already.

This is especially true of engineers and developers. Something about the “I should not say this is very good else they will take advantage of me” is absolute bullsh*t.

I make exceptions for women. In this case alone, because almost anything they say is construed “I like this” in *that* way.

The worst are the guys who give back-handed compliments, thinking they are actually being nice. No, you are not. You are being a doofus.

Lets start with some examples.

1. You finish a meeting with an entrepreneur who is doing something new and innovative. Dont say “I tried this 2 years ago and it did not work, but your solution might”, when you intend to say “That’s a pretty neat idea and a new take on a problem I know exists”

2. Someone finishes their demo and they gave a very good pitch. Dont come to them and say “I thought I was the best at giving demos and now I know I can learn from you”, when you intend to say “You did an awesome demo. It was crisp and compelling. There’s a lot to learn from how you present.”

3. You meet an investor who has given you time to pitch, even though they, like you, are very busy. At the end of the meeting you got 2-3 good inputs from them and thought they understood the problem you are solving and what your solution does, even though they wont invest. Dont say “I met many investors, but you got what we are doing, unlike others who did not get it”, instead say “Thanks for taking the time to understand my solution. Its hard to understand it quickly and I am glad you got it quickly”.

What are the 3 guidelines I propose for giving a good compliment:.

1. Be sincere and genuine. If you liked it say you liked it. If you liked it a lot, dont say it was okay because you think it will give them a ego boost if you express “fandom” . Dont compare it to other things unless asked to do so. I understand the whole “frame of reference” and relative bit, but give people credit when its due.

2. Try not to use cliches. This is hard not to do, but pick up on one really standout part of the interaction and give them a compliment on that part. Their delivery, use of imagery, etc.

3. Keep your sentences short. That way you avoid getting into rat holes, especially if you are not sure what you really want to say. Or if there was nothing great about it, but it was good enough. Even one single sentence “Your demo was crisp” is better than 10 sentences of rambling about the market, why you tried and it did not work etc.

The frustrations of being in a constant state of flux

Why would you want to ever be an entrepreneur?

Its a largely under-appreciated, underpaid, overworked and frustrating role. The worst part is the fear, uncertainty and doubt (FUD) created by yourself and a constant battle to fight your own daemons.

Of these I am going to focus on one part. The state of “not knowing”.

Just so you know, once you become an entrepreneur, you are perpetually in a state of the unknown.

Forever.

There will always be more unknowns than known’s. There should always be (and there are) more questions – about your market, about the product, your ability to deliver, the team, your ability to raise funds, your ability to execute – the list is endless. Each new milestone ends up bringing you more questions from others and those who call themselves “insiders”.

For the few that are zen-like and do meditation to calm the soul, its rewarding to find such rich fodder for practice.

For the rest of us, who are mere mortal entrepreneurs, it is the most frustrating part.

Things will always be in a flux.

That’s where you have to draw your strength from.

Its important to know that everyone else is in the same state.

Which is why entrepreneurship is vastly underrated.

An entrepreneur’s optimism is infectious. She envelopes you with her obsession for the problem she’s trying to solve. She speaks with the eloquence of a seasoned televangelist and the passion of Russian gym coach trying to urge her prized student to over perform.

The entrepreneur’s optimism is all encompassing. The hurdles she faces daily including lack of connections, lack of credibility or even the inability to meet payroll don’t deter her. Her optimism overwhelms her outlook towards the daunting problems we mortals face daily.

The entrepreneur’s optimism is never ending. She knows (possibly) at the back of her mind that the odds are stacked against her. That’s what makes her admirable – she does not care. As far as she’s concerned, she’s not giving up, either today, tomorrow or when gas prices hit $200 per gallon.

I had a good friend and entrepreneur who I spoke with last week who was at his wits end. Having been at it for 9 months working on their product, they had completed an alpha version, beta version and released a version 1. They had gotten over 50,000+ users for their application, seen a lot of traction, only to find 2 weeks of slower growth in new user additions. That made him question everything.

The questions were valid and very relevant. The assumptions they made were not quite the right ones, so things were in a state of flux.

A few investors had seen their momentum and were interested in funding the company. He, was now simply paralyzed.

Unsure if he should take the funds because more things were unknown than known, or lead himself to believe that the money will offer him answers to the questions he had.

Even entrepreneurs who have been through this several times find this issue to be a constant source of frustration.

Things are always in a flux.

They will always be in a startup.

If they are not, then you have become a “big company” and while there are merits to being a big company, startups are a LOT more fun.

If you call being in a state of constant flux fun.

There are those that thrive in that environment. I use one trick (it is a mind trick) to make things seem fun.

I imagine how much more frustrating it would be if I were at a large company, dealing with the politics of multiple teams, conflicting priorities and boring daily routines.

Then I feel better about the fact that I as an entrepreneur, control my own destiny.

Nothing’s more liberating than that.

2013 tablet adoption to drive startups

This piece appeared at the Times of India Business section yesterday.

About 407 technology companies were started in 2012, which was a decrease of 19% from 2011. For 2013 we expect the number to increase
thanks to many startup accelerators, going to about 460+ startups.

The most number of new companies will be in mobile applications, cloud computing, software as a service, and education. Since many ecommerce infrastructure companies in payments, logistics and distribution were formed and funded, I expect a second coming of e-commerce only in 2015.

There are three major trends that are shaping the startup world. First, lower costs of tablet computers, causing rapid adoption. Second, dramatically lower 3G prices and rapid WiFi rollout, allowing most tablets to enable cloud computing. Finally, lower costs of simple biomechanical arms will see early signs of consumer robotics companies.

More than rapid adoption of smartphones, the tablet adoption will help bring disruptive changes to entertainment, education and communication in the next year. The upcoming general election in 2014 will ensure that the ruling political party will give free tablets to each low-income family that has at least one child. The primary use of this device initially will be for education and communication, but will quickly replace the television as the entertainment device of choice for the younger generation. We will see many startups provide education content and many crowd-sourced applications for test preparation.

While 4G and LTE networks might surface in India by 2013, 3G prices will lower sharply and many carriers will offer them bundled with DTH options. Thanks to smartphones, the urban youth will quickly start to create niche content in the form of short movies and music and upload them online, helping create startups that assist users to discover new entertainment choices. I also see an increase in gaming companies that offer in-app purchases and virtual goods.

Business application startups targeting small and medium businesses will continue to grow, but many will target global markets instead of India in 2013.

Finally I see the start of primitive consumer-robotics companies which are simple extensions of bio-mechanical arms aiding in specific tasks such as replacing the large water jug or cutting vegetables based on camera sensors.

Availability of seed capital will continue to increase, but later stage companies will increasingly look outside India to raise capital.

US work visa options for entrepreneurs

If your market is the US or if you are looking to get funded by US investors, then you would be most likely looking to move there as well.

There has been a recent surge in entrepreneurs applying and getting into incubator and accelerator programs in the valley, so I thought I’d put together a quick guide for entrepreneurs who are looking to move to the US for work.

There are multiple options for short term stay in the US, but to be able to work, realistically you only 5 options – H1B (work permit), L1 (company transfer), E2 (investment)EB2 (advanced degree and exceptional candidates)O (exceptional ability candidate).

The US is a notoriously hard place to get work visas for, so you should plan appropriately. While there is talk of a startup visa, expect that to take a few years to be in effect if at all. You can also obtain a B visa for temporary stay or visit, but that’s for meetings alone and technically will not let you setup your company or allow you to work.

Of the 20+ entrepreneurs, (who were interested in moving to the US) I have spoken with over the last few months, 11 have received visas for work in the US and the rest had their visas rejected. The high rejection rate had nothing to do with their company or ability, was the sense I got. It is still a largely hit or miss process for most entrepreneurs to obtain US work visas.

If you are the CEO / founder of the company and want to remain being the CEO or have a large controlling stake, then E1/E2 and O visas are the only type that will work. The E visas require you to invest over $1 Million in capital, so be warned.

The H1B and EB2 visas are more traditional work visas, used by most, but you will have to work for  the company, not as a CEO or founder (among other things). Couple of the co-founders I have spoken with, had one co-founder, who decided to stay in the US be the CEO, while the other resigned as CEO and then apply as an engineer in the H1 B category.

Only 1 founder had applied under the EB2 category, and he had a PhD, which he was told was a big reason for the lawyer to suggest that category.

The O visa has started to get more popular, but the documentation required is a lot is what I have heard. This includes making sure you have a lot of press about you and the company, a few recommendations, etc.

None of the product founders I had spoken to tried the L visa, but I know that it was a popular choice a few years ago for services entrepreneurs. This is a company transfer and is valid for 5 years, and has two options, L1A (executive and management) and L1B (exceptional category).

Those are the 5 different options for getting work visas and move to the US.

Many founders I know are also taking the route of getting a B1 visa, hiring a key co-founder or executive in the US and planning on making quarterly trips for work.

P.S. This post is not legal advice, so please do talk to a qualified lawyer in the US who practices immigration law before you decide on the best course of action for you.

Announcing the angel investor office hours in Bangalore (soon in Mumbai and Delhi as well)

How to hack your seed round in India, got 63 emails, comments and twitter messages asking me to take the post to its next logical step.

The 3 biggest issues entrepreneurs raised were:

1. They dont have the email addresses of these angel investors. Even if they did send them an email, responses were slow or went into a “black hole”.

2. The angel networks in particular have a fairly arduous process to filter, select and decide on new companies.

3. Many angel investors were not proactive in telling them what areas (sectors) they were interested in funding, so entrepreneurs could tailor their pitch to be more specific and target the right person.

I am extremely pleased to announce that in Bangalore (soon in Mumbai and Delhi as well), we will have a few of the top angel investors from IAN (working on Mumbai Angels and others as well, stay tuned) who are committing to office hours each week to meet entrepreneurs and provide them quick feedback on their funding options.

From January 2013, five of the most prolific IAN investors, Venkat Raju, Manav Garg, Nagaraj Prakasam, Sharad Sharma and Sundi Natrajan will hold monthly office hours in 2 locations – the Microsoft office at Lavelle Road and Eka Software offices in Outer Ring Road.

Update: Anil Joshi of Mumbai Angels has also agreed to host office hours in both Bangalore and Mumbai once a month.

Each session will be for 30 minutes per entrepreneur and a max of 4 entrepreneurs will be given time on a first-come-first-serve basis every month. Only one session per entrepreneur per year will be allowed.

Second, after each investment led by these investors they will write a quick note to tell us more about why they decided to invest. This will tell us more about what their thesis was, the trends they were betting on and other relevant details.

Finally each of these investors will share their investment thesis for 2013 and the sectors or areas they have expertise in or are passionate about. For example, Sharad’s an expert in Internet and advertising, whereas Sundi is passionate about education.

I am very excited that they are committing to these office hours. As entrepreneurs we will get a chance to interact with them and get their initial feedback so we can fine tune our plans and strategies to maximize our funding chances.

I do have one request: We’d like a volunteer to help program manage this effort. You should be willing to commit about 1-2 hours per week. If you are interested, please send an email to: mukund at thrisha dot com.

If you are a seed investor and you’d love to join this program, do send me an email as well.

P.S. A few folks have been asking me about other cities, such as Chennai, Hyderabad, Pune, etc. I wont be able to commit to these investors coming to those cities, but will try and get a few more local investors from those cities to hold office hours.

You think you are good at something only to find out you are not

There are a ton of people who have written about lack of quality mentorship as one of the main problems in the early stages at Indian startups. In fact, many accelerators and incubators are primarily focused on space and mentorship as the primary offerings as part of their portfolio of services.

Personally over the last 4 years in India, I have helped (I am going to avoid using the word mentor) over 50 entrepreneurs at a superficial level (day long or 2 days of my time) and 6-8 of them to a greater degree with monthly sessions on sales and go to market. Of those entrepreneurs, I financial backed only 6 of them, meaning I funded only 6 companies who needed my money and mentorship. The others I only provided my guidance.

All along, I have heard from the entrepreneurs that I was adding value and addressing their top 3 areas of concern – How to build a go to market plan, how to build a strong sales discipline at their company and helping them by opening doors to key people they wanted connections to. Turns out they were possibly being nice, to me at best.

So I generated a false sense of confidence in being good at something I was not.

I got a hard reality check a few days ago.

Over the last few months I have been helping many entrepreneurs on these exact areas, but without actually putting money in their company.

For most of them, I invested an enormous amount of time (many of them weekly) to help them understand their customers, go to market strategy and for some I helped with a complete re-positioning toward a large adjacent market. For others it was guiding them through funding options, calling a few investors who could be interested etc.

Turns out most of them (not all) only valued advice if they got funded. Else it was “gyan”.

In fact one of them mentioned that they whole point of working with me was to gain access to funding alone. Everything else was gravy.

I have written about this before based on my experience a few weeks ago.

You think you are good at something, only to find out, maybe you were wrong all along.

So, I called and asked a few entrepreneurs who they consider as high quality mentors in India. Surprisingly, only those folks that wrote checks figured on the list for many (again, not all) of them.

Rest were considered as folks who did not have “skin in the game” to help mentor, so they were detached from the outcome or the results of their advice.

There still is a need for high quality mentorship in India is my belief. I am not sure I belong in the high quality category though.

My news diet & media consumption habits

Its very hard to not read or avoid any “other” news, especially disturbing ones. I have personally avoided reading physical newspapers for the last several years. My online Google news app is my sole news source and is customized to technology, business & science news with a few stories about sports. General news, entertainment news or politics are out. The only other reading I do is on my Google reader, which has largely developer and technology blog feeds. My general “surfing” the web is rather rare unless it appears on my Facebook or Twitter feeds.

Since we have not had a television for the last 5+ years, the only time I tend to watch television is when I walk into our office and the TV monitor near the security guard has something on. That lasts a total 10 seconds.

I do get a lot of criticism from friends about this topic. Being largely ignorant about general happenings, my conversations tend to be largely uni-dimensional. I loathe any conversations about politics, dislike talking about celebrities or movies and cant carry a sports conversation beyond 10 minutes.

I mention this because I got an message yesterday from someone who asked me to attend a meeting for a gun control bill or crimes against women (or for its support I dont remember). I ignored it. Then got another message from another friend. I “unsubscribed from that facebook message”. I am sure they think I am heartless or cruel or both.

Truth is I like living in my “fake world” of technology and entrepreneurship. Out here the issues are  superficial, like choosing between a Nokia Lumia phone and a HTC One X.

I also realize I cannot avoid the real world. So I limit my interactions with it or learning about topics such as guns. That’s my way of trying to paint a rosy picture of the world for myself. I know its probably not very healthy, but that’s the path I have chosen.