Crowdsourcing our application process; Feedback needed

One of the things I am very disappointed with is that I know so little about so many markets and their opportunities.

As a selection team (we have 4 internal Microsoft and 6 external members – VC’s, angel investors and experts) we know more, but still our experiences are fairly limited compared to the entrepreneurs who apply.

We have so many applicants that are much more qualified than us, that it seems like we are under qualified to make these decisions on which companies to help and which ones to fund.

I have an idea for the next batch but I’d like some feedback.

Is it better to take a “wisdom of crowds” approach as well?

Should we take say 2-3 “slots” and provide the list of companies with an overview and plan and a selected list of say 100 people vote (with justification) on which ideas and companies should be funded?

Do you think it will work?

I dont want to give all the slots up for vote since there are some companies that are of strategic value to us.

One thing that it helps is avoid many more “Why did anyone fund this company” kinds of questions.

Please let me know your feedback.

Differentiate with a personal touch and taking time

Given the huge number of applications we had for the accelerator, one choice we had to make was how do we let people know they did not make the cut.

Having been on the receiving end of many “rejection” emails, I hated the generic “We reviewed your application and did not think it was a fit”.

So I decided to send personal hand crafted, no cut and paste, emails to every founder we could not accept – either because of their traction, the market they chose, the incomplete team they had or the fact that there were 2-3 other applicants in the same space that were further along and had more to show.

Over the last 4 days I have reviewed hundreds of youtube videos, demos and password protected mockups and wireframes.

Its hard and takes a lot of time, but that’s how we chose to differentiate ourselves – With a personal touch and taking the time to be human.

Again, to all those that applied, many thanks.

Since you have my email address (and phone number) feel free to connect with me in a few weeks so we can find ways to help you in any way possible.

What’s the difference between Indian and US startups (Q4 2012)

We finished collecting applications at the Microsoft Accelerator last week. Since I did not see the applicants from the previous batch I was extremely pleased with the high quality of applications overall. By most measures we exceeded the quality of applicants that we had internally hoped for.

Since there are 4 Microsoft accelerators worldwide – Israel, Beijing, Seattle and Bangalore we get to see trends across a fairly diverse set of companies.

I wanted to focus on 3 metrics that I noticed from our Seattle accelerator compared to the Indian one. I dont want to focus on the entrepreneurs or their background and quality but more on the ideas and markets themselves.

First where we got the applicants from was different. Our US accelerator got a lot more applicants from Australia and Europe than the Indian accelerator did. That’s to be expected since the US is a big draw, but even to an accelerator that’s not in the Valley was a surprise to me. That was not the “big aha”, though. The fact that we in India got quality applicants from Barcelona, Australia and London, besides a few from the US was a good sign. Many were not Indians who applied from those countries, but locals.
The biggest differences were in the sector / category of applicants. The US saw a lot more cloud infrastructure than we did. Nearly 25% more. The US also saw a lot more consumer Internet applications, specifically in web consumer, whereas mobile applications both in number and % were comparable.
The industries they were trying to disrupt were also a lot more diverse with some startups applying to the Seattle accelerator focusing on printing, automobile and even aerospace. Indian applicants were mostly focused on telecommunications, travel (a lot of companies this batch were travel 2.0 apps) and social networking.
The other metric that I was very surprised with was the % of bootstrapped companies was comparable. So those folks that suggest that companies outside India raise money quicker or faster now have a counter point.
Some other interesting metrics, albeit obvious to most folks.
  • Fresh out of college applicants were at least 18% of applicants in the US compared to 2% in India.
  • US had a lot more applicants with 2 or more founders, whereas in India solo founders dominated the applicants.
  • US applicants overall had far fewer employees than Indian companies at comparable stage. In fact very few were more than 5 people. Indian startups bulk up early.

What are some ways to tackle the lack of time problem?

There are many things that I am unable to prioritize high or make time for anymore. One of those things is taking time to make serendipity happen. Just random, chance meetings. Those happen, only face-to-face.

I tried dialing back in 2012, only to fail miserably.

The problem is like most other folks, I am unable to say no.

That leaves me with very little time for things that are absolutely important and I end up shortchanging those the most.

The last year in particular I have worked – attended meetings, spoken at events and hosted events on 23 of my 52 Saturdays. 

I dont like that at all since it takes time away from me spending time with my kids and family.

I have a new project with my daughter for the last 2 weeks that we are working on which should take us 30+ weekends. My son’s cricket sessions need me to be there at least 1 day a week to catch up with the coach. Finally my youngest daughters need more time to just hang out with me. I have also committed to mentor 3 folks who I work with closely.

So I unfortunately have no time for new projects or mentoring new entrepreneurs at all. I apologize.

I love helping new entrepreneurs a lot. I enjoy my interactions. I cant make time.

So I am going to try and not be at any new startup events unless we have them at our office for this quarter. Let me see how that goes. I have one commitment to meet folks in Delhi on Feb 22nd.

I have a question:

Is it okay for me to ask folks to reduce the time they can meet me and talk about their product / company to just the time of the event? I wont be able to give a lot of time, even at the event, but that’s a choice I am making.

Is that being too selfish?

Where would you put $50 million in the next 5 years?

Lets play Venture Capitalist for a day shall we?

Assuming a 5 year investment horizon starting in 2013 in 50 startups and a total of $50 million, what areas (technology categories) would you put money in to get the best return by 2018?

Some rules:

1. You have to put the same amount of money in each company and it cannot exceed $1 Million.

2. You have to put all the money in technology companies alone.

3. You can get “exits” before 2022, but your entire portfolio will be liquidated on Dec 2022 (10 year fund).

A partial list of categories for you to consider. You can put 100% in one or spread them around, or ignore a few categories as you wish.

1. Consumer Internet

2. Mobile applications

3. SaaS applications

4. Cloud infrastructure software

5. Gaming

6. eCommerce

7. Robotics

8. 3D printing

9. Social Networking

10. Storage software

11. Networking (like Cisco, Juniper, etc.)

12. Data Center technology

13. Education technology

14. Healthcare technology

15. Big data

Any other category I missed.

Why I am putting this together?

I will be putting together our investment thesis and our mix of companies so I’d love to crowd source some of the thinking behind startup investing.

If you think its better to do a form or a survey type web page, let me know, else just give me your spread and mix in the comments.

Dont ever worry about the cynics – Do good for the sake of it

Most people want to know why we dont take any portion of company even though we offer so  much at the Microsoft accelerator.

The cynics even think we are in it to acquire these companies, or to force them to move to Microsoft technology. Its neither.

Its actually relatively simple.

Its to get more engaged with the startup community. At Microsoft we have multiple programs to do this including BizSpark, but we are not deeply engaged with startups as we’d like. We want learn about their challenges and how we can make our products a better fit for their needs as well.

I believe this to be true for my own personal life as well.

I spend a lot of time with startups (23 cities, 800+ people over 1 year), providing free sales training, spending my money for travel as well, with no intent of ever getting anything back.

I know critics and cynics thinks so I can build a brand or to “make lots of money later”.

Actually so far I have never made any money from all of these interactions and I never will.

Its simply because I want do good and I enjoy doing it.

So never bother about the cynics. Ignore them and keep doing good. It feels great and you’ll be better for it.

How to do very bad marketing – an example

<Being rant>

The latest trend among US marketing folks is to put a blog post of 50 sentences into 50 slides. Not sure why a simple one page blog post wont cut it – actually wait, I do. Its to get “multiple outposts” which all say the same thing in “different ways”. Some viewers prefer SlideShare as the way to read stuff instead of text.

So what ends up happening is to read something in 2 minutes you will end up clicking 50 slides to read 50 sentences.

The part that makes no sense is that its just text in those slides. No images, no visuals, not storytelling.

Which makes it look like a Word document pasted into a PowerPoint deck.

Rather lame. Dont you think? Or am I missing something?

</End rant>

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!

The personal blog of Mukund Mohan