Rule 12. Money is everywhere

Think of everyone as a potential investor. At the earliest stages, the cash you need to operate (for phones and computers and office space) is likely to come from friends, family, credit cards, or if you're lucky, a particularly enthusiastic angel.

Corporate funding

Even corporate funding has arrived in a big way. Having realized that the New Economy is about ideas and people, companies are now going all out to make sure they lose neither. They are offering money, infrastructure and management expertise to help execute the plans. It's all about getting a mint-new outfit -– preferably based on a New Economy idea that's linked to what you do, though that's not mandatory, up and running as soon as possible.

 

Satyam has two corporate funding programmes, one for its own employees and the Strategic Investment Program for funding outsiders. It also networks actively especially in the Silicon Valley, through associations like the Indus Entrepreneurs to keep tabs on what's happening in the industry.

 

Encouraging employees' ideas

Outfits like Crisil (Credit Rating and Industrial Services India Ltd.) and Shoppers Stop are helping their employees set up Net versions of their bricks and mortar businesses and expanding in allied areas. Most Indian firms are figuring out ways of making sure their big-company mindsets don't come in the way of being successful VCs. BPL has set up a subsidiary, BPL innovision which handles all its VC activity. Moreover, its putting up ‘venture boards' which means teams of people with prior VC experience on its side. With this move, BPL will be among the first to gain access to the best new ventures.

 

VC firms are also planning to join hands with brick and mortar companies to jointly put up venture funds with them. The rationale behind this is corporate venture capital backed startups will have a better strike rate. So if you have a sound idea, getting the money for it should be no major hassle.