Shark Tanking for Indian Dreams

India Fund Fest 2017, country’s first startup funding fest has seen responses from across 2,800 startups vying for funds. Here’s an excerpt from an exclusive interaction with Dinesh Singh, festival chairman and Nalin Singh, festival mentor……..

How would you define "India Fund Fest" as India's first 'Serious Funding Fest'? Is it one of its kind in India?

We have never had a funding feat that had the entrepreneur at the centre of the world without necessary distractions such as speeches, sellers, crowds etc. At least not on this scale. This is about the investor and the entrepreneur and the only parameter by which we define our success is by the adequate funding received by our entrepreneurs.

How does "India Fund Fest" differentiate itself in the entire funding space panning out in India and with respect to the numerous issues cropping up concerning funding issues in the country?

We only focus on getting the entrepreneurs funded. Our ‘proprietary funding readiness report’ ensures that the entrepreneurs are well prepared and understand the strengths and issues with their businesses. Similarly, investors are assured that the company has not only been subjected to a detailed due diligence but also through idea and business validation processes. This brings in a certain confidence and credibility that results in meaningful conversations and faster results.

What is the background of 'India Fund Fest' organizers?

Please refer to the website. Every single one of them has been an entrepreneur and has around 25 years of corporate experience at the senior-most levels and works with entrepreneurs.

What are the major roadblocks for startups when it comes to funding?

Assuming the startup is “funding ready” the major roadblocks are in finding investors whose investment philosophy and ‘stage of fund’ match the startups needs.

 Since January 2016 government has been making too much noise about startup funding, what is the ground reality?

Almost nothing has been disbursed. Government schemes typically take two-three years to get streamlined and show results. So we should be seeing results in the next year or so.

How are the investors responding?

We have had an overwhelming response. 2800+ startups have applied out of which we have shortlisted about 10 per cent for the next stage. Investors have been enthused about coming to a serious event where they could make business decisions without indulging in too many casual conversations in the hope of finding an investment-worthy company.

Going ahead, how ‘funding scene’ would pan out in India, say, over the next one year?

It is rapidly maturing and we expect the investors to get pickier and organized about the way they invest. We also expect the entrepreneurs to start getting better prepared for funding rounds than they are now.

Are the private equity players back in the scene?

Not really. It is a wait and watch mode. Fingers crossed, maybe in the next 12-18 months we will see movement again.

What is the eligibility criteria for the startups to get funded in India?

Each investor has his own. But the basics of having an idea with potential, scalability in a fast growth industry and backed by a good team with the execution skills is pretty mandatory. There are too many people seeking funding for “me too” ideas or “incremental” ideas or franchise ideas. A startup must have something unique or innovative about its product or service or addressable market for it to attract an investor.

 How much are the investors ready to dole out?

Money is never the problem for the right idea.