Lecture Apurv Startup

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
Tinkering and Mentoring (TMI-101)

Mentoring
Funding Opportunities, Business Plan and Case Studies
Dr. Apurv Kumar Yadav,

Assistant Professor, Department of Electrical Engg.,
Indian Institute of Technology, Roorkee
EML: [email protected]
URL: http://apurv.ee.faculty.iitr.ac.in/index.html
Start-up
• Difference between entrepreneur or businessmen ?

• Difference between start-up and business ?
Apurv Kumar Yadav, Department of Electrical Engineering, IITR 2

Start-up Funding
• A startup requires funding for the following purposes

• Prototype creation
• Product development
• Team building
• Working capital
• Legal and consulting services
• Raw materials and equipment
• Licenses and certifications
• Marketing and sales
• Office space and admin expenses
• It is important that the founder must be aware of for what they are raising funds for.
• Outlay: Fixed costs plus capital and investments.
• Income: This is the projected income.

Understanding of the Funding
• The ‘J-curve’ or ‘hockey stick curve’ for capital demand.

• Initial negative cash flow in amounts equal to the area labelled A is gradually offset by
sales to reach break-even point (B).
• Thus A equals total investment needs
• When positive returns are achieved, the company eventually reaches a point where
investments have been covered, i.e. the area of A is equal to the area of C. This equates to
the basic RoI (return on investment) time.
• When further profits are returned – typically when D > 35% of C – then investors are
ready to sell to later investors happily (the investors make money).
Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Types of Startup Funding
Working
Equity Financing Debt Financing Grants
Capital
A grant is an award, usually
Equity financing involves
Debt financing involves the financial, given by an entity
selling a portion of a
Definition borrowing of money and to a company to facilitate a
company's equity in return
paying it back with interest. goal or incentivize
for capital.
performance.
There is no component of Invested Funds to be repaid There is no component of

Nature repayment of the invested within a stipulated time frame repayment of the invested
funds. with interest funds
Financer: There is a risk of
Financer: There is no Financer: The lender has no
the startup not meeting the
guarantee against his control over the business's
goal or objective for which
investment. operations.
the grant has been provided.
Risk
Startup: There is a risk of the
Startup: Startups need to Startup: You may need to
startup not receiving a portion
give up a portion of their provide a business asset as
of the grant due to several
ownership to shareholders. collateral.
reasons.
https://www.startupindia.gov.in/content/sih/en/funding.html
Types of Startup Funding Cont.
Working
Equity Financing Debt Financing Grants
Capital
Startups need to Grants are distributed in
While startups are under lesser constantly adhere to different tranches w.r.t the
pressure to adhere to a repayment timeline fulfilment of the
Threshold of
repayment timeline, investors which results in more corresponding milestone.
Commitment
are constantly trying to achieve efforts to generate cash Thus, a status is constantly
growth targets flows to meet interest working to achieve the
repayments milestones laid down.
Return to
Capital growth for investors Interest payments No Return
Investor
Equity Investors usually prefer Debt Fund has very less

Involvement No direct involvement in
to involve themselves in the involvement in
in Decisions decision making
decision-making process decision-making
Central Government, State
Angel Investors, Self-financing, Banks, Non-Banking
Governments, Corporate
Family and Friends, Venture Financial Institutions,
Sources Challenges, Grant
Capitalists, Crowd Funding Government Loan
Programs of Private
Incubators/Accelerators Schemes
Entities
Stages of Startups and Source of Funding
• Multiple sources of funding for startups are available. Typically, the source of funding depends on
the stage in which startup is present.
Ideation Stage
This is the stage where the entrepreneur has an idea and is working it. At this stage, the amount of funds
needed is usually small. Additionally, at the initial stage in the startup lifecycle, there are very limited and
mostly informal channels available for raising funds. The funding acquired at this stage is called as pre-
seed stage. Typical, channels of funding include
• Bootstrapping/Self-financing:
Bootstrapping a startup means growing the business with little or no venture capital or outside investment.
It means relying on your savings and revenue to operate and expand. This is the first recourse for most
entrepreneurs as there is no pressure to pay back the funds or dilute control of your startup.
• Friends & Family
This is also a commonly utilized channel of funding by entrepreneurs still in the early stages. The major
benefit of this source of investment is that there is an inherent level of trust between the entrepreneurs and
the investors
• Business Plan/Pitching Events
This is the prize money/grants/financial benefits that are provided by institutes or organizations that
conduct business plan competitions and challenges. Even though the quantum of money is not generally
large, it is usually enough at the idea stage. What makes the difference at these events is having a good
business plan. https://www.startupindia.gov.in/content/sih/en/funding.html

Stages of Startups and Source of Funding Cont.
Validation Stage
At this stage, a startup has a prototype ready and needs to validate the potential demand of the startup’s
product/service. This is called conducting a ‘Proof of Concept (POC)’, after which comes the big market launch.
The funding acquired at this stage is called as seed stage.
A startup will need to conduct field trials, test the product on a few potential customers, onboard mentors, and
build a formal team for which it can explore the following funding sources:
• Incubators
Incubators are organizations set up with the specific goal of assisting entrepreneurs with building and launching
their startups. Not only do incubators offer a lot of value-added services (office space, utilities, admin & legal
assistance, etc.), they often also make grants/debt/equity investments.
• Government Loan Schemes
The government has initiated a few loan schemes to provide collateral-free debt to aspiring entrepreneurs and
help them gain access to low-cost capital such as the Startup India Seed Fund Scheme and SIDBI Fund.
• Angel Investors
Angel investors are individuals who invest their money into high-potential startups in return for equity. Reach out
to angel networks such as Indian Angel Network, Mumbai Angels, Lead Angels, Chennai Angels, etc., or relevant
industrialists for this.
• Crowdfunding
Crowdfunding refers to raising money from a large number of people who each contribute a relatively small
amount. This is typically done via online crowdfunding platforms.

Early Traction Stage
At the Early Traction stage startup’s products or services have been launched in the market. Key performance
indicators such as customer base, revenue, app downloads, etc. become important at this stage. The funding
acquire at this stage is called as Series A stage.
Funds are raised at this stage to further grow the user base, product offerings, expand to new geographies, etc.
Common funding sources utilized by startups in this stage are:
• Venture Capital Funds
Venture capital (VC) funds are professionally managed investment funds that invest exclusively in high-growth
startups. Each VC fund has its investment thesis – preferred sectors, stage of the startup, and funding amount –
which should align with your startup. VCs take startup equity in return for their investments and actively engage
in the mentorship of their investee startups.
• Banks/Non-Banking Financial Companies (NBFCs)
Formal debt can be raised from banks and NBFCs at this stage as the startup can show market traction and
revenue to validate its ability to finance interest payment obligations. This is especially applicable for working
capital. Some entrepreneurs might prefer debt over equity as debt funding does not dilute equity stake.
• Venture Debt Funds
Venture Debt funds are private investment funds that invest money in startups primarily in the form of debt. Debt
funds typically invest along with an angel or VC round.

Scaling Stage
At this stage, the startup is experiencing a fast rate of market growth and increasing revenues. The funding
acquire at this stage is called as Series B, C, D, E.
Common funding sources utilized by startups in this stage are:
• Venture Capital Funds

VC funds with larger ticket sizes in their investment pool provide funding for late-stage startups. It is
recommended to approach these funds only after the startup has generated significant market traction. A pool of
VCs may come together and fund a startup as well.
• Private Equity/Investment Firms

Private equity/Investment firms generally do not fund startups. However, lately some private equity and
investment firms have been providing funds for fast-growing late-stage startups who have maintained a consistent
growth record.

Exit Option
• Mergers & Acquisitions
The investor may decide to sell the portfolio company to another company in the market. In essence, it
entails one company combining with another, either by acquiring it (or part of it) or by being acquired (in
whole or in part).
• Initial Public Offering (IPO)
IPO refers to the event where a startup lists on the stock market for the first time. Since the public listing
process is elaborate and replete with statutory formalities, it is generally undertaken by startups with an
impressive track record of profits and who are growing at a steady pace. Initial Public Offering is the first
time that the stock of a private company is offered to the public. Issued by private companies seeking
capital to expand. It is one of the most preferred methods by investors to exit a startup organization.
• Selling Shares
Investors may sell their equity or shares to other venture capital or private equity firms.
• Buybacks
Founders of the startup may also buy back their shares from the fund/investors if they have liquid assets
to make the purchase and wish to regain control of their company.
• Distresses Sale
Under financially stressed times for a startup company, the investors may decide to sell the business to
another company or financial institution.
Why Do Investor’s Invest
• Investment options (per annum)

• Saving Bank: 2 to 5%
• Fixed Deposit: 5 to 8%
• Gold: 10 to 12%
• Mutual Fund: 12 to 15%
• Equity: 15 to 30%
• Real Estate: 2 times in 5 to 7 years
• Start-up: Exponential returns
• Investor: High risk and high return approach.

Investor’s Outlook (What Do They Look)
• Objective and problem solving

• The offering of any startup should be differentiated to solve a unique customer
problem or to meet specific customer needs. Ideas or products that are patented show
high growth potential for investors
• Management and Team
• The passion, experience, and skills of the founders as well as the management team
to drive the company forward are equally crucial in addition to all the factors
mentioned above.
• Scalability and Sustainability
• Startups should showcase the potential to scale in the near future, along with a
sustainable and stable business plan. They should also consider barriers to entry,
imitation costs, growth rate, and expansion plans.
• Customers and Suppliers
• Clear identification of your buyers and suppliers. Consider customer relationships,
stickiness to your product, vendor terms as well as existing vendors.

Investor’s Outlook (What Do They Look) Cont.
• Competitive Analysis
• Consider the number of players in a market, the market share, obtainable share in the
near future, product mapping to highlight similarities as well as differences between
different competitor offerings.
• Sales and Marketing
• No matter how good your product or service may be, if it does not find any end-use,
it is no good. Consider things like a sales forecast, targeted audiences, product mix,
conversion and retention ratio, etc.
• Exit Avenues
• A startup showcasing potential future acquirers or alliance partners becomes a
valuable decision parameter for the investor. Initial public offerings, acquisitions,
subsequent rounds of funding are all examples of exit options.

Steps to Startup Fund Raising
• The fund raising process can be divided into following steps:

1. Accessing the need for funding
The startup needs to assess why the funding is required, and the right amount to be raised.
2. Assessing Investment readiness
Any investor will take you seriously if they are convinced about your revenue projections and their
returns. Investors are generally looking (already discussed in previous slides)
3. Preparation of Pitch deck (in future slides)
4. Investor Targeting
Every investor has an theory which is a strategy that the venture capitalist fund follows. Their theories
identifies the stage, geography, focus of investments, and differentiation of the firm. One can gauge it by
thoroughly going through the company website, brochures, and fund description. To target the right set
of investors, it is necessary to research their mission, their past investments in the market, and speak with
entrepreneurs who have successfully raised equity funding. This exercise will help you:
• Identify active investors
• Their sector preferences
• Geographic location
• Average ticket size of funding
• Level of engagement and mentorship provided to investee startups
Steps to Startup Fund Raising Cont.
5. Due diligence by interested investors

Angel networks and VCs do a thorough diligence of the startup before finalizing any equity deal. They
look at the startup’s past financial decisions and the team’s credentials as well as background. This is
done to ensure that the startup’s claims regarding the growth and market numbers can be verified as well
as to ensure that the investor can identify any objectionable activities beforehand. If the due diligence is
a success, the funding is finalized and completed on mutually agreeable terms.

Preparation of Pitch deck
• The initial pitch presentation (this could be a PPT or a PDF document) should not be more than 12 - 15
slides. Mostly comprises of visual charts, images, bullets.
• It is like a story telling backed with facts, research, conviction and passion.
• Stick with time allotted to you, do not bluff, thorough with facts, be discrete and precise.
• Best for equity fund raising, searching co-founders, accelerator applications.
• Intended for Angel investors, VCs, crowdfunding platforms, general public
• At this stage, details and numbers are not necessary. they are keen to understand if the concept
addresses a real opportunity, if the business case is strong, if the team is well rounded, competent &
committed, and the traction that the team has been able to achieve so far.
Following points to be covered
1. Cover slide
• Company name and logo
• Contact details (city, e-mail, mobile, URL)
• One line that clearly describes the concept/product/service
https://www.startupindia.gov.in/content/dam/invest-
india/Templates/public/Tools_templates/internal_templates/pitch_guidelines/Pitch%20deck%20Guidelines.pdf
Elements of Pitch deck
2. Team
• Credentials : Brief background , academics, experience
• Complementary skills, Key Responsibilities
• Advisory Board
• Equity structure
3. Solution to problem
• What is the problem being solved
• Explain why your customers need your solution
• Mention what they are currently doing and how your product/service is a better solution
4. Product/Technology Overview
• Highlight the uniqueness of the product or service or technology and NOT the technical details for
each feature in the product/solution/service
5. Business or Earning Model
• This is about how you will make money from this business opportunity
• ·This is NOT the excel sheet, in simple terms, this is about who will pay how much and to whom
for your product
• Monthly /Annual/ Subscription model (eg Netflix / Amazon prime)
• Aggregator fees / commission (Amazon / Flipkart / Bigbasket)
6. Size of the Market Opportunity
• TAM (Total Addressable Market), SAM (Serviceable Available Market), SOM (Serviceable
Obtainable market)
• Competitive, landscape, Positioning.
• Potential
• Be clear about where and who is going to buy your product/service and how much would they pay
for it
• This section is NOT about what your plans are, but about what the size of the market is. This
section should therefore give a sense about how many customers are there in your target market
and at what price are you selling your product to them, what is the revenue potential if all of them
were to buy (not that they will, but this is to give an indication of what the size of the market is)
https://blog.hubspot.com/marketing/tam-sam-som

7. Current Traction
• What have you achieved so far – product, customers, revenues, etc. Your Status
• Topline / Bottomline / Market presence/ Product Range / Customer segment
• Include photographs, if possible (e.g. if you have physical stores or products that you manufacture
or office pictures)
8. Competitive Landscape
• Who are currently or in future likely to compete against your product/service and what is your
plan to win this battle?
• Explain why are you better than your competitors
• What kind of entry barriers are there in the industry ?
• Steps to stop or delay competition
9. Current financials and Projections
• Summary of your financials for 3 years (key figures like annual revenue, profits, cashflow, etc.).
• How will you scale, expansion plans
• Go to Market, Product market fit, plans for new product range
• Break-up of your costs into CAPEX (Capital Expenditure like land, machinery, buildings) and
OPEX (Operating Expenditure like salaries, electricity, raw materials, fuels, marketing)
• Cover the unit economics, i.e. how much revenue do you get per transaction/customer, how much
does it cost you to service that customer/order, what is your customer acquisition cost (CAC).
10. Funding needs, and Proposed Valuation
• Describe how much money you want to raise and its planned usage
• Mention if there are other co-investors (or others who have already committed)
• Clearly indicate how long will these funds last and what you will be able to achieve with it
• Clearly mention if you are going to require follow-on capital, and if so, how much
• The valuation you are seeking for this round
11. Current Equity Structure, Fundraising History and Investors
• Table of current equity holding (cap table)
• How much money have you invested?
• Mention previous investment history, including year, amount and investors
12. Risk Mitigation
• Identify risks involved : Legal/ technological/ political/regulatory/ environmental
• Plan to mitigate these risks
13. Exit Options
• How do you think the investors can exit (i.e. who will buy their equity or do you feel that this can
be an IPO)
• If you can, give examples of exits in your industry (or comparable examples)
Elevator Pitch
• Summary of overall pitch in 30 to 40 sec
• What benefits does it offer the customer?
• What is the RoI?
• How is the customer to be reached?
• Which methods are to be used?

Business Plan
• A business plan is a long document that contains a detailed description of your business
and business plan. Unlike a pitch deck, a business plan is prepared as a word document
and often includes 30 up to 300 pages.
Pitch Deck Business Plan

Format Power point Word document
Length 12-15 slides 30-300 pages long
Design Visual (bullets, charts, Mostly Plain text
images, bullet points)
Best for Equity fundraising, finding Grant applications, Debt
co-founders, accelerator fundraising
application
For whom? Angel investors, VC firms, Public institutions, Debt
Crowdfunding platforms, investors banks
general public
https://sharpsheets.io/blog/startup-business-plan-vs-pitch-
deck/#:~:text=No%2C%20because%20the%20business%20plan,Employees%20and%20team%20structure

Elements of Business Plan
• Typically the contents of a business plan will consist of the 16 classical elements:
1. Executive Summary
2. The Business Idea
3. Background*
4. Ownership ands Company Structure
5. The Team: Leadership, Board of Directors, Accountants and Lawyers
6. The Product
7. The Patent Situation*
8. The Marketing Plan
9. Sales and Distribution
10. Competitors
11. Customers
12. Agreements and/or Alliances*
13. The Budget
14. Investment Needs
15. Any Barriers
16. Profit and Exit *- Optional
Elements of Business Plan Cont.
1. Executive Summary (like a Elevator pitch)
Venture capitalists receives 1000 business plans per day. That means that the Executive Summary has to
be very well written in order to get attention. It should be clear, concise and not one single word or too
long. Normally it is the part that is written last, since many experience that the process of writing the rest
of the business plan helps
2. Business Idea
It should start with a description of which problems the product solves and what advantages it offers to
the customer, and the advantages it has over competing products/services. It explains how processes
operate normally, what the innovation is, and how the entrepreneur will take advantage of this.
It includes market analysis using tools
• Porter’s Five Forces: The classic analysis of how attractive a potential market is.
• SLEPT: A kind of extended Porter’s, dealing with the Social, Legal, Economic, Political, and
Technological influences from the environment acting on a business.
• Strategic Group Mapping: An extension of Porter’s, used to identify Critical Success Factors.
• SWOT: Estimating the proposed company’s (or product’s) ability (Strengths, Weaknesses,
Opportunities and Threats) to conquer the intended market.
• 5 Boston Matrix: Established firms can analyze their current portfolio of products, divide them into
‘Stars’, ‘Cash Cows’, ‘Problem Children’ and ‘Dogs’ and thus decide which products should receive
more or less investment.
3. Background
If applicable and if it adds to the prestige, then some background information can be added. For
example, association with research labs and awards.
4. Ownership and Company Structure
It includes the name and number of the company, and their ownership, together with any other relevant
information (e.g. accreditation, membership of professional organizations, etc.). There should be a
paragraph detailing how many others are employed, together with a projection about the company size in
the future.
It may also be relevant to add a paragraph about the organization or mention any other special
organizational aspect.
5. Team: Leadership, Board of Directors, Accountants and Lawyer
The leadership will probably consist of the original inventors and entrepreneurs, together with any
professional help, which has been bought or borrowed. This section should list their names, what their
functions are, their affiliations and a brief CV of each one.
The Board of Directors is extremely important. Typically they are ‘bought in’ experts from various fields
and have excellent networks. They may work for as little as two hours per quarter (i.e. attend quarterly
board meetings) bringing in their advice, network and business contacts.

6. Product
A brief description of what the product is, what it can do and how it differs from other products. If the
product is not complete, then milestones should accompany the development plan. Here product lifetime
and expected frequency of buying may be relevant. It may also be the best place for pricing strategy.
Note that price strategy can be different for different customer groups.
Drawings, blueprints, etc. of the product can be attached as an appendix and should not be part of the
business plan.
7. Patent Situation
Here the intellectual property rights situation is briefly explained, including a description of competing
patents. Completed patents or patent proposals should be attached as an appendix and should not be part
of the business plan.
8. Marketing Plan
It is a written statement of the marketing objectives, strategy, timetables, and goals. This can be about the
acquisition of new customers, or the increased retention of existing customers.
The marketing plan also details the implementation of the key activities, including the roll out of the
actual marketing, advertising and sales activities. These are summarized and collated – often in tabular
form – along with their costs. Costs can be broken down further and cross-correlated (e.g. budget by
manager, budget by market, budget by product, budget by type, etc.).

9. Sales and Distribution
These may include any special advantages the company has, as well as special activities (Roll-Out,
discounts, etc.). Price policy can be discussed here, if not already a part of the product description.
10. Competitors
There are always competitors (if not immediate, then at least potential) and baldly stating that
competitors do not exist will, unless it is an extremely special circumstance, make the business plan
appear unrealistic. Competitors should be listed together with a mini-SWOT for each one, which
realistically indicates the risks that each one poses.
11. Customers
This section should specify which customer segment is/are the primary target group(s) and which are the
secondary, tertiary, etc., if possible with a time scale (if not already mentioned in the marketing plan).
12. Any Agreements and/or Alliances
This section specifies any agreements that have been made with other companies, and any formal
alliances, which have been signed, or are in the process of being negotiated. This may include suppliers,
agents, franchising, resellers and retailers, etc.

13. Budget
If the company has been running for some time, then the previous year’s budget and accounts can be
used. In principle, this consists of overall revenue, net profit, inventory cost, other sources of income,
raw material and other supplies, other external costs (insurance, etc.), salaries costs, depreciation,
earnings versus costs, tax, capital expenditure, operating expenditure.
This needs to be done by the accountant. Accountant is a must.
14. Investments Needs

Investment needs follow logically from the budget. Figures come from two sources:
• Outlay: Fixed costs plus capital and investments. These may well come out of your marketing plan
for large and/or high tech projects, development costs are a major outlay.
• Income: This is the projected income, i.e. represents your best supposition, based on the marketing
plan, but is approximate by its very nature
• When Outlay > Income, needs investment. When outlay= income then breakeven point is reached.

15. Any barrier
Barriers (if any) must be openly and honestly discussed, together with rescue scenarios. Barriers can be
divided into two kinds: external and internal. External could, for example, be changes in law, loss to
property. Internal factors include a key worker leaves, or the company cannot attract sufficient
manpower of the right quality.
16. Profit and Exit
An investment should be a ‘win-win situation’ for investor and company alike. Thus there must be a
clear exit strategy from the start, a strategy that everybody knows about and explicitly approves of.

Equity Distribution: Examples
Equity Dilution
Return (after
Seed Stage Series A Series B Series C
series C)
Pre-Money Valuation (INR) 10,00,000 10,00,000 40,00,000 90,00,000
Post-Money Valuation (INR) - 12,50,000 50,00,000 1,00,00,000
Percentage(%)
Founder A 50 40 32 28.8
Founder B 25 20 16 14.4
Founder C 15 12 9.6 8.64
Founder D 10 8 6.4 5.76
Investor A (2,50,000) 0 20 16 14.4 1440000
Investor B (10,00,000) Not invested 20 18 1800000
Investor C (10,00,000) Not invested 10 1000000
100 100 100 100
𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑟𝑎𝑖𝑠𝑒𝑑
𝑃𝑜𝑠𝑡 − 𝑚𝑜𝑛𝑒𝑦 𝑣𝑎𝑙𝑢𝑎𝑡𝑖𝑜𝑛 =
𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑒𝑞𝑢𝑖𝑡𝑦
• Pre-money valuation depends on the company track record, traction, etc. (generally decided by the
founders in consultation with the advisors, board of governors, previous investors, etc. There is no
such formula for pre-money valuation).
• The company valuation is generally determine by post-money valuation.
Marketing Analysis Tools- SWOT Analysis
• SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a
technique for assessing these four aspects of your business.
• SWOT Analysis is a tool that can help you to analyze what your company does best now, and to
devise a successful strategy for the future. SWOT can also uncover areas of the business that are
holding you back, or that your competitors could exploit if you don't protect yourself.
Positives Negatives
https://www.mindtools.com/amtbj63/swot-analysis
https://www.edrawmax.com/article/uber-swot-analysis.html

Lean Canvas Model
https://railsware.com/blog/lean-canvas/
Example: Lean Canvas Model
https://railsware.com/blog/5-lean-canvas-examples/
Common Funding Options
• GoI schemes, eg. DST (Nidhi Prayas), MEITY, Startup-India, TIH, Start-up competitions, state-
level funding.
https://msh.meity.gov.in/
https://www.startupindia.gov.in/content/sih/en/government-schemes.html
http://tdb.gov.in/seed-support-scheme/
https://www.nidhi-prayas.org/#parentVerticalTab11
• Incubation centers at all the major education centers (eg, IITs, IIMs).
• Get into the network of the investors.

CASE Study
BluSmart
• BluSmart mobility was founded in 2019 with the aim to offer urban India a ride-sharing experience
in a sustainable manner. The company is the country's first electric shared smart mobility platform
that offers efficient, affordable, intelligent, and sustainable mobility.
• BluSmart Mobility is founded by Anmol Sing Jaggi, Puneet Singh Jaggi, and Punit K Goyal in
2019.
• BluSmart has raised a total of $184 million in funding over ten rounds.
https://startuptalky.com/blusmart-success-story/
CASE Study
Swiggy
• Swiggy is a food delivery platform at its core, the services of which can be accessed from Android
and IOS devices, and through the website. It partners with a wide range of restaurants and provides
easy access to diverse food dishes from varying cuisines.
• It is founded by Sriharsha Majety, Lakshmi Nandan Reddy, Rahul Jamini, Rahul Kapoor.
• Swiggy has seen a total of $3.6 billion worth of funding over 16 rounds.

CASE Study
Ola Electric
• Ola Electric, which started taking bookings in July 2021, has already begun achieving some memorable milestones.
Some of them can be summed up as:
• Ola Electric has clocked sales worth Rs 1100 crore in just 2 days
• It was hailed as the best-selling electric 2-wheeler after Hero Electric in March 2022, when it clocked the sale of
9000+ units.
• With over 12689 units of Ola Electric scooters sold in April 2022, Ola Electric was recognised as the highest-
selling electric two-wheeler company in India.
• Ola has sold 41,024 units in 2022, as reported on June 2022.
• Bhavish Agarwal is the solo founder.
• OLA Electric has raised $860.2+ mn via over 9 funding rounds that the company has seen.
https://startuptalky.com/ola-launch-electric-scooter/

CASE Study
Zoho
• Zoho Corporation has been divided into the following three divisions -
• Zoho.com - This division offers products related to Online business, and productivity and
collaboration applications.
• ManageEngine - Offers Enterprise Management tools.
• WebNMS is the IoT software division of Zoho Corporation.
• Zoho Corporation Private Limited is an Indian company, founded by Sridhar Vembu and Tony
Thomas in 1996. The company started its operations from a small apartment in the suburbs of
Chennai. Zoho was initially named ‘AdventNet’, and the only service offered was Network
Management.
https://startuptalky.com/zoho-success-story/
CASE Study
Amazon Food, Distribution
• In May 2020, Amazon Food entered the competitive Indian food delivery market. However, after
trying it out for more than two and half years, Amazon decided to shut down its food delivery
platform, which was being piloted in Bengaluru, India, by 29 December 2022.
• Reasons for failure Amazon Food failed in India due to stiff competition from established players
like Zomato and Swiggy, localization challenges in catering to diverse culinary preferences,
operational complexities in building a reliable network of restaurants and delivery partners, and
broader cost-cutting measures undertaken by Amazon in a challenging economic environment.
https://startuptalky.com/why-startups-fail-case-study/
CASE Study
Dark Sky
• Dark Sky was a weather forecasting app that provided hyperlocal weather information and accurate
forecasts to users. It was founded in 2011 by Adam Grossman and Jack Turner. Dark Sky gained
popularity for its user-friendly interface and precise weather predictions, which were based on real-
time data and advanced algorithms.
• Reasons for failure: Sky announced that it had been acquired by Apple and would be discontinued
on other platforms, including Android. The acquisition by Apple led to the dissolution of Dark Sky
as an independent entity, and its features were integrated into Apple's own weather services.
CASE Study
DocTalk
• Founded in 2016, by Krishna Chaitanya Aluru, Akshat Goenka, and Vamsee Chamakura, Doctalk
connected doctors with patients. Through the Doctalk app, one could find good doctors in the
vicinity and after just one in-person visit, the patient could connect to the doctor through the Doctalk
app for further consultation and queries.
• The patients had to pay a subscription fee, whereas the doctors were charged an initiation fee. In
2018, Doctalk pivoted to a new business model wherein it built an electronic medical record (EMR)
solution to help doctors write digital prescriptions on customized prescription templates. The EMR
business was launched under a new brand name 'Pulse' and was sold to the doctors as a tool that let
them digitalize the entire consultation, and share the same with the patients.
• Reason for failure: Doctalk's pivot from its initial business model into the electronic medical record
solution (EMR) business was not successful; it is often cited as the cause of DocTalk's closure by
company insiders.
CASE Study
DocTalk
• Founded in 2016, by Krishna Chaitanya Aluru, Akshat Goenka, and Vamsee Chamakura, Doctalk
connected doctors with patients. Through the Doctalk app, one could find good doctors in the
vicinity and after just one in-person visit, the patient could connect to the doctor through the Doctalk
app for further consultation and queries.
• The patients had to pay a subscription fee, whereas the doctors were charged an initiation fee. In
2018, Doctalk pivoted to a new business model wherein it built an electronic medical record (EMR)
solution to help doctors write digital prescriptions on customized prescription templates. The EMR
business was launched under a new brand name 'Pulse' and was sold to the doctors as a tool that let
them digitalize the entire consultation, and share the same with the patients.
• Reason for failure: Doctalk's pivot from its initial business model into the electronic medical record
solution (EMR) business was not successful; it is often cited as the cause of DocTalk's closure by
company insiders.
CASE Study
Mr.Needs
• MrNeeds was a grocery delivery startup founded by Hitashi Garg, Yogesh Garg, Ravi Wadhwa, and
Ravi Verma. It provided a subscription-based grocery delivery service. People could easily pay for
their subscriptions and receive their groceries on the set date. MrNeeds, a Delhi-based startup, did
well with more than 10,000 deliveries in Noida alone.
• Reason for failure: MrNeeds was a subscription-based startup. Hence, turnover might not have
been that great given how frugal Indians usually' tend to be. So it is possible that the startup had a
lack of funding to sustain itself. The entry of funded grocery delivery startups like Grofers and Big
Basket can also be another reason for MrNeeds' failure.
CASE Study
Roder
• Inter-city travel has become a mainstream requirement— traveling 100 km or more every day is
deemed as just another day to some. The reason may be anything: office location, excursion,
meeting a friend, etc. These journeys can burn a hole in the pocket. Roder (earlier known as Insta
Cabs) was founded by Abhishek Negi, Ashish Rajput, and Siddhant Matre in 2014 to ease inter-city
rides. One of Roder's highlights was offering one-way rides at nearly half the market price.
• Reason for failure: The inability to cope with customer acquisition costs and not keeping up with
the user retention rates. Moreover, increased competition from experienced ventures
like Ola and Uber added to Roder's woes. Having a bigger competitor that is more aggressively
funded makes the entrepreneurs lose their zeal. And this is one of the major causes of entrepreneurial
failure.
Thank You
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INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Tinkering and Mentoring (TMI-101)

Dr. Apurv Kumar Yadav,

• Difference between entrepreneur or businessmen ?

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 2

• A startup requires funding for the following purposes

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 3

• The ‘J-curve’ or ‘hockey stick curve’ for capital demand.

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

There is no component of Invested Funds to be repaid There is no component of

Equity Investors usually prefer Debt Fund has very less

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 7

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 8

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 9

• Venture Capital Funds

• Private Equity/Investment Firms

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 10

• Investment options (per annum)

• Investor: High risk and high return approach.

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 12

• Objective and problem solving

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 13

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 14

• The fund raising process can be divided into following steps:

5. Due diligence by interested investors

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 16

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 19

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Pitch Deck Business Plan

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 24

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

14. Investments Needs

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Robert . B. Mellor, “Entrepreneurship for everyone: a student textbook”

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 33

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 36

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 38

Apurv Kumar Yadav, Department of Electrical Engineering, IITR 39

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