Here is a new blog and a must-read for everyone in the Startup business. Indian Startup Gyaan is from Abinash Tripathy, a very successful Startup guy.
Abinash resigned in Feb 2009 from Zimbra, started his blog and is trying to associate with the Startup scene all over again. It may be noted that Zimbra was acquired by Yahoo! for US$350M.
Abinash is on a mission to communicate and spearhead a different Startup culture with young Indians about the experiences of being a high tech innovator, an entrepreneur and a change agent for the New Modern Developed India.
You should read some of his recent writings, specially the likes of — Building a Kickass Team, where he talked about the talent or rather the lack of it in India.
I really like some of his filters
- if candidate has worked in {ibm|infosys|tcs|satyam|patni… any services firm in India} then move to Trash
- if {MBA | product analyst | business development type| project manager…} then make sure you are absolutely sure that they are not empty suits.
Talent acquisition in India SUCKS! I have tried to work with a number of talent/recruiting agencies in India including the big names and each and every one underwhelmed me. Unlike the Valley where some of the top recruiters understand how to source top notch talent due to their sheer experience working with startups and product companies, the recruiting firms we have in India have ZERO capability to hire quality talent. All recruiting companies simply go and search the popular job boards for resumes and do a simple key word search extracted for the Job Description you provided them and then the only level of filter is a casual conversation with the candidates on their requirements.
His latest article advises Product Startup companies to stay away from Services.
The Indian IT services industry is not about IP creation and works in the wafer thin less than ~20% profit margins zone. Product companies need to develop IP and working on projects does not help as you are generally working on somebody else’s IP. I believe this kills the innovation capacity of startups. Nasscom would like for you to believe otherwise. You should seriously go to Nasscom’s site and start reading their paid research if you believe them.
Abinash says, “if you are going to create a tech startup to build a cool new product or service, then you need to have the discipline to not get tempted by consulting/services opportunities. Stay the course, raise enough money to fund a team that can execute and execute like crazy. The IP you create will ultimately get you the valuation that will make you rich.”
“Services companies are typically valued around ~1.6 to 2 times revenue. The Indian IT services industry is an anomaly compared to the rest of the world and enjoys better valuations as IT Services is what is considered to be the Tech industry in India. This will change rapidly when IP creating technology companies start to grow and succeed in India.”
Recently, he started Paisa, which aims at redefining the Consumer Finance market in India. Visit Abinash Tripathy’s Blog. Be warned, “Startups are not for the faint-hearted.”
