Everybody can make a success out of a great idea. But with good management even a decent idea can be turned into a successful enterprise. When we, a group of entrepreneurs, decided to set up BOA that brought together entrepreneurs and CEOs interested in investing in a start-up or early stage ventures, we had one objective: we wanted to create an ecosystem that would not only help these start-ups financially but also help them grow and prosper in the long run. This catalytic activity that would bring more into the entrepreneurship fold would in turn create more jobs, more services and a paradigm shift in the attitude of employees.
It was also about mentoring them—share our learnings with these new entrepreneurs in their quest for growth and success. Nikhil Nath’s (see E2E page 68) enthusiasm, passion for the business and vision were almost in sync with our objectives. For us it was a litmus test as it was our first investment in any start-up. We also wanted to extend all our support and did not want it to be mistaken for interference. The risks with investing in Knowcross were relatively less compared with any other start-up. Their product, Triton, was already established and had many takers. Knowcross needed help in expansion and growth. But the element of risk exists in every equity. We can mitigate that risk on the basis of good and planned management. And we helped Nath in hiring senior management staff too. We would discuss ideas, strategies and add value to the project. It was a continuous exercise and we were always there for him.
Start-ups basically need guidance in three areas—management of risk, business development and fulfilling the vision. As entrepreneurs, who have already gone through the rigours of setting up an enterprise, we enjoy a vantage position. We can share our experience with these startup projects. This practical guidance also helps them check their direction. Any investment in a start-up is very exciting but at the same time fraught with risk.
There is a lot that can go wrong thus jeopardising our investment. It is also quite like watching your child grow. Those small successes are similar to first baby steps. The entire process of investing is also hugely satisfying as we watch each venture grow, expand and carve a niche for themselves. For both the entrepreneur and the investor it is a win-win situation. One creates a concept; the other helps it convert into a reality.
But just funding an idea will not ensure a success. Success without hard work is in the realm of books. Customers are supposed to be our best teachers and all entrepreneurs must take a leaf out of them. For Knowcross, too, there is a huge opportunity. It can extend its product to new industries and upgrade its technology. There is a huge market waiting for it to be tapped. We don’t want to run the company or change its direction, but support it on its path of growth and watch it achieve their goals. At the end of the day, both parties should emerge winners.
(By Raman Roy, CMD, Quatrro)
