March 25, 2010

Entrepreneur Vs. VC - mock discussion

Our fella Vikas has a brilliant new idea. So much so that he feels he's gonna make a kill out of it. He's got time with Sunil - head of Crapucash Partners - a VC firm that's been setup to explore 'new opportunities' from India.

Brief on the 2 individuals:

Sunil - IIT, IIM, ICBS, QST, LMN and XYZ. He's 30 and believes he's been there and done that. Twice. His Rolex keeps him on top of his schedule and his iPhone ensures he can update people with his whereabouts in the world. Travel is status for him.

Sunil was with this up and coming investment bank in New York where he was staring at 4 X 30 in screens for 12 hours a day and being paid super well for it. Crapucash partners was formed when his company was 'sold off' for an unspecified amount to GS. With a 0.03% holding - he and his 3 other friends pooled in cash and returned to India with about USD 1 M in their bank accounts. However, because he has the telephone numbers of 300 wealthy folks on the west coast, crapucash partners claims to have a fund size of USD 5 Billion !!

Vikas is a young and energetic geek who's figured out a way of level 5 wifi security through a 5MB patch on any hardware. Enough said.
Let's go straight to the conference room scene where Vikas is about to meet Sunil for the first time.

- - - -

Vikas is entering the conference room and his heart is pounding. He's spent the last 6 months making a presentation in powerpoint that will make Crapucash give him all their money. He's confident but anxious. Time to go...

Vikas: Good morning Sunil sir
Sunil: Good morning Vikas - call me Sunil. In fact in Californeeeya - they kawled me Sun ! Snort snort..sniff sniff

Vikas: ?? (the look is not a look of question - its the look of awe. Vikas just saw the rolex. )

Sunil: So tell me Vikas - what's your idea
Vikas: I have a presentation sir. I mean sunil - i mean Sun - sorry Sunil.

Sunil: Chill man. You seem nervous.

(Vikas just cusses Sunil beneath his breath - of course i'm nervous. Your rolex will pay off my rent for the next 2 years)

Vikas starts his presentation. Sunil is impressed at the speed at which Vikas punched in his username and password. The desktop looks awesome. It's got a nice clean look. Sunil has never seen such a desktop before.

Sunil - man your desktop is nice. What are you using? Does Windows 2007 ship with this theme?
Vikas - Its Linux.

Sunil cringes. Linux ... yuck !

Vikas starts his 67 slider presentation. tick tock...

3 hours have gone by. We're on slide 49.

Sunil: Vikas - this is interesting. But you know we've pretty much maxed out our investments for the year.
Vikas: English please.

Sunil: What i mean is that we have no money to invest.
Vikas: But I dont need much. All i need is INR 80 Lacs. Its all i need to start off my plan.

Sunil: F$(# ! Your investment size is only 80 L? That's like USd 200K. Why didn't you tell me this earlier?
Vikas: I thought i'll tell you about my product and its earning potential. I thought you'll be very excited that my product has a USD 2 Billion market. And we can start off with just USD 200K.

Sunil: Look Vikas. I've been in this for a looooooooong time. And i can tell you that USD 200K will get you nowhere. You need to think big.
Vikas: But you haven't yet heard of my financials.

Sunil: No no - that's not the point. You see - one of the first things they teach you at ...

Suddenly Sunil's phone rings. It's got his child's laughter as the ringtone. Sunil takes the call and steps towards the window with his one finger pointing the sky. Vikas looks on in amazement.

Sunil: ahan... hmm.... ok..ok....cool.... sure... ok ...catchya later man...

Vikas is thinking what can get him to do such cool things.

Sunil: Vikas - i'll tell you what. Leave a copy of your presentation with me. I'd like to spend sometime with it. I think this could be interesting.
Vikas: ok great. (vikas can't contain his excitement. If this goes through - he'll be able to buy a new car)

Sunil: Listen - i gotta rush. Am meeting an old friend for lunch.
Vikas: Sure - thanks for your time.

Sunil: No problem.

Sunil gives a broad smile, takes out his iPhone and quickly dials a number while he exits the conference room. Vikas starts packing his laptop. He is proud and happy. Sunil must have loved the product. Otherwise he wouldn't ask for the presentation.

Vikas believes he's struck gold - at last !


0 comments: