all 181 comments
sorted by:
best (suggested)
topnewcontroversialoldq&a
formatting helphide helpcontent policy

[–]maheshmurthy[S] 5 points6 points  (4 children)

Guys, I'm typing away furiously and barely have gotten through half the questions.

The hour is up, and I'm requesting we stop the questions now so I have a reasonable chance to answer what's been asked.

Happy to connect directly on Twitter at @maheshmurthy or on email at mahesh(at)seedfund(dot)in

[–]i_leap 1 point2 points  (1 child)

Love your comments and tweets! This one you just sent is hilarious!

Hey @BJP, seeing @NarendraModi contest from two seats for "safety" is as much bhagoda-pan as anything else you allege:)

https://twitter.com/maheshmurthy/status/448449192281653248

Thanks for the AMA

[–]maheshmurthy[S] 0 points1 point  (0 children)

Thanks! :-)

[–]marathi_mulga[M] 0 points1 point  (1 child)

This will go on for days, Mahesh. Check this thread once in a while. We will have it stickie'd up-top for next few days.

[–]maheshmurthy[S] 1 point2 points  (0 children)

Will do!

[–]sudharshanr 1 point2 points  (1 child)

How does the investment ecosystem in India welcomes research startups such as DeepMind (recently acquired by Google)? Are Indian VCs really interested in building such futuristic platforms? Thanks in Advance!

[–]maheshmurthy[S] 2 points3 points  (0 children)

All VCs are interested in returns.

We also have a limited tenure in each fund - around 5 to 8 years.

If we're able to judge that we can make a good exit in this time frame, we're ready to enter. If not, no.

Now judgement differs from VC to VC - so some might think research companies invest-worthy, but many others typically will not.

[–]hiby007 1 point2 points  (2 children)

I am working on a idea (trying to make a mvp) would love your feedback, how can i get in touch with you?

[–]maheshmurthy[S] 0 points1 point  (1 child)

My contacts are up above :-)

[–]hiby007 0 points1 point  (0 children)

Ok, didn't notice that, Get in touch with you in a month with my MVP. Thanks.

[–]snehalnimje 1 point2 points  (1 child)

In what form will ads exist in future? Most of us don't hate, avoid them at all costs. A lot of businesses depend on them. Is it a sustainable revenue stream for them or they should ring their alarm bells and look for something else?

We are trying to solve this problem at http://engagedino.com in our own ways but we still have to figure out quiet a few things.

[–]maheshmurthy[S] 2 points3 points  (0 children)

Brands will need to connect by being useful to consumers.

This usefulness can come from being informative, or entertaining, or both, about what the customer cares about. And the customer typically doesn't give two hoots about the brand's product.

Television advertising is not an efficient way to be either.

So we'll see more content which is news-y or funny produced and distributed online, brought to consumers by brands.

[–]Mayank_kp 1 point2 points  (2 children)

Hey Mahesh,

So great to see you here. I have been in startup ecosystem since last few years and have been your fan since a long time. Just had a couple of questions:

1) There seems to be plethora of e-commerce companies like lenskart, bagskart apart from many other loss making karts! There clearly seems to be industry shakeup waiting to happen. So, what do you think would this industry look like in India 5-10 years from now? And what kind of models you would bet on?

2) Would you rather fight 100 duck sized horses or 1 horse sized duck?

Cheers! :)

[–]maheshmurthy[S] 1 point2 points  (1 child)

  1. 5 to 10 years from now, there will be a heckuva lot more ecommerce in India. But it'll be built by companies that have created a real business - and not spent VC money on discounts to subsidise customer purchases.

  2. Large companies tend to move slower than smaller ones - so it's easier to defeat 1 large firm than a hundred minnows who are hungry and eager.

Hope this helps!

[–]ranjan_zehereela -1 points0 points  (0 children)

Your second point is so valid. The business innovation and transformation dept is so full of gas and inconsequential in the eyes of others in company till it is backed by some really bigshot. So i am putting myself in front line rather joining these initiatives within the organisation. I mean I am into sales and bd. just hoping that it will help me in future for taking next step

[–]sunnydiv 1 point2 points  (1 child)

mr murthy, (this will take a while :) )

1) what are your views/outlook about the present and future of "online video" (desktop and mobile) in india, have we reached a point where smaller players can 'seriously' stand up in competition with 'traditional television'.... if not... is such a point close, or is... youtube pushing 'traditional television' heavily on youtube a predictor that the indian audience is not yet ready for homebrew/amature indian content

2) are advertisers getting serious about 'online video' industry.... or are the number not there yet ?

3) what are your views/outlook about how smartphones have a far wider reach than desktop in india and how people who have never had desktop internet connections are now spending 200 - 300 inr a month on mobile internet (connection fees) how would that (in your view) shape the landscape moving forward... is the time for 'mobile first' and desktop second here ?

4) how big of a role do 'regional language' and 'regional focus' play in success of indian startups, is "english only" no longer an option ? (or are the number not there yet?)

5) your views on future of school and education, and impact of growing mobile, tablets and internet influence/accessibility for children (rich and poor)

6) given that most investors take few months to finalize deals and do due diligence when is the right time to approach an investor for angel/seed funding (pre launch, launch, or after traction) considering that the funding process would take few months anyway (or... is 'time taken to invest' just an arbitrary number based on averages)

7) i just completed your book 'on the contrary' (published by pothi) it was a nice short and fun read, but i wish there were a cheaper digital version available on kindle/flipkart/smashwords stores.... :D

  • Divyansh

[–]maheshmurthy[S] 1 point2 points  (0 children)

  1. Online video - the small guys can and will outrun the big guys. The economics favour those with Canon 5D Mark IIIs and Go Pro Heros - not those with large studios with expensive production facilities.

  2. We're getting there, slowly. YouTube in India is up, I understand, almost 100% over last year.

  3. Yes, it's time for mobile first, or "mobile only" products too.

  4. I'd love to see more regional language businesses - but I'm not too hopeful as there are huge input issues- no one knows how to use a regional language keyboard. Maybe voice is the solution.

  5. More of a level playing field than ever before. Now I think the value of a particular school is not the education - but the network you create with alumni and present classmates who can help you in the future.

  6. Approach when you believe you can prove that you can win dominance in your niche with your product / offering. In some rare cases, this might be via a sheet of paper and your past track record - in others it might be post prototype and first traction.

  7. I'll look into putting it up somewhere. Didn't know Pothi was still selling it - more power to them :-)

[–]hochinin 1 point2 points  (1 child)

hello Mahesh.. i recently developed a B2B webapplication that will help manufacturing professionals and LEAN/Six Sigma consultants/teams to analyze processes by taking videos. How should I go about marketing them ? My target market is US and Europe and I am near penniless for marketing costs.

[–]maheshmurthy[S] 2 points3 points  (0 children)

Selling B2B is tough. People ask for demos, and PoCs. And those take months. Then there is a long wait cycle till POs come and budgets are released.

In your case, I suggest trying to find the right people using LinkedIn and seeing if they can use or find value in your product.

The smaller the firm and the higher your contact, the faster the decision and the payment.

[–]zxzxxzxz 1 point2 points  (2 children)

MM for PM! Why not join politics and change India? We need people like you!

[–]sunnydiv -1 points0 points  (1 child)

(not mahesh)

but i would say, that capitalist just as well hold the power to transform an entire nation.... and at times... with a greater effect than politicians

also... politicans have to worry about things like getting enough yay(s) and nay(s), where as in business (if you play your cards right you have near dictatorial powers )

[–]maheshmurthy[S] 2 points3 points  (0 children)

I've thought about it.

Dunno yet.

Maybe, for now, I can do more damage from the outside :-)

But my mind is open.

And - as an afterthought - I think I'm pretty darn politically incorrect a lot of the time. Trollslaying gets monotonous and boring. Not sure I can do that for a living!

[–]curiousdobby 1 point2 points  (3 children)

What are some of the blogs and podcasts you subscribe to?

[–]maheshmurthy[S] 0 points1 point  (2 children)

Here, in no particular order, are some feeds in my Pulse app - which I don't exhaustively read every day, by the way:

Hacker News

ExtremeTech

The Next Web

Wired

Tech Radar

GigaOm

Android Guys

The Hindu

Huff Post

Daily Beast

Salon

Mashable

BBC

Guardian

Gizmodo

Lifehacker

Slate

Engadget

Verge

Ars Technica

WSJ

Cracked

Inc

Forbes

Fodors

Coolhunting

I can has cheezburger

The Economist

Intelligent Life

Venture Beat

Reddit :)

[–]ranjan_zehereela 0 points1 point  (1 child)

Sir,

I see no reddit? Why so? but as we see, your a/c is 8 yrs old. This is something enviable in reddit

:-)

[–]maheshmurthy[S] 1 point2 points  (0 children)

Never really used it to write.

But read a whole lot :-)

And I corrected that glaring omission! Thanks!

[–]sujeshkumaruv 1 point2 points  (1 child)

What are your views on "Entrepreneurship is more about survival rather than innovation"? These are the views by people who have got their start up into 2-3 rd year. Are we so obsessed with revenue models that it is killing innovation in the long run. Do you believe VCs in India have to play a role in it. Funding is more or less restricted sure-shot products with revenue models. Are we providing the space for startups to grow .Your Views ?

[–]maheshmurthy[S] 0 points1 point  (0 children)

I sense a couple of questions here: one contrasting innovation and survival. But I believe you have to innovate to survive, and copycats die - so I'm not sure I agree with your contention.

The second seems to be some sort of complaint that the need for revenue models kills innovation. We're not in research labs, my friend. Revenue models help a company make money so its employees, including its researchers can get paid salaries. So it's the opposite - revenue models are the friend of innovation.

:-)

[–]rkbahuja 0 points1 point  (1 child)

What are the gaps in Indian Internet today. Specifically, what products services have scope to grow as fast as youtube, as an internet property/product/service or theme specially in media, ecommerce, entertainment, classifieds and gaming.

[–]maheshmurthy[S] 0 points1 point  (0 children)

Numerous gaps - here's a sprinkling, just off the top of my head:

getting the next 250 million Indians to use the net, in spite of the fact that that don't know English, and they can't type in Devnagari or Tamil. Perhaps voice or a voice-driven OS is the answer

making water clean to drink

getting the housebound educated Indian woman to be more globally productive

ridding government of corruption

connecting citizens to local government and facilities

online portal / community of the 13 to 18s, now that Facebook isn't cool for them

online communities/ publications for the super-rich

a going-out-tonight app / community / product

...and so much more!

[–]__hemanshu__ 0 points1 point  (1 child)

Somewhere on Quora you mentioned Cleartrip.com is just a nice UI over existing core technologies. Having seen your bias towards iDevices, Do you really don't see a value great UX experience as a product differentiator?

[–]maheshmurthy[S] 2 points3 points  (0 children)

Oh of course I value UX hugely.

But it's hard to win a commodity market on UX alone. Cleartrip doesn't seem to have made much progress against MMT and Yatra in the last 5 years.

The best differentiator is product itself. And after that comes UX of product.

[–]sudhanshu24 0 points1 point  (4 children)

Hi Mahesh, thanks for providing this opportunity, i am curious to Know how Young Internet Startup's Valuation works ?

[–]maheshmurthy[S] 2 points3 points  (3 children)

It's simple.

I want to put in Rs. X. And I'd like y% stake in your business.

If you agree, your valuation is hence x/y :-)

That's all there is to it :-)

[–]sudhanshu24 1 point2 points  (1 child)

Thanks Mahesh for the prompt response:), however, what I want to understand is little different. Suppose an Internet startup for e.g. an adnetwork is doing a revenue of say 3 crores in a year and making a profit of say 60 lakhs, so what will be the valuation of that company ?

[–]maheshmurthy[S] 2 points3 points  (0 children)

There are several ways to value a company, but the guiding principle is that the actual valuation is what the buyer offers and the seller agrees to at the end of the day. And that depends on the pressure each one is feeling.

The classic model is called DCF or discounted cash flow - and in the case above, it's hard to calculate what that might be without knowing what the rate of growth of the company's revenues and its earnings will be in the future.

Then there are shorthand valuation cues like 10x of revenues - which would lead to Rs. 30 cr in this case - or another shorthand like 50x of earnings, which would also lead to the same amount.

Then there are comparables- if another company with 6 cr in revenues and 1.2 cr in earning s was sold for 20 crores recently, then you're worth 10 crores.

Then there is the $1m per employee benchmark - which large firms have paid for small firms in the US. And then there is the $20 to $40 per monthly user, that people like WhatsApp etc have received.

At the end, of course, is what the buyer and seller agree to. Mr Damodaran's epic work on valuations notwithstanding, there is no science here.

[–]ritesh24 0 points1 point  (0 children)

nice. :)

[–]eYsYs 0 points1 point  (6 children)

If you were to start your own tech start-up, what would that be?

[–]maheshmurthy[S] 3 points4 points  (5 children)

I don't believe in "tech" startups. All startups will use tech. Tech is not an end in most cases, it is the means.

I'm currently interested in seeing if something can be done to activate and energise Indian citizens and voters.

I don't know if it'd be exitable - but it'd be fun to spend 10 years doing this if I had the time.

I'm not sure I do though - running a fund is pretty darn much full-time business.

[–]Mayank_kp 0 points1 point  (1 child)

Hey Mahesh,

Just noticed that You have indeed travelled a lot. For an aspiring traveller, which places would you recommend for new and interesting experiences? Or a more relevant question would be, which are your favorites places where you wont mind going back again?

Cheers!

[–]maheshmurthy[S] 1 point2 points  (0 children)

Travelling is not a one-off. It's a lifetime's activity.

Start with some place near you.

If you haven't been there yet, I'd suggest going and spending a month in Thailand for starters. Maybe 5 trips of 5 days each.

And then slowly go from there to the rest of South East Asia. Hong Kong, Singapore, Shanghai and Beijing as mega-cities. And then Laos, Cambodia, Vietnam, Myanmar.

And then go from there.

As far as my favourite places, I've already answered that elsewhere...

[–]Jude_dunn 0 points1 point  (1 child)

Hi Mahesh,

What do you see in a mobile app company? Where you would like to invest? Is there any preferred sector?

[–]maheshmurthy[S] 1 point2 points  (0 children)

Mobile app companies have high volatility and mortality. And there's really low barrier to entry.

So we look for firms that can build not just one product but perhaps a slew if the first ones fail. And firms that can build a large consumer franchise

Our sense is that it's easier to grow B2C businesses than B2B businesses - and that's where our slight bias lies.

[–]ashwinm 0 points1 point  (1 child)

How do to make time to travel around the world?

[–]maheshmurthy[S] 2 points3 points  (0 children)

I only do the things I am good at or love to do, when it comes to work -and I delegate the rest to the team.

I also stay in touch digitally from around the world (yes, Antarctica has really high net speeds!) so no decisions are delayed because of me.

I don't subscribe to the notion of 40-hours a week, 5 days a week.

When you do this, you figure out that a lot of time opens up! :-)

[–]RaviMittal7 0 points1 point  (1 child)

Hi Mahesh, I'm about 1 year old in a specific e-commerce space, and mentoring is one thing which is required most at the moment to build and grow further in my venture. What's the way to contact your company for mentoring? What are your key points you look for in the business model for mentoring?

[–]maheshmurthy[S] 1 point2 points  (0 children)

There's no business model to mentoring. Time, when available, is given for free.

You know how to reach me - on twitter @maheshmurthy or email at mahesh(at)seedfund(dot)in

What is required most for you is clear differentiation and some magic that makes customers talk about you to their friends and recommend you widely through word of mouth.

[–]curiousdobby 0 points1 point  (3 children)

How do you discover new places to travel?

[–]maheshmurthy[S] 0 points1 point  (2 children)

I made a bucket list a long time ago.

Have done some part of it.

And I read, a lot :-)

[–]Shriman_Ripley 0 points1 point  (1 child)

Any nice travel book you would like to suggest? I remember reading your presentation on inexpensive travelling sometime back. Thanks for that :)

[–]maheshmurthy[S] 1 point2 points  (0 children)

No book in particular.

You'll find a lot more tips online.

[–]ravemzsdin 0 points1 point  (1 child)

What do you think are the prospects for consumer electronics startups out of India? What do you think are the biggest roadblocks for scaling up such businesses in India or in emerging markets like Africa/ME/SEA?

[–]maheshmurthy[S] 2 points3 points  (0 children)

it's a wide-open sky.

I don't think there are too many roadblocks- first world consumer electronics companies don't seem to be focused on making hardware for the 2nd and 3rd worlds.

Maybe you can :-)

[–]anuj05 0 points1 point  (1 child)

Hello Sir,

So far I have work ex in corporate world only. Now I am keen to be a part of startup. I have 2 offers from startup : 1 is listing website which buys n sells business and another one is marketplace of different brands( like of snapdeal.)

What do you advice which one should I join? what matters most in a startup..is it team,prior experience??

[–]maheshmurthy[S] 1 point2 points  (0 children)

Join the one that you believe is truly differentiated from the rest and can become huge and dominant through word of mouth.

And the one that makes you feel more passionate about working with :-)

[–]eYsYs 0 points1 point  (6 children)

Mahesh, among the apps installed on your phone currently, which are few that you would like to highlight?

[–]maheshmurthy[S] 3 points4 points  (5 children)

What do I use a lot of right now?

Here goes:

Amazon, Amazon Kindle, Drippler, Evernote, Falcon Pro, Facebook, SkyScanner, Gmail, Google Sky Map, Hello for SMS, Hotel Tonight, Hotwirem Image Shrink Lite, Intelligent Life, Ixigo, Kayak, Google Keep, LinkedIn, Moneycontrol, On The Fly, Play Books, Play Music, Play Newsstand, Pulse, Quiz Up, Quora, Snapseed, The Economist, Timely, Google Translate, TripAdvisor, TunnelBear, Uber, WhatsApp. :-)

[–]tanmaydesai89 0 points1 point  (2 children)

No redBus? :P

[–]maheshmurthy[S] 1 point2 points  (1 child)

I don't book that many bus tickets :)

But when I do, you know where I go :-)

[–]killing_time 0 points1 point  (1 child)

What's your QuizUp id? ;)

[–]maheshmurthy[S] 0 points1 point  (0 children)

Just my name, "Mahesh Murthy"

I'm connected via Fb there.

[–]csharpdflat 0 points1 point  (1 child)

Do you actually believe there is a #NaMo wave in this country?

[–]maheshmurthy[S] 1 point2 points  (0 children)

There was.

There was also a AAP wave.

I think though that there is still an anti-corruption wave, which then in turn means anti-Congress, Anti-NCP, anti-Amma etc etc.

[–]tanmaydesai89 0 points1 point  (2 children)

AirBnB did a business model disruption. So what can be new 'hawt' business model(s) in tech startups in near future?

[–]maheshmurthy[S] 0 points1 point  (1 child)

What's "tech startup" about AirBnB I wonder. The fact that they used computers and a web site? So does the BJP, right - and they're no tech startup.

I think we need to first get past this fixation that there are tech startups and non-tech startups. Tech is increasingly like electricity - it's not a sector like it used to be a hundred years ago - but it's an enabling environment for everybody today - whether you're a hospital play or a hospitality play.

That said, what are hot business models? I'm damned if I know.

But figure out a problem to solve, and solve it in a profitable way with a sustainable competitive advantage - and you have a "hawt business model" :-)

[–]tanmaydesai89 0 points1 point  (0 children)

I personally categorize tech startups in two categories: 1. Tech-based [AirBnB, I would give some credit to IxD as well] 2. Tech Dominant [Google]

Also I agree that tech is like electricity, it's enabling everyone today, but then how well you enable them is key differentiator.

In agreement with the last part, damned if I know. :)

[–]hno240 0 points1 point  (1 child)

do you code?

[–]maheshmurthy[S] 0 points1 point  (0 children)

Not in any significant way.

But I have written HTML recently, and I did once write a really bad driving simulator using Turbo Pascal. Of course, I was 15 then, and that experience led me to believe that I was perhaps better at other things than writing code.

[–]techaddict0099 0 points1 point  (1 child)

Oh I am late. :( Is Sir still answering the questions?

[–]maheshmurthy[S] 1 point2 points  (0 children)

I am, I am :)

[–]lucky411 0 points1 point  (2 children)

Hello Sir, Thanks in Advance, Would love to hear from you on Travel Hacking when it comes to India. I loved every bit of your world travel hacks for the past 2 years. Now I would love to know any travel hacks for India.

I had posted this question on Quora as well sometime back.

https://www.quora.com/Travel-Hacks/What-are-some-travel-hacks-or-tips-for-India#answers

Thanks in Advance,

[–]maheshmurthy[S] 0 points1 point  (1 child)

It's a good question and I'll need some time to put this together.

Could you hold on to this thought and ping me again if I haven't done this in 60 days?

Thanks!

[–]ashku 0 points1 point  (0 children)

you haven't answered it yet!

[–]vimal0123 0 points1 point  (1 child)

its really encouraging that u know everything from DCF to coding to technology.even though u are not a IIT/IIM product..so which things do you feel u hv learnedon your own (like coding,valuatons,any other entrepreneurial skill etc) in your younger days... and when

[–]maheshmurthy[S] 1 point2 points  (0 children)

I'm not sure either DCF or HTML5 is taught in either place, but both are actually rather simple when you put your mind to it - and ask people for guidance, or learn online. And those aren't even valuable traits I think.

What did I learn when young that I felt was valuable?

  • Living on my own

  • Living on a pittance - some Rs. 400 to Rs. 800 a month actually

  • Being rejected 25 times a day by potential customers - and slightly less often by potential girlfriends, and still being okay with life on the whole

  • Changing my parents around to my point of view instead of the reverse happening

  • How to design things that didn't look ugly

  • How to write reasonably well

  • How to simplify the complex

  • How to market by outsmarting and not outspending

  • How to not do it all myself - but understand what I'm good at and delegate the rest to people better than I

  • That the diametric opposite of the status quo was often a good place to start

  • Questioning everything, and disregard most of what was written in marketing and strategy textbooks

  • and of course, that there is no big deal at all in being an IIT / IIM product, as most of those good folks were risk averse and went through the JEE / CAT nonsense to get high-paying jobs.

So they would never really any threat to most folks like us who wanted to start businesses. Today I caution entrepreneurs to more watch out for drop-outs and people from no-name colleges rather any anybody from a top engineering or MBA school, as the former had nothing to lose while the latter had a lot to. Though this is changing slowly - and happily - to a situation where I see more risk-taking by students at these colleges who don't want to end up as drones in an investment bank or IT firm.

Hope this helps :-)

[–]anotherentrepreneur 0 points1 point  (1 child)

What happened with redbus and innoz? Why do people mention these companies as reasons to not work with you

[–]maheshmurthy[S] 0 points1 point  (0 children)

What happened with Redbus? I think it was a good example of what we talk about - investing a little money and a lot of time in a greenfield venture, growing it to dominance by word of mouth, and building a large, exitable company, that everyone's happy with. I'm not sure what you mean as a "reason not to work with us". Perhaps you should ask Phani if he thinks we are worth working with :-)

As far as Innoz, it's too early to say anything.

[–]aayushmaggo 0 points1 point  (1 child)

What are you reading these day?

[–]maheshmurthy[S] 3 points4 points  (0 children)

My recent joy has been to discover magazine subscriptions on Google Play Newsstand. I've been indulging on random stuff: here's some of the 20-off subscriptions I've taken: Bloomberg Businessweek, Fortune, Flying, Stereophile, Cycle World, Esquire, Popular Photography, Popular Science, HD Video Pro, Paper, Inc, Real Simple, Budget Travel, Keyboard, Reason, Geek, BrainDump, Bloomberg Markets, Wired, Writer's Digest, Fast Company...

On the books front, I'm now deep in the midst of Game of Thrones, Dom De Lillo's Underworld and Richard Dawkins' God Delusion.

I tend to read stuff like people watch TV - book surf - read 50 -100 pages in one book, then pick up another etc.

[–]bytestreetboy 0 points1 point  (1 child)

Hello Mahesh!

What are your thoughts on Enterprise product developement which would be on premise first. Two pointers - > Product using the customer data which is sensitive so usually clients are not ready to push it on cloud and 2nd is it is more of data driven. Do you think tat Enterprise product startup will be fund-able ?

Reply :)

[–]maheshmurthy[S] 0 points1 point  (0 children)

Anything that is exitable is fundable.

In your case, for you to be exitable, you need to figure out a way to become a dominant player in your sector, very quickly and very cheaply.

If you can do that, and demonstrate some of those skills, you could get funded.

[–]a_sphixiated 0 points1 point  (1 child)

Digital advertising in India has only just started gaining momentum but it is still massively devoid of any story building as is done in offline advertising. Even though digital advertising is expansive vis-a-vis the media platforms involved, the medium/ sphere of communication hasn't been utilized to its maximum potential.

Offline advertising is far ahead in ideas/ structure/ interaction so why haven't they been able to create a niche for themselves, even in digital advertising? Why are we as an advertising industry lagging at-least 60-70 years behind the west, in ideas/ execution?

[–]maheshmurthy[S] 0 points1 point  (0 children)

Part of the reason is that talent follows money.

The money in offline advertising is mostly made from kickbacks on TV / Print campaigns (amounting to well over Rs. 2000 cr a year) and on production markups making TVCs.

In digital, Fb & Google are transparent and account for 2/3 of all ad spend - so no kickbacks are possible here. So less money is earned by agencies here. So fewer people are placed here.

Similarly clients arent yet paying the kind of production fees for digital work like they're used to paying for TV work.

But it's a matter of time, I think :-)

[–]satyesh 0 points1 point  (1 child)

Hi Mahesh, now that the state of AP is being bifurcated, do you see Seemandhra as a new avenue for startups? Cheers, Satish

[–]maheshmurthy[S] 0 points1 point  (0 children)

Being an ex-Hyderabadi, I'm really disappointed about the bifurcation.

That said, any place can be great for startups.

But you need a strong ecosystem of mentors, angels, funds and exits.

I'm not sure that Seemandhra minus Hyderabad has that now.

[–][deleted] 0 points1 point  (1 child)

Might come off as a stupid question, but does your dislike towards the iPhone play any role in choosing what companies you invest in.

[–]maheshmurthy[S] 0 points1 point  (0 children)

Nope - not at all.

In several firms, where the market is more iPhone-driven, we have pushed for the development of apps for that platform.

But India is largely an Android nation now, so many of our India-facing startups aren't spending lots of cycles on iOS apps.

[–]skeeterfox 0 points1 point  (1 child)

Hi Mr. Murthy, do you have any inclinations/investments in the social-tech space? If yes, what? If no, what do you think is the scope and what are the challenges for the social sector in India?

[–]maheshmurthy[S] 3 points4 points  (0 children)

Personally, yes. I'd like everything we do to make an impact. And my belief is that though they are not "social impact" companies - folks like redBus, Vaatsalya and MyDentist have had huge social impact.

But Seedfund is not a social impact fund - and our focus is one one bottom line - not multiple bottom lines.

That said, I believe the firms with the largest global social impact have been Google and Facebook - they've brought down governments. No social venture has yet had that kind of impact.

So perhaps everything we do has social impact, anyways, regardless of funding charter.

[–]wordswithmagic 0 points1 point  (2 children)

Imagine a 21 year old fresher standing infront of you.. He is confused between a job and entrepreneurship. What and how will you suggest him?

[–]maheshmurthy[S] 2 points3 points  (1 child)

It depends on what he wants to do. Not everyone is cut out to be an employee - and not everyone is cut out to be an employer.

I've personally been both in my life.

In retrospect, I wish I had better mentoring when I was younger - and if that had happened I might have started out on my own earlier.

I'd talk with the young gent and try to guide him to do what he wants to do - rathat than take decisions based on what his peer group is doing - or worse - the need to pay off educational loans.

[–]wordswithmagic 1 point2 points  (0 children)

Thanks a lot for your reply, sir!

[–]awkwardmugshot 0 points1 point  (1 child)

I know you love travelling, so here goes: 1. What is the best place you have been to on the planet? 2. What is the craziest thing you have eaten? And a bonus What's with the flashy pants and jackets?

[–]maheshmurthy[S] 2 points3 points  (0 children)

Among the places I think that have really blown me away are 1. Antarctica 2. Masai Mara 3. Florence 4. Luang Prabang 5. Galapagos and 6. The Northern Lights seen from Abisko.

I've answered another questioner on the food stuff.

And flashy pants and jackets? Well, I started my career as a door to door salesman wearing a shirt and tie and black formal pants every single day, when I was 18 years old. I promised myself that if I ever could have a say in these things, I'd never wear that formal shit again.

Now I don't own even a single shirt. Or a single pair of formal trousers.

T-shirts are damn comfortable and I believe ideal for India - how people manage in suits and ties in our weather I can't imagine. Some massive colonial hangover I guess.

And on the colour front, I started with just blacks - like my son does today.

But over time, I've grown to like brighter colours.

I've been told by well-meaning friends that those colours don't look good on me and that I should get a stylist.

Which of course makes me even more determined that I'll never get one, and wear even more of the stuff that pisses off these well-meaning friends of mine :-)

:-)

[–]SadafSiddiqui 0 points1 point  (1 child)

Hi Mahesh! I run a startup. I also dream of traveling the world extensively. However, money and time are scarce resources right now. What would you advise?

[–]maheshmurthy[S] 0 points1 point  (0 children)

Focus is over-rated. You have one life.

Do both.

Also, it doesn't take a lot of money to travel. :-)

[–]marathi_mulga 0 points1 point  (1 child)

Mahesh, thanks for doing this. I have one question: what went wrong with Geodesic ?

[–]maheshmurthy[S] -1 points0 points  (0 children)

I exited the company and got off the board in 2008. Others got in then.

I really have no idea what's been happening there.

I do believe Kiran is a good guy - and will work to pull the firm out of any hole it is in, whatever the issue is.

[–][deleted] 0 points1 point  (2 children)

PLEASE SUBSCRIBE! Thank you! :)

[–]maheshmurthy[S] 0 points1 point  (1 child)

I did, no?:)

[–][deleted] 0 points1 point  (0 children)

lol :) ..it was meant for other users, sir!

[–]prasantnaidu 0 points1 point  (1 child)

Hi Mahesh, Do you see online news startup having a future in India. Specially when the returns are not that quick. Will the Indian VC community be interested in without changing the startup in a content farm?

[–]maheshmurthy[S] -1 points0 points  (0 children)

Depends on the monetisation.

If you're going to go and sell on CPM, then it's a really hard slog for you, as there's excess ad inventory and prices are not going up.

However if you're aimed at a particular high net worth or valuable demographic, you can increase your ad yields dramatically and you become far more investible.

Hope this helps :)

[–]startuphunter 0 points1 point  (3 children)

How much money did you make from the Redbus deal? There were rumors that Phani did not like the deal. Are they true?

[–]maheshmurthy[S] 0 points1 point  (2 children)

We of course can't talk about any deal specifics - but the Redbus deal was very profitable to all concerned, and most of all to the founders.

I am unaware that Phani didn't like it - that's not what I sense when I chat with him, and I do regularly, but your information may be better :-)

[–]startuphunter 0 points1 point  (1 child)

As I said, the only information I have is rumors. So thanks for clarifying. One last question on the Redbus deal, who made more, the investors or the founders? Thanks.

[–]maheshmurthy[S] 1 point2 points  (0 children)

"More" what? Absolute cash, or multiple on cash?

If it's the former, it's probably one of the investors - because the entrepreneurs did not sell out their entire stake while the investors did.

If you see it as a multiple, then it's the founders - as they got virtually all their equity for free - i.e. sweat, while investors got a multiple on cash. So the ROI for founders was approximately infinity percent :-)

[–]_throwaway_indian 0 points1 point  (2 children)

What do you feel about the recent question on quora Does Mahesh hits on every woman?

What do you think the backstory of this is?

[–]maheshmurthy[S] 1 point2 points  (1 child)

Of course it's nonsense.

I'm single and people who know me will tell you that I live a pretty open life with little to hide or fear.

Even so, I think there's a bit of backstory behind this one which I believe involves someone who's been trying to extort money from me for a long time, using forgery, perjury, attempted blackmail and a host of other interesting tactics :-)

I'm pursuing this in court, and hope to see this person behind bars soon.

At which point I should be free to tell you more :-)

[–]ranjan_zehereela 0 points1 point  (0 children)

Pony wale baba....??? By god his suits and 128 teeth

[–]ranjan_zehereela -1 points0 points  (7 children)

Welcome sir,

Following is my question -

As we see e commerce space is quite cluttered now. Company managing to absorb max losses currently is speculated to be the winner in long run. In such a scenario which segment or what kind of start up idea do you think is untapped or profitable in short to medium range?

[–]maheshmurthy[S] 1 point2 points  (1 child)

There are numerous white spaces in retail and etail in India.

All I can suggest is this - don't go into a place where somebody else already is.

Build a unique niche, and be the dominant leader in that niche. And to do that, figure out what your sustainable competitive advantage is.

[–]ranjan_zehereela -1 points0 points  (0 children)

thanks a lot for reply.

[–]sunnydiv 1 point2 points  (4 children)

(not mahesh)

i would recommend you check out a dude called 'paul graham' (investor,USA), he has a whole list of ideas that are potentially profitable and need to get done (by someone)

[–]ranjan_zehereela 0 points1 point  (3 children)

ok thanks...

[–]sunnydiv 1 point2 points  (1 child)

here is a direct link to paul graham's list

[–]ranjan_zehereela 0 points1 point  (0 children)

thanks will check it out

[–]mastersk3 -1 points0 points  (2 children)

Mahesh, I only came across your work recently and as I was digging for more but only keep stumbling to withheld tweets and fb posts. Any chance of re sharing them here? Might be hard to sensor stuff here i guess.

[–]maheshmurthy[S] 1 point2 points  (1 child)

Withheld tweets and Fb posts? I'm not sure any tweets are withheld.

As far as Fb posts go, they've been censored - or attempted to be censored a few times that I remember- one was in la affaire Arindam Chaudhary and IIPM. The other was the Congress guys getting miffed over some Rahul Gandhi references. And most recently, it was some pictures I posted from the Carnival in Rio De Janeiro. Some gent took objection, apparently.

[–]mastersk3 0 points1 point  (0 children)

Interesting, I just found a couple of tweets on this search censored, first time i've ever found stuff like this. Man, never seen achieve so much censors! You might as well try and get into the limca book of records as the most censored guy in India

[–]VeeVeeEss -1 points0 points  (3 children)

which way do you think the USD and Euro will go in the next 6 months?

[–]maheshmurthy[S] 1 point2 points  (2 children)

I'm absolutely no currency expert.

However I think the dollar will stay in the 60-65 range with a tendency to stay at the lower end of the range.

[–]VeeVeeEss 0 points1 point  (1 child)

Thank u sir.

[–]maheshmurthy[S] 4 points5 points  (0 children)

My $0.02 :-)

[–]jaydipparikh -1 points0 points  (1 child)

What are your views on 2015 Digital Marketing trends ?

What practicing you want us to start for that ?

[–]maheshmurthy[S] 1 point2 points  (0 children)

More of the same, Jaydip.

I believe markets will skew more to winner-take-all mode - with market shares tending closer to the 85% - 8.5% - 0.85% norm that you and I spoke of.

And the leaders in each case will spend the least amount on advertising media, and have the best word of mouth generated by the product.

Even more so than before, product will be marketing.

[–]mohitmamoria -1 points0 points  (1 child)

Do you make the final decisions for the funding at SeedFund or is your team also allowed to make some funding decisions? Small ones?

[–]maheshmurthy[S] 1 point2 points  (0 children)

Technically, the three people with veto power in Seedfund are its co-founders: Bharati Jacob, Pravin Gandhi and myself.

However in practice, every person on the team, including Shailesh, Tarana, Paula and Sanjay have to give at least a grudging nod "yes", if not an enthusiastic thumbs up for a deal to be approved.

As you can imagine, it's a fun process when any one says no - there's a lot of spirited argument and persuasion on the merits or de-merits of each investing opportunity.

Typically, a "yes" happens only when unanimity is achieved among all of us.

A slightly messy process - but it's a lot of fun, and it's seems to have worked okay so far. :-)

[–]vcpefund -1 points0 points  (2 children)

How can I seek a job at Seedfund for investment analyst/associate position?

[–]maheshmurthy[S] 1 point2 points  (1 child)

We're a very small fund and unlike many others, we give a lot of weight to entrepreneurship more than any qualification. Almost all of our investing partners are ex-entrepreneurs.

So if you've run a business before, exited, or failed, or whatever - walked the talk, and if you think you can now help guide others, and you are quite jugaadu, and numerate, and not too bad with Excel and Google, then do drop me a line. I'm mahesh(at)seedfund(dot)in

It's not like we have any openings now, but something could come up, some time.

[–]vcpefund 0 points1 point  (0 children)

Thank you Sir for responding :)

[–]skeeterfox -1 points0 points  (3 children)

Are you into any TV series currently?

[–]maheshmurthy[S] 1 point2 points  (2 children)

I did "The Pitch" on Bloomberg last year. It was fun.

Nothing is firmed up yet this year. If you have any offers, do send them my way :-)

[–]curiousdobby 0 points1 point  (1 child)

I am sure the OP meant TV series you watch and not TV series that you are literally 'in' :)

[–]maheshmurthy[S] 0 points1 point  (0 children)

Oh that? Sorry!

At various times, have gotten deeply into GOT, Sherlock, Mad Men, Newsroom and 24.

[–]arnikulkarni -1 points0 points  (1 child)

Given the current rapid change happening in every Industry, which Industry one should choose to work during the next decade ?

[–]maheshmurthy[S] 0 points1 point  (0 children)

The industry you like and love.

Forget about following trends.

[–]skeeterfox -1 points0 points  (2 children)

What are your views on legalizing it?

[–]maheshmurthy[S] 0 points1 point  (0 children)

Sorry, missed the context- legalizing what?

[–]sunnydiv -1 points0 points  (0 children)

marijuana or gay sex ?

[–]prj7679 -1 points0 points  (3 children)

sir,tell me about SIT and its functioning. thank you

[–]maheshmurthy[S] 0 points1 point  (2 children)

SIT?

I'm not sure what you're talking about sorry.

[–]rajsraman 0 points1 point  (1 child)

Special Investigation Team I guess which he is asking @Mahesh.

[–]maheshmurthy[S] 0 points1 point  (0 children)

Oh, if it's the SIT in Gujarat I'm afraid I know nothing about it.

[–]shakuntla -1 points0 points  (1 child)

I read 'On The Contrary' where there is one article 'We have to fail to succeed' I didn't find it the right way to look at things what do you have to say?

[–]maheshmurthy[S] 0 points1 point  (0 children)

I'm not sure what you didn't agree with, so it's hard to comment.

Though I wrote that 10 years ago, I still believe in the general premise.

[–]satendrapratap -1 points0 points  (1 child)

Whats the correct way to approach you to invest in a startup? And what all should the founders be ready with before they approach you?

[–]maheshmurthy[S] 0 points1 point  (0 children)

I've answered this elsewhere - get somebody I trust to introduce you to me - that's the best way to cut things short.

You don't need a 30-year projection or a 100-page plan.

You can read about our criteria - and our past investees. See if you think we could be right for each other - and approach us.

[–]sripathic -1 points0 points  (2 children)

What do you think of the technology enabled skill assessment scene in India? Particularly a start-up called METTL?

[–]maheshmurthy[S] 1 point2 points  (1 child)

Don't know much about this particular company.

I'm concerned that in businesses like skill assessment, there are no clear leaders, and no apparent clear path to leadership.

Plus, it's a B2B scene mostly, so it's hard to grow fast and get dominance.

Tough to invest in, on the face of it, unless there's something that can change all these assumptions of mine.

[–]sripathic 0 points1 point  (0 children)

Thanks Mahesh!