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"Indian version of Y Combinator" Yeah Right! From the FAQ "When the company is formed we set up a bank account. When the bank account is set up we deposit a
by plinkplonk 17y ago
"Indian version of Y Combinator"
Yeah Right!
From the FAQ
"When the company is formed we set up a bank account. When the bank account is set up we deposit a check for the full amount of our commitment ie. 5 Lakh directly into it. A company secretary is brought in to distribute funds from the company checking account as per the budget instructions. Adjustments to the budget can be made at board meetings. Founders do not have direct check writing control of the bank account."
You need to buy an extra laptop, wait for the next board meeting and/or get approval from the "Company Secretary".
"Founders do not have direct check writing control of the bank account!"
Sounds like a great way to run a startup!
And they have the audacity to call it "The Indian version of YC".
I doubt PG and co sit around approving line items and writing checks every other day! AFAIK they hand over the money at the beginning and that's that.
- known 17y agoPerhaps to prevent rampant Collusion, Corruption and Casteism in India. http://business.rediff.com/report/2009/sep/24/indians-among-most-corrupt-while-doing-business-abroad.htm http://business.rediff.com/report/2009/sep/24/indians-among-...
- plinkplonk 17y ago"Perhaps to prevent rampant Collusion, Corruption and Casteism in India." (If you were being sarcastic, I couldn't detect it in your sentence, so I will respond to it as written. Apologies if I didn't catch the tone right.) yeah sure. When a seed funder decides to spend 10,000 $ on a company after extensive interactions with the team, his first concern is to avoid "collusion corruption and casteism" and so he has to have line item veto ;-) I wonder if PG and co lose their 17,000 $ occasionally to people who just take the money and blow it gambling in Las Vegas? After all they just hand over the money, with no "guarantee" that the team will actually start coding/running a company.
- ajju 17y agoWow. I suppose I have to scale down on my enthusiasm that this will be the first non bureaucratic incubator in India. Freeman, you should reconsider stuff like this. People you have met and qualified as able entrepreneurs, who, in a risk averse society like India are taking the risk to start a startup - do you think they are out to steal 5 lakh Rs? If these are people who couldn't make 5 lakh Rs a year at a job or people you don't trust, you shouldn't be funding them at all. This is a shame.
- superstrings 17y agoFrom what my friends told me, they also ask for a board seat for such a small investment.