The document discusses what it takes to be a fundable venture. It outlines the evaluation filters PVC uses, which include evaluating the team's passion and integrity, whether there is an existing business rather than just an idea or plan, geographical proximity to Delhi-NCR, funding needs, and expected investor returns. It states that the biggest enabler of a venture's saleability and scale is having a scalable team, processes, and structure with strong growth prospects and the ability to absorb significant funding. The document notes that while entrepreneurs may be motivated by developing an idea or gaining employment, investors are motivated by returns and exiting their investment.

1. What does it take to be a
fundable venture?
PVC
partners
Presentation by Devangshu Dutta
at Amity University
9 August 2008

2. Questions put to us
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PVC
partners
Several companies with customer
traction, markets, scale are not funded
– why?
How are startups evaluated?
What can make a venture more
fundable?

3. “How do we evaluate start-ups?”
PVC’s Evaluation Filters
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PVC
partners
Team: passion, integrity, trust
Existing business (not plan or idea)
Geographical proximity (Delhi-NCR)
Funding needs
Return expected by investors

4. Good
=
Fundable
PVC
partners

5. EXIT
SALE
BUYER +
SALEABILITY
PVC
partners
SCALE

6. Good = Fundable
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Biggest Enabler of Saleability: SCALE
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Motivation differences between entrepreneurs and
investors, for example…
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PVC
partners
Scalability - team (not individuals), processes and structures
Strong Candidate for “buy” against “build to compete”
Continuing significant growth prospects at liquidity event
Ability to absorb significant money (due to the nature of the
VC business model)
Attractive returns on initial investment
Entrepreneur: Idea to reality, gainful employment,
money…etc.  LIFESTYLE
Investor: money (return),…etc.  EXIT

7. Pre-Funding Self-Assessment
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Can your venture actually be funded by a VC
or institutional investor?
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Are you willing to part with significant chunk
of the equity, maybe many times?
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PVC
partners
Reality-check on scale (3-7 years)
Capability to absorb and apply funding
Exit capability
“Real” valuation – discounted from publicly quoted
companies

8. However…
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PVC
partners
Non-VC investors may have different
motivations
Find one that is right for you

9. capital
vision
passion
PVC
partners
CREATING
ENTREPRENEURIAL
IMPACT
ON
SOCIETY
w:
http://pvcpartners.in