Bangalore Open Coffee Club on 29 Mar 2009

Reached Zeo Coffee Shop by 10.10 AM (late by 10 min) by the time I entered the event has started… Not sure if there was a welcome note and self intro session…

 

The time I entered Mr.K.Ganapathy Subramanian guest speaker and a VC was already addressing the gathering… He shared many points and these are some of my take aways

1. Explained about LP (Limited Partnership) & GP (General Partnership)
2. How to approach a VC…
3. How Due Diligence delays a funding process (This session had a debate)
4. How VC’s calculate their ROI

Then after the session was over Vaidhy (Founder of Chennai OCC, which was the first OCC in India) was asked to give a small pep talk and then it was networking time and I networked with some people… Unlike Chennai OCC (Which I still believe is better)… Bangalore OCC is organized and I must give full credits to Kakoli Das for her moderation skills, she brought back things back to the point when ever the topic was diverted…

 

Before wrapping I want to give a brief on take away points in details because it enlightens me;

 

How to approach a VC: KGS recommends to get linked with companies which were funded by VC to get linked with those VC… The reasons given by him made sense

 

1. VC’s get lots of enquires and changes of our proposal getting lost or delayed in the stack is more, so if we move thru a known source chances of getting a quick review is high…
2. Person who had got a VC funding would have his own learning’s which will help us to avoid reinventing the wheel again…

How VC’s calculate their ROI: He said VC’s distribute their risk by investing 10% of the capital to companies which effectively means they will be investing with at least 10 companies… Let us assume for an example a VC firm has following;

 

Capital: Rs.100

Expected ROI: 20% of capital

No. of investment: 10 companies @ Rs.10 per company

 

Now here is the assumption or thumb rule

 

1. 5 companies become bankrupt.
2. 3 companies are average @ 5% each.
3. Then how much the other 2 companies must perform to reach the yearly target of making 20% of the capital…

 

Formulae =

(Total Investment X 20% ROI) – (Investment A X 5%) – (Investment B X 5%) – (Investment C X 5%) = ROI expected on other 2 companies

These were some snaps which I took when the event was happening… 

 

One with blue shirt is Mr.KGS…

 

Full gathering…

 

To know more about Bangalore OCC visit:

 

Blog: http://bangaloreocc.blogspot.com/

Twitter: http://twitter.com/occbangalore

Ning: http://bangaloreopencoffee.ning.com/