LESSONS FROM 50 START-UPS THAT HAVE RAISED VENTURE CAPITAL

From solutions that help secure space-trips to online health portal and waste-recycling firm, we again profile a diverse lot of start-ups Srijona Nag  Healthkart, Your E-Health Mart  This 11-month-old start-up has more than 11 reasons to smile. Cofounders Prashant Tandon and Sameer Maheshwari who set up this online ventureHealthkart.com are nowcompeting withestablished pharmacies. The duo returned to India after quitting corporate jobs in the US and were keen to work in healthcare. They worked with doctors and health institutions before launching a consumer-facing unit. HealthKart.com is an online portal where people can find, compare and buy health products. The initial phase was challenging as they struggled to build a good team and find investors. But with a team of four and own savings of Rs 15 lakh, they launched the firm. By April, 2011, they were able to raise $1 million from early-stage investment fund Kae Capital and marquee investor Sequoia Capital.  3 TIPS TO RAISE MONEY  Build a Strong Busines Model with a robust uniteconomics model Focus on Differentiation; be different from the others to add value. Construct the right team VINOD MATHEWS  Founder, Captronic Systems  Captronic to Secure Future Manned Spacetrips  In 2016,when Indian SpaceResearch Organisation will nextferry astronautsinto spacesome partof thesafety of thelaunch vehiclewillbein thehandsof a small venture, Captronic Systems. TheBangalore-basedfirmistesting theinternal controls andexternalinsulation toshieldthe vehiclefrom theintenseheat generatedfrom atmosphericcompression during re-entry intothe earth's atmosphere. Captronicwasfoundedby VinodMathews, an electronicsengineer, almost a decade ago,when theorganisation hewasworking with, PertechComputers,wentbankrupt. Hestarted outwith projectsfrom Aviation firms,Hindustan AeronauticsLtd andNationalAerospace Laboratories.Hebegan scouting for overseasbusiness butsoon realisedhe needed money andsupportfrom outsideinvestors. Mathewsscoutedfor venturecapitalfunding for two years,but many risk capitalfirmsdid notunderstandthisindustry. After lotof difficulties,thecompany raisedRs16 crorein February this year from Forum Synergies(India)PEFundManagers, an Indian privateequity fund,floatedby a group of former corporateexecutives.Forum Synergiesishelping thefirmtotapcustomersin US &Europe andthe company is nowin talkswithEuropean AeronauticDefence and SpaceCompany. Thebiggestchallengefor thecompany was not fund raising but retaining talent.After getting trained atthecompany,theengineerswouldjoin multi-nationalfirmwhichwouldoffer higher remuneration package.Thefirmistackling thatchallengeby offering employeestockoption plan toits employees.TodayCaptronictestsequipmentsfor customerssuch asIndia'sDefenceResearch and DevelopmentOrganisation andTata Motors.The firmwhichisearning revenuesof Rs40crore and has60engineersisexpecting toReachtheRs100 crore revenue markin the nextthree years. 3 TIPS TO RAISE MONEY  Transparency: Be true to yourself. Some consultants advised me to double my future revenue numbers. But it will create trouble, when you have to actually show the performance.  Don't give up too much stake: This is not going to be your last fund raising, you will have to raise more funds in future.  Look for the right partner: Choosing an investor is like a marriage They should jell well with you, which you would realise just in the fi rst meeting Peerzada Abrar NITIN  GUPTA  Co-founder, Attero Recycling Recycling E-Waste for Moolah Magic  Even asthedigital revolution gains pace,theensuing by-product,continuesto get a shortshrift in thecountry. Itisexactly this messthatAtteroRecycling aimstoclean up. The five-year old Noida-based startup, founded by brothers Rohan and Nitin Gupta, handles almost 500 tonnes of e-waste every month. Attero has developed its own proprietory technology that extracts precious metals, including, copper, lead and gold, and also recycles hazardous materials emanating from electrical appliances. "It is a billion-dollar market in India, and growing at 25% yearon-year. Plus, we also get carbon credit approvals for re-cycling the waste," Nitin Gupta, chief executive,Attero, pointed out. The company has set up an automated and integrated electrical and electronic waste recycling plant in Roorkee, and currently services 100 cities across 22 states in the country. "There was no infrastructure in India to handle e-waste. Some precious metals would be extracted using very crude methods, before the entire device was du ed in some scrapyard. I don't think anyone knew the opportunities that existed," Gupta said.  But Attero's business plan has caught the eye of the country's riskcapital players. Thecompany has raised over $10 million from marquee venture capital funds, including,NEA-IndoUS Ventures, Draper Fisher Jurvetson and Granite Hill India Opportunity Partners. Inter-national Finance Corp, the investment arm of the WorldBankhas alsosteppedin as an investor. "We are considering going for our next roundof funding around later this year, or early 2013," Gupta revealed.  But it has not been smooth sailing. A lack of regulatory foresight when it comes to ewaste, and a lack of proper waste disposal practices has made it hard for the firm and to scale. "It's a very niche sector, therefore, getting investors interested, is tough," Gupta said. 3 TIPS TO RAISE MONEY  One can't start off by looking for funding. Get your marketing and operating plans in place first. Don't go for the first term sheet you see. Make sure you do not take too money, too early Biswarup Gooptu