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  Financing Issues for IT & Software Entrepreneurs  Kaytek Experiences & Advisory Insights |
Consulting
Entrepreneurs
Software
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Financing Issues for IT & Software Entrepreneurs Kaytek Experiences & Advisory Insights |
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Kaytek's Consulting Director has provided regular advisory and mentoring guidance for IT and software entrepreneurs on issues as regards Organizational Scalability, Growth, Differentiation and Financing Strategies. Some of these organizations have impressive profiles across several geographies, technologies and blue-chip clients in different industry / business segments. Our mission is to help them create unique long term differentiated value in the global space based on their current strengths and future vision. Some of our thoughts are given below :  Based on the current and future business revenue streams of a software organization, understanding the following strategies is perhaps a key to it's survival, growth and success : Organizational Scalability strategies based on an understanding of the global competitive landscape for the same. . Global differentiation strategies. Software manpower retention strategies. Proprietary IP (Intellectual Property) development and deployment strategies.There have to be independent benchmarks to support any claims made by the organization in terms of its capabilities and products / services offerings. There would be no difference between 'Indian' or 'global' in IT and software services in the future. |
Global vendors are all offering or positioning to offer global services to consumers wherever. So an India strategy has to be part of a global strategy both for sourcing and markets, as we go ahead. Every space is potentially large enough over the next few years. The challenge would really be in the specialization and differentiation in the talents and consumer market places. Entrepreneurs must ensure dedicated concentration and focus with the appropriate managerial and technical resources. IT and Software Entrepreneurs seeking additional finance and capital ( Angel Investing, Mentor capital, Venture Capital, Private Equity, Growth Capital) Kaytek has some contacts with trusted (both ways) global investing sources with smart capital resources that could possibly meet potential capital requirements for software entrepreneurs. The value-add here is our IT background and knowledge and their confidence in our integrity and approach. In case IT Software entrepreneurs are seeking additional external
capital for further expansion, the following areas are important for consideration : Whether the organization has an Intangibles Assets Management Strategy in place or is willing to consider looking at it seriously. Whether Existing and Marginal
Operational Output / Capital ratios are known. Whether these can be brought to
global optimum levels and can continue to remain
that way at higher business scales and complexity. |
Does Kaytek sign Confidentiality and Non-Disclosure Agreements before vetting proposals ? Kaytek appreciates entrepreneurial concerns as regards confidentiality of information exchanged with us. However, at preliminary stages of discussion, we do not see a need for any confidentiality agreement. Also, whether that can be practically enforced in India is a different matter altogether. If a business idea is vulnerable post- sharing with an external agency, then perhaps it needs further strengthening. However, it is the entrepreneur's prerogative which we fully respect. Our experience is that once entrepreneurs know us well, they work on the basis of mutual trust and confidentiality. As in the past both with our Indian and overseas customers only on the basis of verbal committments, which have been honoured both ways. If entrepreneurs still insist that Kaytek should to sign appropriate non-disclosure and confidentiality agreements, then we would need a copy of the same to forward to our legal advisors and wait for their advice and then revert back accordingly. Entrepreneurs can share whatever non-confidential information they are comfortable with till a stage is reached where the mutual interactions become appropriately mature and trustworthy. Some Related Links -
" Where does money go in a software company ? " |
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