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Wireless Utopia

The journey towards a free wireless world.

Real Estate and Startups

Monday, January 29, 2007

How are they related you ask? They are. Consider this. Early stage startups need money. In the Silicon Valley, Angels provide this money along with their expertise and help the startup in making a profitable business. Its no secret that the Silicon Valley model does not work in India. First of all you dont have any creditable Angels in India and for those who are there, its very difficult to find an exit. The closest thing you can get in India are the returned NRI's. Those who have worked for startups in the valley and made their money and returned back for various personal or professional reasons.

But getting them to don the role of an Angel is again a difficult proposition. The reason being, real estate. Buying and selling houses is such a profitable business nowadays that everyone is happy just hoarding their cash into a upcoming property, sitting back and enjoying the fruits. The NRI's also prefer to put their extra cash into the real estate. Even the big corporate IT players are doing the same. Ever wondered why no companies in India have a Venture Capital arm? Investing in Real Estate gives them much more returns without the risk.

But things might change. Going by this article in FT, people have started talking about a correction. A correction driven by the high real estate prices in India. I really hope the real estate market crashes. We might then see some more money being put into startups like ours!

Via: Kamla Bhatt's post on the same topic.

Tags: , , , , ,
posted by Rajiv, 2:12 AM

4 Comments:

Operating your own business can give you the best of both worlds. Like all small business owners, you enjoy the satisfaction of being your own boss and being the person who makes the decisions.

BUT..business without finance is like a fish without water in the desert which can’t survive for long.

If you have insufficient start-up fund, don't lost hope! There are companies that provides starup business loans and start-up equipment leasing that are available online. There are also They offer No Down payment,
unsecured business loans
For Start Up Businesses. You can save time and energy if you research/apply online.
Said Blogger ALEISH, 12:09 PM  

Beg to disagree on why Indian IT cos don't have VC arms. Its more to do with the return on the core business than the real estate. Look at TCS for example: very little real estate. Now look at the return on capital employed.
Said Blogger Wanderer, 9:36 AM  

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Buying and selling houses is such a profitable business nowadays that everyone is happy just hoarding their cash into a upcoming property, sitting back and enjoying the fruits.
Yeah, that's a really great way of doing business. If someone wants to start his own business, I can advice business franchise. Buying a franchise is not that difficult, and today there is plenty of franchise business opportunities, so you can choose something you really like.
Said Anonymous Anonymous, 7:06 AM  

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