We started our entrepreneurship journey during “a different era” when external funding was not needed and even an apartment could be an office, but investment and marketing is critical for today’s start-ups, Kumar Vembu, one of the Co-founders of Zoho and brother of Sridhar Vembu, said on Wednesday.
Vembu, who has backed the business reality show Startup Singam, through his investment firm Mudhal Partners, said even Zoho may need investment if started today, and it was a very different economy back in the 90s. It was easier to hire and retain talent but today the war for talent is so strong that start-ups will find it difficult to scale without investment, Vembu said. He was speaking at an event organised by Startup Singam.
Vembu, who has been investing in about 15 start-ups through his firm GoFrugal for around 8-9 years, said that after he sold the GoFrugal brand to Zoho, he changed the name of his investment firm to Mudhal Partners. California Burrito, Pick your trail, and Symbionic (an advanced bionic prosthesis) are among the firm’s investments. It has recently also backed Baanhem Ventures, the company behind Startup Singam. Mudhal Ventures is also on the panel of investors who will invest in the founders appearing on the reality show Startup Singam.
Lack of marketing
“Cloud businesses today have become very resource and capital intensive…another reason start-ups fail today is lack of marketing. For marketing you need money,” Vembu said. But at the same time, their focus must not be on chasing valuations but building sustainable businesses, he added. “With Startup Singam, we want to increase the odds of success for start-ups, make it easy to sign up service providers, and connect with partners and investors,” he added.
The business reality show on Wednesday coined a new term for the start-up ecosystem. Urging entrepreneurs to avoid chasing valuations, the Startup Singam team said they intend to help founders become ‘ValueCorns.’ “Success in business comes not from the size of your valuation, but from the tangible value you create for people, communities, and industries,” the co-founders of Startup Singam said at an event unveiling a new branding for ‘ValueCorn.’ Startup Singam added that their platform will offer a holistic support system, including mentorship, guidance, networking opportunities, and educational resources.
The reality TV show has allocated a total of ₹50 crore to support startups, with ₹12.95 crore already committed. Currently in its first season, a second season is also on cards. It counts Zoho, Sangeetha.com and Charles Group among its sponsors.