Thursday, June 28, 2012

ENTRPRENEUR/STARTUP SPECIAL...LESSON NO.1 FROM REAL EXAMPLES


Fuelling the Power Grid

The start-up has been attracting risk capital with Aavishkar investing Rs 18 crore in the firm 

S VENKATESAN Co-founder, Vana Vidyut
From a multinational technology maker to establishing the country’s first biomass plant that supplies energy to the state power grid, has been a transformational journey for Subramanyam Venkatesan Along withco-founders SatheeshGundappa andMurali Anur,helaunchedVana Vidyut thatdrawsbiomassfeedstock from dedicatedenergy plantations. Thestart-up,whichbegan operationsin January,has already attractedsignificantinterestfrom riskcapital players,with social venturefundAavishkaar investing Rs18crore.Thecompany, a subsidiary of TamilNadubasedEnergy Plantation Projects,isin the processof setting up itsfirstsingle megawatt power near Madurai.Next year it planstosetup a 2mw power station. Vana Vidyut already has 300 acresof energy plantations and planstobring in an additional1,000 acreof landtocreateits man-madehigh-density regenerativeforestfor power generation by 2016.Asia’sthird-largesteconomyhasbeen struggling with massive power shortages,with stateutilitiesunableto produce enough power to meetthe growing demandsof itsindustries. Globalinvestors areevincing greater interestin India’senergy sector becauseof thecountry’s rising energy demands,the gap between demand andsupply, and a slewof policy regulationsbeing enactedto meet globalemission norms. The next roundof funding isexpectedtobeby mid-2014, asthe company lookstoexpand geographically acrossthecountry. 

THREE TIPS TO RAISE MONEY
Attract the best talent possible and create a lean and tight operational structure.
Choose the best investor by evaluating their investment track record.
Be flexible. Business plan has to take into account as many operational scenarios as possible.
Biswarup Gooptu

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