Myth versus Reality

Venture Capitalists from across the world got together in a hotel next to Shah Rukh Khan's house to seek investment opportunities in the "agriculture space" of India. A seat cost $266, if you wanted to hear them or present your case for funding. We had bought two seats with the "early bird offer". We had put in a meticulously drafted note on our business by the cut off date, which if shorlisted, would be examined by the VCs over a direct discussion.

We were informed, after we reached the hotel from the airport, that five business plans have been short-listed from hundreds of fund-hungry companies. Bhoomi Crop, I was informed, was the first and on top of the list, among the five carefully chosen prospective investee companies. I could not stop calling a few people and sharing our excitement.

Long story short, the VCs spent 300 seconds to hear, understand, make notes, question, comment (or none of the above), on the business plans of not the chosen five, but FIFTEEN more companies in a speed dating format! In the lunch interval of the said conference, I was told by a very apologetic sponsor of the show that kaushik-you-see-we-HAD-to-include-fifteen-more, as if, suddenly, their business plans were worthy.

Finally, we were informed that the VCs are looking for businesses that have a three years profitable balance sheet. What a joke! And these are VCs, we were told before registering, who have come to look at 'start ups' and 'keen on investing in promising businesses in the agriculture space'!

If this is the reality, then why seek participation from startups? Why make a startup pay valuable money on a promise that is a lie?? Just to ensure that tickets are sold?