Think big and raise capital early: Fractal's Srikanth to entrepreneurs
MUMBAI : The initial days of starting up are never easy for any founder. And they weren't easy for Fractal Analytics' Srikanth Velamakanni either. The company, which had been toying with artificial intelligence (AI) long before it captured the imagination of entrepreneurs around the world, became a unicorn or a company with a billion-dollar valuation in 2022, nearly two decades after its inception.
Velamakanni advises founders today to seek capital earlier than later. "Most companies don't go out of business because they have a bad idea. They go out of business because they've run out of money...so, capital gives you that survival advantage because you'll fail multiple times." Also, according to him, it is better to have a small stake in a large pie than a large stake in a small pie.
“I will tell any entrepreneur: Raise capital earlier than later. Again, you will get contrary advice from multiple people; I would say capital helps you prolong the journey and gives you multiple shots at success." In an interview with Mint, the IIT-IIM graduate recounts his 24-year journey as an entrepreneur and what inspires him as the company prepares for its next phase of growth. Quite the contrary.
I grew up in a small town in Assam. My father worked for an oil company, and I was certain I would always work for other companies, never as an entrepreneur. There were two main reasons: First, we came from a middle-class family; we didn't have that much capital to start a business.
I assumed you needed significant capital to start a business, which we didn't have. My second assumption was that there was no such thing as an "honest businessman"; that it was an oxymoron. My dad used to say that, and it was something I was not comfortable with.
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