An Engineer Selling Momos to Building Multi Mullion Dollar Tech Business | Venky B - Plivo | TRS 382
Feb 9, 2024
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In this episode of the podcast, Venky Balasubramanian, the co-founder and CEO of Plivo, shares his journey in the startup world and offers valuable insights for aspiring founders. They discuss topics such as venture capital vs venture debt, raising funds, and the mindset of Indian engineering graduates in America. The conversation also touches on the challenges and successes of running a business, the differences between American and Indian VCs, and the financial benefits of working in India. They also compare different locations like Austin, California, and the Bay Area, and express their admiration for engineers and cricketers.
Venky Balasubramanian, co-founder and CEO of Plivo, shares his journey of starting and making a global business.
The selection process for Y Combinator involves rigorous interviews to test founders' authenticity, clarity, and chemistry.
A cohesive founding team with clarity in roles is valued by Y Combinator, along with progress in customer adoption and revenue.
Y Combinator provides a fast-track education, access to a network of founders, mentors, and investors, and adds credibility to startups.
Deep dives
Overview of Y Combinator
Y Combinator is an accelerator, not an incubator, that focuses on accelerating the growth of startup companies. They select founders and provide a program that helps accelerate revenue, customer adoption, and market entry.
Application Process
To apply to Y Combinator, founders need to fill out a form online that asks questions about their target market, their understanding of the industry, and their unique value proposition. The selection process involves a rigorous interview, where founders are tested on their authenticity, clarity about their business, and their relationship and chemistry as co-founders.
Importance of Founding Team and Progress
Y Combinator values a strong, cohesive founding team. It's important for co-founders to have clarity in their roles and be aligned in their goals. While revenue is not a prerequisite, having a working prototype and progress in terms of customer adoption or revenue can strengthen the application.
Program Experience
If accepted into Y Combinator, founders are required to move to the Bay Area for a few months. The program includes weekly dinners with guest speakers, who are successful entrepreneurs sharing their experiences and insights. The program is aimed at providing a fast-track education for founders to navigate the challenges of building a startup.
Importance of the startup ecosystem
Entrepreneurs emphasize the varied discussions that take place within the startup ecosystem, covering topics such as founder relationships, raising money, and making mistakes. The open and honest conversations create an off-the-record environment where entrepreneurs freely share their hiring mistakes, challenges with people management, and experiences as successful founders. This transparency not only fosters learning and growth but also inspires others by demonstrating that if these entrepreneurs can achieve success, others can as well.
The value added by YC
While Y Combinator (YC) is known for its investments and fundraising support, the core value it provides to startups is the environment and network it offers. Startups that choose to work with YC gain access to a community of fellow founders, experienced entrepreneurs, and YC partners who provide guidance and advice. This cohort-based structure encourages collaboration, competition, and mentorship. Additionally, being associated with YC adds credibility to startups and can open doors to investors and opportunities that may have been difficult to access otherwise.
Considerations for raising money and VC investments
When considering fundraising, it is important to have a clear understanding of the value that VC investments can bring. Seed funding, for example, may be better suited for angel investors or friends and family who can provide not only capital but also hands-on guidance and support. VC investments typically come with certain expectations and timelines, as VCs look for high-growth potential and aim for significant returns on their investments. While securing VC funding can offer credibility and access to larger networks, it is essential to align the objectives of the startup with the expectations and requirements of the VC firm.
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Follow Venky Balasubramanian's Social Media Handles:-
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LinkedIn: https://www.linkedin.com/in/michaelricordeau
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Website: https://www.plivo.com/
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Today on The Ranveer Show, we have a very special guest; Venky Balasubramanian. He is the co-founder and CEO of Plivo, which helps large organizations modernize their business communication. He is the genius of the startup world and is here to share his immense knowledge with all aspiring startup founders.
In this episode, we talked about his amazing journey of starting a business and making it huge in the global market. We talked about B2B businesses, the difference between venture capital vs venture debt, how Plivo raised funds in their initial years, and more. We deep-dived into understanding the workings of Y Combinator and how a startup gains value from it.
This was an honest, business 101 conversation with Venky Balasubramanian. I hope you will like this episode and please share your thoughts in the comments.
(0:00) - Venky Balasubramanian x Ranveer Allahbadia begins
(3:30) - B2B Businesses
(9:30) - Venture capital vs venture debt
(12:00) - Plivo business model
(16:20) - His career path
(22:10) - His childhood
(25:15) - Recovering from debt
(27:10) - China’s work environment
(38:30) - Plivo journey
(42:22) - What is Y Combinator?
(44:35) - How to get into Y Combinator?
(53:55) - Advice to young startups for YC
(55:26) - What happens after getting into YC
(57:40) - What value does YC provide?
(59:08) - What do VC investors look for?
(1:00:15) - Indian VCs Vs. American VCs
(1:03:00) - Seed funding
(1:10:33) - How to ensure investment from VC?
(1:15:40) - Life after Y Combinator
(1:22:05) - Indians moving to the US
(1:27:10) - Life in America
(1:35:55) - Thank you for watching
(1:37:36) - End of the podcast
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