If you are looking for funding, you may have to wait for some time. I was in touch with some of the biggest names in Indian Industry recently. And most of them aren’t very motivated about investing in new ventures. The reason is the economic slowdown and the un-certainity prevailing in the markets. The deals which would otherwise take 2 – 3 month, may now take well over 6 months. The PE funds are re-negotiating with companies. Enterpreneurs are under pressure to offer growth strategy.

Indian companies are feeling touch times due to difficult credit approvals. Indian companies were earlier happy to raise funds from overseas, but its not possible in the current scenario. Indian Financial institutions and banks aren’t a good option due to high interest rates. Even RBI has directed banks to keep their hands tight for new project financing.

Mr. Mohanjit Jolly, ED, DFJ India, in his recent article, said that the startups shouldn’t argue about values right now and should take the cash which they are offered. As per my view, this strategy is very accurate. Enterpreneurs should consider one very important factor. The survival in grim economic environment should be the main aim. If you aren’t able to survive the tough times, you may not get even the valuation you have been offered now by any VC or Private Equity partner.

Second very important point discussed by Mr. Jolly was that startup companies should cut their costs right now. Cut them as soon as possible and focus on employees offering the best value for the money you spend.

So, unless you show the money pouring to the investors, you can’t get funded. Innovative ideas should get a good response, however the money part is the most important in current situation.

This is the time when Men will be differentiated from Boys. So, plan the things and go try to reach the goals. Set reasonable goals and work hard towards them. Stay in touch with people in your industry. If you get offer for any stake offload, consider it seriously and you will succeed.