 So, this is a much smaller session in the earlier one and we will try to close as you know sooner, much fewer slides and also more interesting because you will have a different voice speaking after little while this is one of our as I told you one of the incubating companies at our incubator will talk about his experience. And this part is more about you know we talked about mentoring and monitoring earlier in the afternoon and this is the other part of you know as I said one part is to help the entity grow in a protected environment and the other is to take it out you know help the incubated company to go out and reach out to the rest of the world. And one of the things which is what is called networking is what we will talk about. And some of the learnings other learnings that we have and some of the entities that we have to deal with such as venture capital funds and how do we approach and so on and so forth. So, that is the broad outline of what we will discuss. So, you know networking is when the incubating company comes into the incubator most of them are you know especially in our case they are students who passed out a few years ago or maybe have just have graduated or our faculty members who have had little or no interaction with the commercial world outside. And the only way in which you know their entities will become successful is if they have profitable interactions with the outside world. So, the objective is to once their business models are clear once there what they want to do is you know sort of defined then you need they need to start interacting with the external world with their potential clients with their potential partners with their potential investors. So, so that becomes a key part of say for example, at our incubator. So, how do we really do it there are two three different ways of the way we approach it is one is that we invite people to come to our incubator. So, we would invite a venture capital investor to come to our incubator talk to the incubators make the incubators give presentations about their company and then hope that you know the fund finds one of the companies interesting and then move forward. The others to have actual formal relations with Wenchuk funds and angel networks for example, at at sign we have a formal relationship with Indian angel network. So, we we have signed an agreement with them. So, that our company get a faster you know it is a it is a long process. So, we help by this agreement our company is get a fast track into that process. So, eventually hopefully we will get the funding faster and what we have also agreed is that we will get our companies to make even if the companies may not be looking for funding, but they will be allowed to make a pitch to the angel network and get their feedback. So, this is one of the ways in which we try network them into the other is to invite entrepreneurs who have been successful maybe some of them maybe from the same field as the incubator companies to come and speak about their experience and you know their learnings which then the incubators can use. Then there are industrial you know associations such as NASCOM or you know for there are various industry associations for different industries and either go and meet people there or invite them over to our incubator to get to start getting some sort of traction in business development side. So, for example, if a company has developed a product we talk to the computer society of India and say that can we get this product to be tested by your members or for example, with NASCOM we are talking if they can help companies in their marketing of the product in overseas countries. So, those are the sort of interactions we try to engineer through our relationships. So, in our case we have a fairly illustrious alumni many of them are you know entrepreneurs themselves or our venture funds. So, again we try to connect the incubator to these people there is no real formal process to it it is as in when it happens you sort of connect when you meet somebody in the outside world and say hey this company could be of interest to you and then you connect them to them. Also many of us come with you know past business experience. So, that helps having relationships of the past can be used for the companies here. There is no real formal process to it it is fairly ad hoc maybe you know one needs to look at making it more formal in one way or the other. So, just take a little more time on venture capital because as we said that most of early stage companies are dependent for their survival for getting venture funds because before they can get to break even point you know 2, 3 years or 4 years would have passed in many cases and they will need that money for their product development for their marketing expenses for their you know other costs. As you know venture capitalists are looking for high growth companies with which are which can provide them an exit after 4, 5 years. So, that they put in their money at a lower valuation and exit 4, 5 years down the road at a higher valuation and for that again they are not only looking at technology, but also looking at the team which can take the company from 0 revenues to you know 10 million dollar revenues in 3, 4 years time because only then would the company have a value to a potential acquirer or if it grows even faster for you know a public listing when they can exit out of their company. One of the issues that as I said before Indians you know the whole venture capital industries fairly new in India and when a venture capital capitalist comes into your company you have to start sharing power with the fund and there are you know issues which we are still learning you know because when the venture capital fund comes into your company he has certain veto rights that you cannot appoint a person reporting to you without his permission or you cannot spend on travelling without his permission which is outside your business plan. We will probably hear from it little later from the incubator he was here, but there are certain rules governing the relationship between the incubator company or the investor company and the venture capital which means that originally when the entrepreneur could do whatever he wanted to do with his own money he could travel wherever he wanted to or he could you know fiddle around with the business model go to one set of clients not to go to another because he had full control or the founders had full control over the company they will no longer have that control and that is a process which every entrepreneur has to you know who gets invested has to go through to come to terms with giving away certain of his powers to the incoming investor. The value really from a venture capital fund is they have helped other companies to scale up and apart from bringing just the money they provide the experience of helping companies to grow and also they bring in the network to which they belong to. So, there is only a certain amount of you know we are also doing the same thing, but they do it at a far larger scale because many of them are international VCs and then can network companies to you know international potential international clients or partners even people and one of the key things that VCs typically do is to get a professional CEO or a professional head of marketing into your company especially for companies which come from a technology or a product background you know who come from a technology background do not really have marketing exposure. So, they help them to do that. See typically early stage in whether you know angels will take anywhere between 20 to 40 percent of your company. So, there is again there is no golden way of measuring a company's value, but finally you know people work on ballpark figures. So, companies will be valued between say a 4 crores to 8 to 10 crores you know that is the sort of range at which the company will get a valuation and typically the first level of investment will be between 2 to 3 crores may be over a certain you know certain milestones the company is to achieve certain milestones and the money comes in. This is significantly smaller than what you would say a company would get in the US where costs are much higher. So, in India with less money you can invest you know you can invest in more companies. So, that is it of course has its problem because because that is because of this fact that VCs who came into India initially did not want to make small investments because they would end up managing 200 companies with 20 million dollars which they do not want to do because you cannot physically manage 20 you know 200 companies. So, that is why VCs in India who came initially looked only at bigger companies. So, they said we are happy to give out 10 million dollar checks 3 million dollar checks, but not you know 100,000 US or 200,000 US, but that is changing as we saw. So, there are no real parameters. So, essentially they will see what is the potential exit for them say supposing 4 years from now they will sort of make a mental calculation that this company can be sold for say 20 million dollars and I am looking for may be you know 100 percent return on my investment year on year. So, if I am looking at 100 percent return year on year I should invest at a valuation of say 2 million dollars. So, that will become the valuation today or the company is valued at 2 million dollars. So, I invest say half a million dollar and expect that this will at a valuation of 2 million when the company becomes you know 10 million dollars I will get 5 times my money. So, that is the sort of calculation which VCs do it is there is no mathematics to it is just partly a matter of you know a ballpark figure that you will take with less than majority shares in the company and the company needs say you know 2 crores or 3 crores and you will expect if it can potentially lead to you know a 40 crore valuation then you will invest otherwise you will not invest. So, that is how a venture capital funds you know if you look at statistics they have performed better than despite all the you know dot com boom and busts they have performed better than mutual funds. So, mutual funds typically will give you you know say about 15 percent return on your capital whereas, VCs will typically give you may be 20 to 25 percent return on your capital. So, actually smart investors put their money in venture capital funds we spoke about this earlier, but the as we all know entrepreneurs and specially technology entrepreneurs are very focused on their product and one of the things which networking also helps to do is to focus more on the market focus more on the client rather than focus on you know your product and the features of that product what does it do to the client how does it help him to save money is the other thing here is you know we again talked about it earlier that Indians think if my product is cheap because you know we are very good bargainers if my product is cheap it will sell and that is actually a huge stumbling block for many of the product companies going out of India who are trying to sell their product say in OCs markets or even in India because if your product is cheap in terms of cost the perception of the client is that it is also you know lacking in certain features and so on and therefore, it is price cheap it also comes from the situation that because costs are lower in India you 10 you know you would think who is going to buy this product for you know 20,000 dollars, but if a similar product is going out in the global market at 20,000 dollars and your product is priced at 1000 dollars nobody is going to buy your product and that is how you get you know you become a me too product in a crowded marketplace here you know alliances is a key to today's global you know technology marketing if you are not aligned with the you know the demand side of the market in one way or the other if you are not aligned with the key players in the space that you operate it will be very difficult for you to penetrate into the market. So, one of the best ways of for early stage companies to make their first sale or get some is by allying with an existing player as I told you for example, one of our incubator companies has tied up which is promoted by a faculty member here has tied up given away 49 percent of his company to another company which is going to help him in marketing so, if you do not have that core skill within your company you might as well ally with somebody else and you know get it going there is no point of owning 100 percent of something which is not going to sell again this is again a repetition of what we spoke about earlier that you know in India we have too much regulation and here you know ability to go and being going from an academic institution if the incubator company has a problem with say service tax or sales tax it really helps if you can you know help them through the process of saying that you know they are from an academic institution if they have done something wrong take it sort of lightly. So, they do not have to pay the usual costs which other companies have to pay dealing with the regulators I think there is now there is an advantage that the incubators do not have to pay and the incubator companies do not have to pay service tax I think that is one small the other is to also ensure that they are properly aligned with the arrangements that they may have made so that they file their returns on time they you know all the corporate filings are done on time there are no delays and so on because these actually become roadblocks today they may not some important because there are no investors in the horizon there is nobody else looking at your company, but tomorrow there is a global company wanting to do an alliance with you will want to check your accounts will want to see whether you have you know done everything right before he comes and signs on the dotted line. So, some of these small and painful things are necessary to go through also when when VCs come in you know they will really go through your accounts and your corporate filings and the agreements that your company has done with a tooth comb and if you have not you know done it then you could get have problems. It also helps you in the long run in doing all these things being ready to be a good corporate citizen you know finally, if you do all these things and you get into the habit of doing these things which Indians find it difficult you know to do helps you to become a good corporate citizen in the long run. So, this this actually ends the presentation. So, we spoke about you know which model works best in terms of whether it is parent child or between you and the incubating it is a parent child or it is you know teacher student or it is just a purely commercial relationship you collect rent and and wait for your equity to go down you know get liquidation out of your equity is is that you benefit when he benefits and vice versa if if that company does well the incubator eventually in one way or the other makes money. So, you you build a partnership for the for the incubate is progress and not really look at it from a teacher student or you know a landlord and a tenant sort of a situation because if the company does not do well you might have a whole lot of rent payable, but that is that is only on your books you know it is not really cash flow. As we heard in the morning from my colleague pointy that the legal framework both for the incubator as well as between the incubator and the incubating needs to be very well defined many of you know when when a when a incubating comes into the incubator he or she may not have the knowledge to go to understand all the integrities or what what is the agreement, but I think you would do well to get them to read get a lawyer to read it and understand it because later on there should not be any misunderstandings you know coming up later in life and at that point of time since they really their company is really not set up they do not have any revenue sales. So, the the value of equity or the value of what they are signing on to may not seem very big to them, but suddenly that that small company becomes 10 million dollars then 1 percent is a lot of money and and and lot of problems occur between you know incubating incubator there are two of them here. So, I will be careful, but you know problems do crop up because of you know because the value of the company changes drastically over a period of time is that thinking big you know build a scalable business model which can which you know not be restricted by what others have done so far and look at and I think the last bit is and lot of people who visited our incubator both VCs and entrepreneurs have said is to maximize the exposure you know the idea of the incubator is to protect them from the environment, but at the same time you have to maximize the exposure of in this protected environment to the outside world because that is that is a lot harsher and it is and that is where they have to be eventually. So, if you if you try to protect them and keep them in inside the you know academic institution they will sort of get complacent and be comfortable and not really want to try out things and really not know how tough the world is outside. So, any questions good. So, I will ask Kaushal with the founder of a company called Coalcraft which has a group collaboration software he will talk more about it and his experience from the incubator is possible. Just one real quick thing. Yeah. Just one real quick thing. Exposing people and exposing people to successful entrepreneurs due to do you try to arrange mentoring relationships like ongoing mentoring relationships where it is mostly like bringing somebody in to talk for a couple of hours is more about one time. Yeah, in general it is the second one that is we get people to come and talk for a few hours and so on. In particular cases where we feel and the company also it has to eventually be mutual the incubator also feels that that is an area where he needs external support then we encourage them to find a mentor who would come and spend a certain number of hours per month or per quarter with the company and provide certain specific deliverables and for that we have an equity model where the mentor gets a certain equity of the company.