Things Ravi Pratap Is Up To - Latest Comments

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Ravi Pratap M — Wed, 23 Nov 2011 01:09:56 -0000

We received FDI as well when we raised angel funding and you have to file a bunch of separate paperwork, which we did, so yes, this is in line with FDI policy.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Guest — Wed, 23 Nov 2011 00:44:39 -0000

Interesting Article! But have checked the validity of this model in terms of Indian FDI laws? Especially if funding is received from non-residents? Most notably para 3.3.2.1 of FDI policy?

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Ravi Pratap M — Fri, 22 Jul 2011 04:01:18 -0000

Well, usually it's a value that's slightly higher than what a Fixed Deposit or CD offers you. That's the easy answer :)

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Jayant — Thu, 21 Jul 2011 09:18:28 -0000

Thanks for sharing your views. How does one arrive at the ''interest rate''? Is there any guidance on interest rate?

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Karthik — Thu, 23 Jun 2011 23:47:48 -0000

Any particular to reason to raise it as debt? Thanks

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Ravi Pratap M — Tue, 21 Jun 2011 01:49:47 -0000

Hi Karthik,

A convertible preference share is still equity, not debt. The whole point was to raise it as debt that is convertible to equity.

Ravi.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Karthik — Mon, 20 Jun 2011 22:14:22 -0000

Hi Ravi,

Thanks for this. Any reason for doing this as convertible debenture instead of convertible preference share?

Cheers!
Karthik

Re: Raising Seed Funding? Use MobStac’s Convertible Note

ravipratap — Tue, 24 May 2011 01:52:28 -0000

You're absolutely right - I've updated the article accordingly.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Pranay Gupta — Tue, 24 May 2011 01:45:22 -0000

Ravi, you will also probably need to remove the line - "And entrepreneurs are unhappy because they gave away a lot more equity in the beginning than they really would have liked to. " - as this doesn't apply in case of a down round.

It would rather apply in a situation where the next round is a significantly high valuation round and hence the entrepreneur feels like he could have negotiated better in the angel round.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

ravipratap — Tue, 24 May 2011 01:37:23 -0000

Ah, good catch Pranay. Thanks, I've updated the article.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Pranay Gupta — Tue, 24 May 2011 01:31:06 -0000

"And entrepreneurs are unhappy because they gave away a lot more equity in the beginning than they really would have liked to." - this is wrong 'cause if it is a down round, entrepreneurs actually gave lesser equity than they should have.

I think the entrepreneurs are unhappy is such case because no one likes to see the value of their company going down.

Re: Raising Seed Funding? Use MobStac’s Convertible Note

Ravish Mishra — Mon, 23 May 2011 14:10:36 -0000

Indeed a great article. The points that you have made in your article will certainly help people to understand the seed round of funding better.
~Ravish

Re: How We Raised Angel Funding in India for MobStac

abhijitgupta — Wed, 27 Apr 2011 18:55:11 -0000

Thanks for sharing Ravi.

Re: A Change of Scenery

Bipin Preet Singh — Wed, 27 Apr 2011 11:41:31 -0000

Like your style of writing.

Re: A Change of Scenery

ravipratap — Mon, 14 Mar 2011 06:56:15 -0000

Thanks, Sateesh!

Re: A Change of Scenery

Sateesh — Mon, 14 Mar 2011 03:58:19 -0000

if i could suggest, there is a happening place for entrepreneurs to get social connections http://therodinhoods.com/. check it out. Hope it helps you in taking your business to next level..

Re: A Change of Scenery

Sateesh — Mon, 14 Mar 2011 03:52:07 -0000

nice article Ravi.. i happened to c your article in pluggd.in and as a co-bangalorean it got my attention and brought me here :) ... hope mobstac breaks new grounds in the start-up history of the country

Re: How We Raised Angel Funding in India for MobStac

ravipratap — Fri, 04 Mar 2011 23:03:06 -0000

Thanks, Sagar! I have a few more posts coming on our experiences in this round as well.

Re: How We Raised Angel Funding in India for MobStac

Sagar — Fri, 04 Mar 2011 09:25:28 -0000

Hey Ravi, that's a very well written article. Wish you all the best with the second round, and more importantly beyond..keep writing :)

Re: How We Raised Angel Funding in India for MobStac

Connectshyam — Thu, 20 Jan 2011 09:12:59 -0000

Ravi, a very good writeup, liked the specifics..A basic question...sorry if it is stupid...lets say you go for a 250k$ funding. How or what thoughts must go in, in determining what you give in return for the funding:
if it would be debt or equity ?
if its debt..at what rate, return schedule ?
if its equity..how much of equity is 250k$ considering your firm..is still in its idea-nuts n bolts phase ?

Re: How We Raised Angel Funding in India for MobStac

Connectshyam — Thu, 20 Jan 2011 09:12:39 -0000

Re: How We Raised Angel Funding in India for MobStac

ravipratap — Tue, 04 Jan 2011 02:19:58 -0000

Thanks, Swap.

Re: How We Raised Angel Funding in India for MobStac

Swap — Tue, 04 Jan 2011 02:09:52 -0000

Proud of you Ravi. Swap

Re: How We Raised Angel Funding in India for MobStac

Ravi Pratap M — Thu, 30 Dec 2010 06:00:00 -0000

Thanks, Kodi. I'm sure you have a lot more data on other matters pertinent to startups in India. We should meet up the next time I'm in Chennai.

Re: How We Raised Angel Funding in India for MobStac

Kodi — Wed, 22 Dec 2010 06:25:48 -0000

Hyper, Very well written. Also, goodluck with raising more money and wish MobStac reaches greater heights -Kodi