The secrets of success: Indian entrepreneurs rely on the IndUS network for inspiration, advice and money

Chief Executive, The, Oct, 2005 by Kim Girard

Let 1,000 Entrepreneurs Bloom

Sitting in a circle at TiE's headquarters recently, a group of TiE's past presidents banter enthusiastically about the new generation, many of whom are choosing to stay in India, where entrepreneurship is exploding, instead of hopping on the first plane to Sunnyvale. To the right, there's Sridhar Iyengar, a former KPMG partner who directed the firm's operations in India. Iyengar says he sees more than 100 hopeful entrepreneurs a year. Out of that 100, he'll actively mentor 5 or 10 and commit many hours of his time to a couple. He's invested in a dozen companies right now, though he doesn't sit on any boards. Next to Iyengar is Kanwal Rekhi, who sold his computer networking company Excelan in 1989 for $200 million to Novell before becoming its first Indian CTO. Since 1995, Rekhi, an outspoken critic of discrimination against Indian entrepreneurs in the 1980s, has seed-funded 53 companies, including a $1 million investment in Exodus that was worth $130 million by 2000.

Suhas Patil, who sits in the middle of the group, is the soft-spoken grandfather of this organization. Patil, who was TiE's first president, founded semiconductor maker Cirrus Logic as Patil Systems in 1981 and is considered a Silicon Valley icon for revolutionizing the way computer chips are made. Aside from his board seat at Cirrus, Patil sits on two boards today, both which typify the new startup, splitting their work force between Silicon Valley and India: Mountain View-based software maker Digite, which develops its products in Mumbai, India, and Sunnyvale-based Cradle Technologies, which makes semiconductors for multimedia applications and develops products in Pune, India.

Like all TiE presidents, Raj Jaswa, who co-founded Selectica, a software maker that boasted one of the hottest IPOs of 2000, spent a year shadowing the outgoing TiE president to learn the ropes. Jaswa, who is TiE's current leader, works with a $1.5 million annual budget spent largely on conference planning and running the office. He meets with about 15 young entrepreneurs a month. These mentoring sessions are offered to all 1,500 TiE members. Whether you want help refining a business idea, help with career planning or advice on how to grow your company, Jaswa says, "You get an hour face-to-face a year."

Aside from providing mentors, TiE hosts entrepreneurship classes, a bargain at $25 per session. These classes teach young engineers how to build business plans, get incorporated, raise money and build a team. "It's a mini MBA done in a very Silicon Valley style," says Jaswa, whose Silicon Valley chapter hosts 20 to 25 of these sessions per year. "The difference (between TiE and an MBA) is not only do you get pointers about business but you make contacts. The Rolodex is more important than what you know."

Hotmail's Bhatia benefited from TiE's Rolodex in 1995, when he was introduced to Farouk Arjani, a limited partner at venture capital firm Sequoia. "I said, 'I have an idea for a company. Is it OK if I send you a business plan?'" Bhatia says. Arjani gave him his home number and served as a sounding board for the 27-year-old engineer, helping him fine tune his business plan and find venture funding.