For $500, you won't get decent enough developers.
>> you can hire rockstart developers for $1000 to $1500.
Most of the 'rockstar' developers wouldn't want to risk it in a startup (which could fold out anyday) when they already are making > $1500 a month in that BigCo Inc. Unless equity is put on table for grabs, it's a pretty sad deal actually.
>> India does not lacks investors, it lacks an ecosystem.
Well, aren't investors a major part of the ecosystem? This would be more like the classic railroad paradox. IMHO, only after India sees good number of credible startups with popular products will VCs ever bother to look at India.
Most of the 'rockstar' developers wouldn't want to risk it in a startup (which could fold out anyday) when they already are making > $1500 a month in that BigCo Inc. Unless equity is put on table for grabs, it's a pretty sad deal actually. >> Sorry to add this, but same is the situation in the valley as well. It's but natural!
Well, aren't investors a major part of the ecosystem? This would be more like the classic railroad paradox. IMHO, only after India sees good number of credible startups with popular products will VCs ever bother to look at India. Of course VCs are a good part of the ecosystem but given that India opened a tad too late, VCs might take time to pitch in as much as their western counterparts. Should we not create an ecosystem in the meantime and make as many startups work as possible, with no, low and limited VC funding?
This is why I said most challenging part is building a team.
>> Well, aren't investors a major part of the ecosystem? This would be more like the classic railroad paradox. IMHO, only after India sees good number of credible startups with popular products will VCs ever bother to look at India.
Of course, investors are a part of ecosystem; but we have enough of them already. Many top VC firms already have offices and funds in India. The problem is, angel investors in India aren't bold enough.
Investors does not lead, they follow.
Indian VCs and Angels are not investing in cool weekend apps, but they are keen to fund fast growing startups. Even better,you won't even require funding in India if you have a business model.
Bootstrapping is easier in India, you don't need $110,000 to hire a team of 5. Salary of developers in India usually less than $500 per month, you can hire rockstart developers for $1000 to $1500. So, running a team of 5 would cost around $4,000 per month. Comparatively, the same team size would set you back at least $40,000 per month in New York or Silicon Valley.
I know a lot of bootstrapped startups in India, with profits of over a million dollars. They are literally being chased by VCs, but they don't need investment. The problem with investment scenario in India is, the valuations are much lower compared to Valley.
India does not lacks investors, it lacks an ecosystem. The most challenging part is building a rockstar team.
Wingify / VWO does not have any presence in US. They are based out of New Delhi. At a recent HN Delhi Meetup, paraschopra said that being in India is the biggest advantage they have over competitors.