Challenges faced by women entrepreneurs
Difference between Angel Investor and Ventures
capital
🔹 1. Definition
Angel Investor:
An angel investor is a high-net-worth individual who invests personal money into
early-stage startups, often in exchange for equity (ownership stake) or convertible debt.
Angels are often former entrepreneurs, industry veterans, or professionals looking to
support and mentor new ventures.
Venture Capitalist (VC):
A venture capitalist is a professional working for a venture capital firm that manages pooled
funds from multiple investors (like pension funds, insurance companies, high-net-worth
individuals). They invest large sums into startups with high growth potential, usually at later
stages than angels.
🔹 2. Source of Funds
Angel Investor Venture Capitalist
Invests their own personal Invests other people’s money via a VC
money. fund.
Limited capital. Large institutional capital available.
🔹 3. Investment Stage
Angel Investor Venture Capitalist
Invests in very early stages—idea, Invests in growth stage—when the startup has
prototype, or pre-revenue phase. customers, traction, and revenue.
Fills the funding gap before VC arrives. Comes in when there's scalability and proven
demand.
🔹 4. Investment Amount
Angel Investor Venture Capitalist
Typically ₹10 lakhs to ₹2 crores (can vary). Can invest ₹5 crores to ₹100+ crores
depending on startup stage.
May join hands with other angels (angel Often lead funding rounds (Series A, B, C,
networks) to increase size. etc.).
🔹 5. Involvement and Role
Angel Investor Venture Capitalist
Often plays a mentor or advisor Plays a board-level or strategic oversight role.
role.
May offer industry connections, Helps with business scaling, financial structure,
product feedback. governance, and next-round funding.
🔹 6. Risk Appetite
Angel Investor Venture Capitalist
Takes higher risks on unproven ideas. Prefers calculated risk based on business
traction.
Accepts the possibility of losing the entire Looks for lower-risk, high-return
investment. opportunities.
🔹 7. Decision Making Process
Angel Investor Venture Capitalist
Quick and informal—may decide based on Formal—goes through due diligence,
personal trust or gut feeling. committee reviews, and legal approvals.
Often invests based on the founder’s Invests based on data, market research,
passion and vision. scalability, and exit potential.
🔹 8. Ownership and Control
Angel Investor Venture Capitalist
Takes smaller equity stakes Takes larger stakes (10-40%) and may seek board
(usually <10%). seats.
Rarely demands major control. May demand veto rights, voting power, and control
over key decisions.
🔹 9. Exit Expectations
Angel Investor Venture Capitalist
May exit during a later VC funding Plans exit via IPO, acquisition, or later-stage investor
round or IPO. buyout.
Flexible with timelines. Has a fixed fund life cycle (usually 7–10
years)—needs return in that period.
🔹 10. Examples
Angel Investors (India):
● Sanjay Mehta – Invested early in OYO, Block.one
● Anupam Mittal (Shark Tank India) – Early investor in Ola, Shaadi.com
● Ratan Tata – Backed several startups including Paytm and Ola
Venture Capital Firms (India):
● Sequoia Capital India (now Peak XV)
● Accel Partners – Invested in Flipkart, Freshworks
● Blume Ventures, Matrix Partners, Nexus Venture Partners
Difference between Manager, Intrapreneur &
Entrepreneur
Product Innovation vs Process Innovation vs
Business corporate
🔷 1. Product Innovation
✅ What It Means:
Product innovation refers to the creation of new products or major improvements in the
performance, features, or design of existing ones. It focuses on meeting customer needs,
solving problems better, or delivering new experiences.
🔸 Types:
● New-to-the-world products (e.g., iPhone in 2007)
● Line extensions or improvements (e.g., adding AI features to a smartphone)
● Repositioned products (e.g., baking soda rebranded for cleaning)
🔸 Real-World Examples:
Company Product Innovation Impact
Apple iPod → iPhone → iPad Redefined entire product categories
Tesla Electric cars with autopilot Shifted auto industry toward
sustainability
Nestlé Maggi with "No Onion No Garlic" Catering to regional tastes in India
variant
🔸 Benefits:
● Enhances competitive edge
● Captures new customer segments
● Drives brand loyalty
● Enables premium pricing
🔸 Risks:
● High R&D costs
● Product may fail in the market
● Consumer adoption takes time
🔷 2. Process Innovation
✅ What It Means:
Process innovation refers to developing new or improved methods for production, service
delivery, internal operations, or supply chains. The aim is efficiency, cost reduction, speed,
and scalability.
🔸 Common Areas:
● Manufacturing (e.g., automation, robotics)
● Logistics & delivery (e.g., last-mile optimization)
● IT systems (e.g., cloud-based ERP)
● Customer service (e.g., chatbots)
🔸 Real-World Examples:
Company Process Innovation Impact
Amazon Use of warehouse robots & 1-click Fast, accurate, cost-effective
ordering delivery
Toyota Lean manufacturing & Just-In-Time Reduced waste, better quality
control
McDonald's Assembly-line style kitchen system Speed and consistency globally
🔸 Benefits:
● Lower operational costs
● Improved consistency and quality
● Faster response to market changes
● Higher employee productivity
🔸 Risks:
● Implementation cost (e.g., new software or equipment)
● Resistance to change by employees
● Disruption during transition
🔷 3. Business Model (Corporate) Innovation
✅ What It Means:
Business model innovation involves rethinking how a company creates, delivers, and
captures value. It may involve changing pricing strategies, customer segments,
distribution channels, partnerships, or even how the company generates revenue.
It answers:
“How do we make money?” and
“How do we compete in this new world?”
🔸 Types of Business Model Innovations:
● Subscription model (e.g., Netflix, Spotify)
● Freemium model (e.g., Canva, LinkedIn)
● Sharing economy (e.g., Uber, Airbnb)
● Direct-to-consumer (e.g., Mamaearth, Boat)
🔸 Real-World Examples:
Company Innovation Description
Netflix DVD rentals → Streaming Disrupted entertainment industry
subscription
Uber Asset-light ride-sharing Created gig economy & decentralized
transport
Razorpay B2B payments aggregation Solved fragmented payment issues for
Indian SMEs
Zomato From delivery to ad-revenue & dine-in Expanded revenue streams creatively
payments
🔸 Benefits:
● Opens entirely new revenue channels
● Disrupts traditional industries
● Adapts business to technological shifts or changing customer behavior
🔸 Risks:
● High uncertainty
● Can alienate existing customers or partners
● Competitors may copy the model quickly
Business Plan and its elements- significant elements
QSR Pro and Cons
The Quick Start Route (QSR) is a practical, speed-driven method of launching a business
where the focus is on getting started immediately—even before having a detailed business
plan or extensive market research. The idea is: get to market quickly, learn fast, adapt on the
go.
🔑 Key Features:
● Minimum viable product (MVP) mindset.
● Fast execution, even with uncertainty.
● Low-cost experiments before scaling.
● Learning by doing, not just planning.
This approach values action over perfection and testing ideas with real users instead of
assuming what will work.
✅ Pros of Quick Start Route (QSR) – In Detail
1. Speed to Market
● Lets you capitalize on trends or gaps in the market before competitors.
● Example: A food startup that jumps on a viral health trend (like keto or millet-based
foods) before it saturates.
2. Immediate Feedback Loop
● Early launch means customers can test, react, and respond to your product quickly.
● You learn what works and what doesn’t in real-time.
3. Reduced Upfront Investment
● Focuses on creating a prototype or MVP with minimal cost.
● Saves money that might have been wasted on unproven assumptions.
4. Agility and Flexibility
● You’re not locked into a rigid plan—pivoting is easier when you’re small and moving fast.
5. Avoids "Paralysis by Analysis"
● Many entrepreneurs get stuck overthinking. QSR forces you to take action and validate
as you go.
6. Motivational Boost
● Seeing your idea come to life—even in a small way—builds momentum and morale.
❌ Cons of Quick Start Route (QSR) – In Detail
1. Poor Planning Can Backfire
● Lack of detailed financial, legal, or operational planning can cause problems later—e.g.,
tax issues, scalability problems, or running out of funds.
2. Inconsistent Customer Experience
● Rushed launches might lead to bugs, poor service, or unclear messaging—hurting
credibility.
3. Risk of Misjudging Market Demand
● If you skip proper research, you might be building something that people don’t really
want.
4. Limited Resources to Recover
● If the quick start fails, bootstrapped entrepreneurs may not have the resources to pivot or
restart.
5. Harder to Attract Investors Initially
● Investors may be hesitant if there’s no solid business plan, brand identity, or long-term
vision.
6. Founders May Burn Out
● Fast-paced execution with unclear direction can be mentally and physically draining.
Entrepreneurship theories
🔹 Theory 01 – Year 1725: Richard Cantillon
● Main Idea: Entrepreneur as a risk bearer.
● Explanation: Richard Cantillon was the first to describe an entrepreneur as someone
who takes on risk by buying at a certain price and selling at an uncertain price. He
distinguished the entrepreneur from capital suppliers, focusing on uncertainty and
decision-making.
● Key Role: Risk-bearing in uncertain markets.
🔹 Theory 02 – Year 1803: Jean-Baptiste Say
● Main Idea: Value Addition through resource reallocation.
● Explanation: Say emphasized the entrepreneur’s role in moving resources from areas
of low productivity to high productivity, thereby creating economic value.
● Key Role: Resource organizer and productivity enhancer.
🔹 Theory 03 – Year 1934: Joseph Schumpeter
● Main Idea: Innovation is the core of entrepreneurship.
● Explanation: Schumpeter introduced the concept of “creative destruction,” where old
ways are replaced by new, innovative ones. Entrepreneurs are seen as change agents
who drive economic development by innovation.
● Key Role: Innovator.
🔹 Theory 04 – Year 1961: David McClelland (Need for Achievement Theory)
● Main Idea: Psychological motivation.
● Explanation: McClelland linked entrepreneurship to the Need for Achievement (nAch).
Entrepreneurs are motivated by the desire to excel and achieve goals. They are
energetic, moderately risk-taking, and driven by power and affiliation needs.
● Key Role: Achievement-driven individual.
🔹 Theory 05 – Year 1964: Peter F. Drucker
● Main Idea: Opportunity-focused entrepreneur.
● Explanation: Drucker defined an entrepreneur as someone who seeks change,
responds to it, and exploits it as an opportunity. He emphasized that entrepreneurship
is more about innovation and strategic action than about resources.
● Key Role: Change manager and opportunity seeker.
🔹 Theory 06 – Year 1985: Karl Vesper
● Main Idea: Behavioral perspective.
● Explanation: Vesper stated that an entrepreneur operates from multiple
roles—economist, psychologist, businessman, and politician. This theory suggests that
entrepreneurship is not one-dimensional but a blend of various behavioral traits.
● Key Role: Multi-disciplinary thinker and problem-solver.
