Google “how to evaluate an idea” and you will get a whole lot of free advice
ranging from identifying target markets and understanding competition to staying
objective using some frameworks.
Seems fairly simple, is it not? It’s not.
That’s the thing - it really isn’t.
Evaluating a business idea is completely different from evaluating a product idea
and having a great business strategy does not translate into having a great
product strategy. A product strategy aligns itself with how you are looking to
succeed in your business strategy.
At FavcyX, we have built our in-house scientific tools to help you navigate from
your idea towards a Product Strategy as well as a Business Plan that maximises
the value from your Product Idea.
But that is far from being all. Let me elaborate on another interesting market
gap that we look to address at FavcyX, towards the latter half of a startup’s
journey with us.
Here goes: so we did some math, and we found out that the average ticket size of
stage investment for tech startups in India roughly ranges around
based on data collected over the last 5 years.
And that made us think about the Indian Digital Startup landscape - is $400,000
really enough for building Digital Products and taking them to market?
Simple maths might suggest otherwise.
Let’s look at the Digital Product costs: a high-quality CTO will roughly set you
back by about $100,000 plus some equity. Add to that a team of 2 front-end
engineer, 1 back-end engineer and 2 UI/UX developers and that should set you
back by another $200,000. With the $100,000 you are left with, try squeezing in
data engineers, dev-ops engineers, data infrastructure, cloud computing costs
and physical infrastructure and you will soon realise the problems of this fund
And keep in mind that this is just Product Development we have covered so far -
we have not even spent a dollar in thinking about any sales and marketing
Wasn’t angel funding all about getting to go-to-market?
And if there happens to be such a wide fund gap, how are digital startups
managing to survive till they pick up more funds? It might be rather bumming for
you to know that startups typically end up taking one of two routes:
Increased returns at lower costs - the sharing economy is all about greater
efficiency and at FavcyX, we are looking to bring that into building Digital
Products. So how does it work?
Route 1: building ‘Jugaad’ products that cannot
If there’s one thing Indian businesses have inherited from their
forefathers, it has to be the wizardry of ‘Jugaad’. Unfortunately, most
Indian Digital Products are built on legacy technology and make-shift nuts
and bolts that render the technology architecture shaky and unscalable. The
result? Should the startup manage to raise funds for the Jugaad Product, a
large part of the fresh fundraise is re-invested in product re-jigs.
Route 2: taking the ‘services’ route to make
start making revenues to pay for the product development.
Probably the tougher path to take between the two, product businesses often
create separate service lines to pay the bills for their expensive product
development journeys - a wasteful process, which makes the business lose
precious time in a startup ecosystem as dynamic as the Indian one.
At FavcyX, we realise that there are many such market gaps that plague startups
in India and we strongly believe that it is almost never only the founder’s
fault when Indian startups do fail. With that in mind, we hope to make a dent in
the stories of at least those startups that are built with the FavcyOS at their