It’s a feast or famine situation in the Indian start-up scene

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From: livemint.com By Parag Dhol
Recommended by: Balaji Pasumarthy
There is plenty for a few and nothing for  most, when it comes to Venture Capital in India.  In this article Venture Capitalist, Parag Dhol shares his candid thoughts on the funding scenario in India. He asesses the ground reality and gives some good advise to entrepreneurs and venture capitalists. My take: The scenario in India is so much better than before, when I started business in 1995, there were only 3 Venture Capitalists in town. It was therefore natural to think of and start businesses which did not depend on risk capital, bank financing and funds from relatives was the way to go. Today 20 years later, Bangalore has become a place where there is a thriving (comparatively) eco system for entrepreneurs. One hopes that Parag's angst will get assuaged in the decade to come and Bangalore is as vibrant an eco-system for entrepreneurs as Silicon Valley is.

Photo: Priyanka Parashar/Mint

 

I recall watching The Truth About Cats and Dogs in the late 90s. The plot revolved around a plain-looking radio show host, Abby (played by Janeane Garofalo), and her attractive friend Noelle (Uma Thurman). The self-doubt about her appearance makes Abby send Noelle, pretending to be Abby, on a blind date with a caller to Abby’s show.

While the twists and turns in the movie were largely predictable, Abby’s insecurities, and their causes, stayed with me all these years. I’m reminded of that plot by events that have unfolded in the Indian start-up scene lately.

It has turned out to be a feast or famine situation. On the one hand, we have a set of businesses that are able to raise gazillion dollars every few months—at progressively higher.....

 

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