Semi rant incoming structured in 3 points
- "Job creation": I don't buy the argument that these startup jobs wouldn't exist without VCs. If there's potential, talent, and regulations in place money will find a way to fund projects that produce a return.
But this very sentiment is what I don't get about VCs, they're not solely responsible for creating the ecosystem. Even if they are, what ecosystem have they created? An over worked, over stressed and over funded world which is not really innovative.
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Forgetting the venfrure in VC: 90% of VCs have forgotten or don't understand the venture part of VC, they just back slightly above average risky business in the hope of getting extraordinary returns. Most VCs hoping on podcasts and talking disruption and innovation have done piss poor to fund something other than what are Western clones of startups in India.
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Much noise, little signal: Some VCs are genuinely game changing for the entrepreneur but my view is they understand their role as a middle man money manager and stay out of the limelight and instead focus on the entrepreneur. But they are literally 1 in a 100.
Also what is this we are a young ecosystem Argument mean? It's as mature (been through at least one 15 year cycel) in terms of talent and experience as any other ecosystem. Nobody expects a Google from India, just a decent return that's sustainable for the ecosystem but the fact you need an American firm to buy an unprofitable business in Flipkart to produce most of the returns in the ecosystem is telling not just about VCs but the startup entrepreneurship in India.
Bitter Conclusion: Maybe I'm naive and I'm not founder material or whatever but I think overzealous VCs and misguided entrepreneurs have ruined a generation's health and wellbeing in trying to get outsized returns for wealthy people.
