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It will be very difficult for an Indian startup to burn money to compete with a US competitor. Considering that the US is a much larger market, the reveneues of
by enitihas 8y ago
It will be very difficult for an Indian startup to burn money to compete with a US competitor. Considering that the US is a much larger market, the reveneues of the US based competitor are simply going to be much higher. For example, Facebook makes $100 per North American user per year. Even if there was an Indian startup starting from India, how would they make similar kind of money? The US is a really large homogeneous market with good enough infrastructure support, that businesses starting from US will always have the revenue advantage over other nations. The only counter point we have seen is the China model, where the Government takes stepes for protecting local companies. Yes, there are some B2B companies outside the US that are doing well, but I can't think of many B2C ones.
- actuator 8y agoAgree with your statement but here I was talking about foreign VCs funding Indian startups because Indian investors don't have the appetite for it. You won't be able to compete with an already established player from US if you do a 1:1 same product. You should try to exploit something that works in the local market like what Line did for messaging in Japan or South Korea.