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Question for people in the Indian startup scene - It looks to me like the "acquire users first, figure out how to make money later" mindset does not fly in Ind

Question for people in the Indian startup scene - It looks to me like the "acquire users first, figure out how to make money later" mindset does not fly in India in general. Would I be right in saying that such companies are a relative minority? How do Indian VCs respond to this mindset which is acceptable in silicon valley?

manasgarg 14y ago
Yes. Such startups are a minority in India. Barring a few exceptions, VC money in India is available only for companies whose money making model is absolutely clear. That's why the startups that don't focus on making money early on, die out pretty soon.
- aufreak3 14y ago
  Thanks. Any recent examples for the exceptions? PS: Looking forward to this book - http://woodegg.com/in http://woodegg.com/in
  - sooperman 14y ago
    Zomato, on that list, is a living example - http://zomato.com http://zomato.com
    - sudhirj 14y ago
      Not necessarily - they've got branding deals going on, notably with CocaCola and distilleries. I'm sure restaurants also pay handsomely to be featured on the city homepages.
- batgaijin 14y ago
  All those stupid Indians aren't even competing with me for making the next app for sharing niche musical tastes. What suckers!
sudhirj 14y ago
A lot of that is also tied in with Indian culture - the youth here cannot afford to have the let's-try-and-it's-okay-if-we-fail attitude. By their early twenties men are usually expected to have steady jobs by which they can provide for a spouse and a family. A lot of people do want to do startups, though - so they tend to gravitate towards ideas that provide a steady source of income, which will let them fulfil these obligations. Early (and arranged) marriages, social pressure to be financially secure... there's a lot of reasons for this kind of attitude.
- sudhirj 14y ago
  Not to mention that being 'educated' means having at least an undergraduate degree - so there are few dropouts. Leaving college to pursue a business idea is looked upon as an act of extreme idiocy and disgraces your parents / family too.

manasgarg 14y ago

Yes. Such startups are a minority in India. Barring a few exceptions, VC money in India is available only for companies whose money making model is absolutely clear. That's why the startups that don't focus on making money early on, die out pretty soon.

aufreak3 14y ago
Thanks. Any recent examples for the exceptions? PS: Looking forward to this book - http://woodegg.com/in http://woodegg.com/in
- sooperman 14y ago
  Zomato, on that list, is a living example - http://zomato.com http://zomato.com
  - sudhirj 14y ago
    Not necessarily - they've got branding deals going on, notably with CocaCola and distilleries. I'm sure restaurants also pay handsomely to be featured on the city homepages.
batgaijin 14y ago
All those stupid Indians aren't even competing with me for making the next app for sharing niche musical tastes. What suckers!

sudhirj 14y ago

A lot of that is also tied in with Indian culture - the youth here cannot afford to have the let's-try-and-it's-okay-if-we-fail attitude. By their early twenties men are usually expected to have steady jobs by which they can provide for a spouse and a family. A lot of people do want to do startups, though - so they tend to gravitate towards ideas that provide a steady source of income, which will let them fulfil these obligations. Early (and arranged) marriages, social pressure to be financially secure... there's a lot of reasons for this kind of attitude.

sudhirj 14y ago
Not to mention that being 'educated' means having at least an undergraduate degree - so there are few dropouts. Leaving college to pursue a business idea is looked upon as an act of extreme idiocy and disgraces your parents / family too.