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Showing posts from December, 2015

Is there Any Downside to Active Entrepreneurs Making Angel Investments?

In an article titled "The Curious Case of Entrepreneur-Angels", Santosh Sreedhar of Avalon Consulting and Neeraj Gupta of Excubator explore whether the founders Flipkart, SnapDeal, CommonFloor, etc. should be turning Angel Investors "even as their core venture has still not turned around profits". Extracts:

However, there are a few who believe the trend should not be encouraged as it distracts the entrepreneur from the core business, which in many cases is still not profitable. They feel that even though some of these entrepreneurs have “made money”, many are still to prove their capability to “build businesses”. As one leading VC put it - “Its not a business if its not profitable”. They argue that such investments are bound to distract the entrepreneurs from focusing on turning their core business profitable. Putting a clause in the term sheets restricting entrepreneur investments in outside ventures is not a norm in India or elsewhere. However, disclosure rules …

What went wrong at Avigo Capital? An Analysis of the Firm's Portfolio

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Dr. Lal Pathlabs Signs off a Good Year for Private Equity-Backed IPOs

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Why Does India Celebrate Rahul Yadav?

The reason, according to Sumanth Raghavendra - in his post titled "Why a prize idiot like Rahul Yadav is precisely the kind of startup hero India deserves…and exactly the opposite of the one it needs" - is our "obsession with funding".
First a quick extract from Sumanth's post:

Despite all the buzz around India having arrived as a hot startup destination, there have been precious few aspirational startup exemplars since the halcyon days of  Sabeer Bhatia and Narayan Murthy. A false dawn if ever there was one… Equally tragic is the fact that folks who could potentially be startup heroes—a Sachin Bansal or a Vijay Shekhar Sharma—seem to be idols with feet of clay…either
backing the likes of Rahul Yadav with angel investment to continue this cringe-worthy charade of faux startup-ism or needing him to fill seats at their own events. How I wish the media highlighted the story of a Santosh Panda who has diligently persevered to build Explara over several years with …

Startup Failures of 2015

Techinasia has rounded up a list of 11 startups that gave up in 2015. The list includes

From Foodtech:

Dazo
Investors: Rajan Anandan of Google, Amit Agarwal of Amazon, Kunal Shah of FreeCharge and Founders of CommonFloor, TaxiForSure, and Yo China.

Spoonjoy
Investors: SAIF Partners; Sachin Bansal of Flipkart

From E-Commerce:

DoneByNone
Investors: Seedfund

From HR Tech:

TalentPad
Investors: Helion Ventures

From Hyperlocal:

Townrush
Investors: Lightspeed Ventures

From IoT:
Lumos

Interestingly, Yash Kotak, a co-founder of Lumos, has published a detailed article in YourStory listing "7 Reasons Why My IOT Startup Failed".

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Private Equity Exits Via Public Markets on the Rise

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Private Equity Investments Down For The Fourth Straight Month

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Why do Bill Gurley & Jason Fried Hate Unicorns?

Silicon Valley VC and Benchmark Capital partner Bill Gurley has been calling a bubble for a couple of years now. Gurley explains why he is so concerned with bubbles in his latest interview to Technology Review magazine:
Great entrepreneurs are relatively disadvantaged in these markets where so much capital is available. In a market where capital is hard to come by, they can still raise money. In this market, they can raise a ton of money, but so can a lot of [less capable] competitors that wouldn’t be in business otherwise.  ...Imagine two companies. One is told, “I want you to get to $100 million in revenue and you have to be profitable when you get there.” The other is told, “I want you to get to $100 million in revenue and I don’t care if you lose $40 million getting there.” Which of those two exercises is harder, and by how much? I would argue it’s at least 10 times harder to do the first. Until you can prove that you can generate cash flow, you don’t have a sustainable business.…