79 – Founder’s Dilemma – 3/?

The next red flag is that the study is restricted to VC funded companies in the Tech and BioTech space. The study does give the disclaimer. But here is what lies beyond the disclaimer.

The Study ultimately has to be monetised into a ‘practice’. It cannot remain an intellectual study for satisfying academic curiosity. The consumers of the study who have money power to buy such consulting services are VC / PEs or companies funded by VC / PEs. The two ‘hot’ sector currently in fashion are Tech and BioTech.  Thus it is a study by and for a narrow segment of the start up world.

Being a narrow focus study is not an issue by itself. What causes the issue is that most start up founders end up thinking that that is the only way to go. The allure of fast growth, fueled by OPM ( Other People’s Money, appropriately pronounced opium ) is the trap that many a start up with long term potential falls into.

By keeping quiet about other possibilities of sustainable consolidated growth, it holds out that fast growth funded by VC money resulting in diluted holdings is the only way to go.

Start up founders would be wise to consider themselves warned that there  exists many alternatives to growth in a stable, consolidated fashion. Not necessarily involving capital infusion and consequent dilution.

About The Author

Venkat is a serial entrepreneur who has exited two start ups to US and UK based buyers and is now on his third start up. He did not set out to be a serial entrepreneur but circumstances in life just went that way. The last Start up of which he was the Promoter Director was the countries largest domestic BPO with 10 offices across the country, employing over 3000 team members with the country’s largest corporates at its clients.

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