When I received the invitation for a TEDx session, I was asked to choose a topic. After a lot of thinking, I came to a conclusion that I should speak on something that can be relevant to most people today. India, today, is thriving with a new wave of innovation and we are seeing more and more founders taking up entrepreneurship and embarking on this tough journey. I chose to speak on current trends of the Indian startup ecosystem and various challenges and hurdles that early stage founders face when they startup, and share my learnings on fundraising over the last few years during which I have been actively involved in funding early stage startups.
I truly believe, with a growing entrepreneurship culture, the startup ecosystem in India is expected to grow exponentially and it will create enormous wealth for founders and investors alike.
India has now crossed the magical number of 100 Unicorns, had 44 new Unicorns in 2021 vs 42 in China, surpassing it for the first time. We have also moved to the 3rd place after the US and China in total number of Unicorns which is a clear sign of value creation.
A trend that has changed in favor of the startups is the exponential increase in investments in terms of funding and the dry powder that VCVs have at their disposal. Startups getting listed is resulting in exits by funds and listing gains. In 2021, VC exits reached north of $14Bn in 2021 with the likes of Zomato, Nykaa getting massive valuations. India has seen $400 Bn+ in valuations across 50,000 startups and the burgeoning ecosystem here is driving a unique convergence of broad-based socio-economic growth across the country.
In a competitive and uncertain market where most startups fail, founders should be careful about the steps they take to launch and should validate their startup ideas. Also, one of the most important things to know is how to translate an Idea into a Business.
Here are 4 questions you need to ask to validate your idea:
1. Is it durable and not just a fad?
2. Is it timely?
3. Is it attractive and has a good ROI?
4. Does it add value to all its stakeholders?
Even if you fit the above criteria, entrepreneurs need to understand that like every startup is unique, so is every VC. However, a strong startup ecosystem in India shows the world that emerging markets are taking the lead in innovation and disruption.
I hope more and more founders find this useful, apply the learnings shared above and are able to secure their first cheque from investors. Initial capital and that too from smart and value investors is a key driver to the success of any early stage startup.
Watch here: 100X Founder & CFO Yagnesh Sanghrajka at TEDx
