Vijay Anand | The Startup Guy.

The Indian-European Connection… And even the Valley.

Posted on: April 24, 2008

Seems like we are not the only set of folks who are wanting to fix the problems we see around us and build a “sustainable” atmosphere around us. There is a post by Ryan who runs FOWA taking a stance against the Web Mission effort that is getting organized by the UK Government and quite a fair list of heavy weights, including Techcrunch. I think this post is important to observe for a couple of reasons.

The striking similarities that we hear from folks around us in:

1. Thinking that the Silicon valley for some reason offers more opportunities.

2. Europe just like India, in most cases, seems to think that you only get funded if you hit the valley. Atleast we aren’t that bad. We have much more easier access to capital.

3. There are folks like FOWA (Future of Web Apps) who are trying to build a vibrant community of users, developers and startups in Europe, very much like how we are working on the same – with arguments that they have “everything that they require right there”

4. There are also people, most of them, who seem to think that the UK companies should be looking into the valley for users and potential exit strategies.

I’ve been working on a post that shows a snapshot of interaction between startups, venture capitals and the markets from across the globe – the valley, Canada, Australia, Europe and India. You’d be surprised how similar most conversations are. Trust me, things are not so hard because we are in India, neither too easy because we are here. We are just facing the same harsh realities as anywhere else. Perhaps the world is flatterning. Huh! who thought I’d agree to that, so easily!

I’ll leave you with this comment by Phil Bradley in that post, which just gets the message home without any explanations:

“The equity gap between seed and series A that plagues the UK will not be resolved if we can’t demonstrate maturity and ability to build profitable businesses.”

Paul Graham has written a recent article where he is wailing and moaning on the same topic. And I think he lives in the heart of where the action lies.

To Quote Paul from his Article, “I used to think of VCs as piratical: bold but unscrupulous. On closer acquaintance they turn out to be more like bureaucrats. They’re more upstanding than I used to think (the good ones, at least), but less bold. Maybe the VC industry has changed. Maybe they used to be bolder. But I suspect it’s the startup world that has changed, not them. The low cost of starting a startup means the average good bet is a riskier one, but most existing VC firms still operate as if they were investing in hardware startups in 1985.”

That just eerily sounds like the issue we face here.

PS: I haven’t thought through this yet, but I believe this only applies to Internet/Media related startups.

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4 Responses to "The Indian-European Connection… And even the Valley."

[…] last post on Web Mission stirred up a lot of discussion so I’d like to expand on my original […]

I disagree that it only applies to internet+media startups; the equity gap for UK biotech startups is just as evident, due to a lack of investor confidence that they can be profitable and/or exit (the two are inter-related). Thanks for the synthesis of the issues around the point I made

Phil,

Thanks for the comment, but never meant to say that it only applies to Internet+media startups. I knew for a fact that it applied to the startups in that vertical since the scenario was the same globally, but had to think through whether it also applied for non-tech, manufacturing and other sectors.

Vijay

[…] last post on Web Mission stirred up a lot of discussion so I’d like to expand on my original […]

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