Will Indian Entrepreneurs’ Satisfaction with Small Outcomes “Scare Away” VCs to Other Countries?

As we start to invest in the early stage startup ecosystem in India,
it is important to calibrate the possible returns and allocate funds
associated with the returns. If most entrepreneurs in India are okay
with smaller returns, it makes sense for us to allocate fewer fund here
than China, Israel or Africa.

From our experience at the accelerator, where, over the last year we
have “invested” our time, resources and energy in 23 startups, we know
that the risk appetite is much lower among startup founders in India,
compared to those in Israel for example.

We have already had 2 small “exits” and 3 closures in India. Israeli
companies are still out there, fighting for their series A and beyond,
while 1 company had pivoted dramatically in Israel, only to start again.

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