Discussed the fundraising frenzy we saw last week on the @OperatorStartup roundup - https://twitter.com/OperatorStartup/status/1381124958470819843?s=20

Few observations:
1. The money is still way less, considering we're the 3rd largest startup ecosystem in the World.

2020 VC $$: Overall = 300B; US = 146B; India = 11.5B

2. While early stage fundraise has increased (# of deals in 2020 increased by 14% to 924), India still needs growth stage capital (Series B, C +) that can help us build truly BIG companies to avoid acquisitions at 100-500M range, like earlier generation of internet startups.

3. There is a LOT of headroom to grow. People forget how big India internet is. Sharechat at 160mn users can acquire another 200-300mn users. So, this money is not 'Exit' but 'Leverage’.

4. Unlike earlier waves of funding, where particular sectors (ecommerce, hyperlocal, etc.)..

...cornered most of the funding. Current rounds are spread across sectors: we had the first healthtech, first social commerce, first infrastructure technology and first epharmacy unicorns. Funds are investing in the INDIA Story. #LongIndia

5. There are valid concerns on…

...burn and mounting losses. But, I would posit that the current crop of entrepreneurs are a lot more mature than the '14-'15 folks.

+ There are newer examples to benchmark to beyond Amazon (18 Qs to profit; $21B net income last year) like AirBnb (6 yrs) and others.

6. The second order effects are real. With ESOP buybacks announced by the likes of Zomato, Unacademy, CRED, Urban Company, and others - a lot of startup operators are going to get wealthy. This capital will find it's way into starting or supporting startups, which is exactly...

...the kind of smart money required by entrepreneurs at the early stage. HUGE net positive. [One of the biggest differentiators between US and India ecosystems.]

7. With as big a domestic market, startups used to ignore global markets earlier. But, the current crop of startups..

..have moved beyond India to SE Asia and US (SaaS startups are virtually global from day one these days).
Given the post-COVID remote reality, you will see multi-decacorn statups in EdTech (Indian teachers teaching students in US / Europe) and more.

So, it's not just money...

...it's also the global aspirations it signals.

8. Bootstrapping v/s Fundraising is an age-old debate and has positives and negatives on both sides. Most of all, it comes down to the founder's temperament.

It's not right to begrudge one over the other. Let people run the…

..kind of businesses they want to. Some of my idols ( @svembu, @Nithin0dha) run bootstrapped businesses and given a choice, my own preference would be the same.

We should glorify building, we should glorify impact, irrespective of whether it's one kind of business or the other.

9. It's the best time to be a consumer, but that also increases our responsibility. Support startups, consume mindfully. https://twitter.com/RoshanCariappa/status/1185933573246709760?s=20

10. Finally, having seen startups over the last 13 years, I'm very optimistic for how things are beyond just the money & resources..

When you talk to young founders like @Rahul_J_Mathur & @NischalShetty, you can't help be that optimistic. This current crop of founders are more ambitious than ever before, & now there's resources and wisdom in the ecosystem to back them up. Good times ahead! #LongIndia

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