Startup Ecosystem in Kolkata: Lack of Funding

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There is no risk capital available in Kolkata.

This is a refrain that I have heard before many times: there is no risk capital. There is no venture capital. There is no Angel capital. There is no seed capital.

The truth is, in the Valley, most funding goes to validated businesses that are bootstrapped by founders. Or to repeat entrepreneurs with a significant track record of success.

Does that mean first time entrepreneurs don’t succeed in the Valley? They do. Because they bootstrap to fundability.

As such, this lack of risk capital refrain is simply an excuse not to get moving.

When I helped Freshworks get funded in 2011, it was a bootstrapped startup from Chennai.

Chennai, at the time, was a relatively weak startup ecosystem. But we managed to get the company to full validation => paying customers. We did a lot of work on TAM analysis before approaching investors. The VC money came from Bangalore.

THIS is the lesson I want Eastern India to internalize: Bootstrap First, Raise Money Later.

If you can build a fundable startup, Bangalore, Delhi, Mumbai are only a short plane ride away. 

It will not be that difficult to get yourself funded.

So please try to understand how investors think.

Whether you are doing a startup (or mentoring a startup) in Bangalore, Buenos Aires, or Palo Alto, this basic principle applies.

To help establish common ground on this subject, below is another series of Udemy courses with discount coupons. Investors will tell you how they invest. Hear it in their own words.

VC Due Diligence Questions For Startups With Sramana Mitra

Alternatives to Unicorn Chasing Investors with Sramana Mitra

How Pre-Seed Investors Think About Startups with Sramana Mitra

How Seed Investors Think About Startups with Sramana Mitra

Post-Seed and Pre-Series A Investors on Startups with Sramana Mitra

How Seed Investors Think About Deep Tech with Sramana Mitra

How Investors Think About Startups in India with Sramana Mitra

How Investors Think About European Startups with Sramana Mitra

How Investors Think of Startups in Latin America with Sramana Mitra

How Investors Think About Startups in the Midwest with Sramana Mitra

How Women Investors Think About Startups with Sramana Mitra

Photo Credit: ARJ from Pixabay

This segment is a part in the series : Startup Ecosystem in Kolkata