Imploring VCs to show patience in order for the Indian startup entrepreneurs to delve deep into local Indian problems and create solutions that deliver value to the customer, K Vaitheeswaran kickstarted the 18th annual Asian Venture Capital Journal (AVCJ) India Forum in Mumbai yesterday.
Vaitheeswaran, widely hailed as the father of Indian ecommerce having founded the country’s first pure-play online retail company Indiaplaza.com in 1999, stressed upon the fact that VCs can help entrepreneurs with much more than just bringing capital to the table.
K Vaitheeswaran was speaking to an august gathering of private equity investors, VCs, corporate financiers, risk insurance carriers and brokers, investment banks, management consultants, accounting firms and due diligence providers at the 18th annual AVCJ India Forum. Vaitheeswaran stated, “As the startup ecosystem matures, VCs play a very important role. At a primary level, they bring in capital which allows ventures to scale. But in my view, they bring something more important to the table. And that’s their ability to have a global perspective having dealt with businesses and startups worldwide.”
He further added, “I have a feeling that in India, the second one has been less valued than the first. I think the entrepreneurs are to blame because they are so hung up about raising money, I am not sure they work well enough with the VCs to get values from the VC on the second count.”
He believes that it’s more important that entrepreneurs extract more value from VCs beyond the capital. There is so much knowledge lying on the table but mostly entrepreneurs are happy taking just the money.
To make this far more valuable and useful, he said that the VC and investor community needs to step up and tell the entrepreneurs that there is a lot more available beyond the money.