There were some fantastic (short term) success stories – unicorns, amazing valuations, founders as celebrities – with media hype feeding the frenzy.
This craziness had to stop and it is happening. Now is a period of reckoning.
Of course, I am talking about the startup funding ecosystem in India.
After the Gold Rush
So, many were mesmerized; unserious, dilettantes became ‘entrepreneurs’; (some) investors went nuts funding startups with no credible plans or providing growth capital to companies with no real business models.
Some so-called unicorns have imploded or in the process of imploding.
The year 2016 is going to witness a much needed correction in valuations of unicorns or soon be ex-unicorns and startups down the chain at various stages will face the same music.