Over the past couple of quarters, the news around the startup ecosystem has been mixed. While there are a few positives, there was a lot of news around things not going right. While some of the underlying facts may be accurate, but the interpretation of what that signals is often misguided or misinformed. Or perhaps those are one perspective on what’s happening in the startup world.
In this article, I attempt to present an alternate perspective.
Misconception 1: Investors invest only in consumer Internet startups – food tech, fin tech, ecommerce and delivery
We need to correct our definition of what ‘kind’ of startups different businesses are. Why do we call Flipkart and SnapDeal a technology business? They are formidable retail businesses with very, very strong competencies on supply-chain, warehousing, inventory management and logistics – key building blocks for any large retail business. Yes, they leverage technology significantly.
Likewise, Grofers is as much a brick & mortar business as DTDC Couriers is. Yes, they do leverage technology, but they are NOT an internet startup. Likewise, Swiggy is NOT an internet startup or a food-tech startup. They are a logistics company in the food business.
(Pure play internet startups will be companies like Truly Madly, Slack, WhatsApp, etc.).
There are a number of examples of companies with very little internet / cloud platform dependencies being funded. Mukunda Foods (an automatic dosa making machine) and Vahann are just two examples of non-tech ventures that are funded.