Why the Current Indian Startup Ecosystem is a SCAM | Rajiv Talreja ft. @rajshamani

so I I'll give my unfiltered honest version okay I think what's happening in the startup ecosystem today is total why yeah the fundamental of business will never change business is always going to be a value creation exercise what they've made it today is a circus of valuations let's face it today a guy who's investing in you knows who is going to bring on board as a next round investor yeah right I won't name it but I've had some of the biggest VC houses in India heads who've told me Raji abroad says the guy is able to get a meeting with me if he's able to research it or getting a meeting with me I'll pump money foreign Investments are being celebrated I'll show you entrepreneurs who make 50 lakhs profit a week I think they deserve to be celebrated because they for a guy to make 50 lakhs profit a week he needs to have delivered that much value that the market is willing to pay him yeah foreign okay well look it's become a circus yes okay it's the cool thing to do right now true okay that's so true right so we are living in a circus environment and yeah there can be arguments but isn't aren't we booming entrepreneurship as a culture in India okay and we creating wealth for uh the the team members who are sticking and building a venture yes you are okay but is your hit ratio better than a traditional business it's definitely not traditional businesses have a better hit ratio msmes provide 75 percent of the employment of the country they create they pay more taxes these guys learn how to evade tax in Singapore company register golden card tax evasion okay startup India which India is growing over here the real India is on the streets my friend the real India is in small businesses in homes turned into offices it's not in plush uh co-working spaces that's not real India so let's not let let's let's put the truth out for the generation of tomorrow to get their priorities right I come from Bangalore in every coffee shop there are three tables pitching at any given point of time and I can tell you there's no head or tail the guy is chasing how will I raise my next round of funding yeah and there's a few Elite who cracked this model and they've it's it's become a Nexus that's how the game works okay so someone's looking pit today proof of concept people come and ask me Rajiv can you help me create my pitch deck bye just pick one of these guys give them a three percent he'll take care of everything else for you okay yeah I know this I know there are guys who take two percent of your funding money and they make sure that you make that you get a funding the truth is not spoken okay it's been shown like this very uh you know this very empowering activity of nation building that we're building startups and therefore let's hire and what's happening with those hires okay how many of them even last how many of them if the ones who lost how many of them actually get value because then in fine print um so you Prophet okay for me value creation is more important than valuation very very important the fundamentals of business cannot be changed don't you find it amusing that there are companies that have gone to an IPO at an overpriced eroded wealth of the Common Man and have been allowed to do that by the system okay allowed to do that by the system okay and then they are saying that our business model is work in progress okay how our business model is work in progress when I hear such things from the so-called entrepreneurs who represent the startup community of India I'm like this is not startup Community this is the circus community of India that's what's happening there so we need to shift the focus from role models are we doing what should we do here how education education okay please let's talk about also the other side of the spectrum of guys who've left established jobs taken the plunge into startups okay and have ruined their careers please let's talk about those entrepreneurs who burnt money and didn't just burn money but also lost belief in themselves over a period of time let it not be the Nexus of 80 hundred people that is running and creating the business culture of this country okay let us let us talk both and let us see my biggest bone okay unpopular my PR team will kill me for this but I'm saying it I feel the media of this country is doing the biggest Injustice by not highlighting recognizing and celebrating the msmes of this country you are celebrating either mncs which are large corporates or you are celebrating startups which are technically not even Indian most of them are Singapore registered yeah Delaware everything about here right and what are you celebrating you are celebrating headlines like so and so is this much at this round of valuation so and so raise this much at this round of my valuation can you celebrate I'll tell you my groceries jobs my I think I have a simple rule whatever you see out there go in the opposite direction what do you mean by this you're seeing startup startup startup startup startup everywhere go in the opposite direction build an MSM go do the unglamorous stuff of building a manufacturing unit okay go to the unglamorous thing of building a brick and mortar business and take it to scale I'll I'm a fan of zerodha it's crazy okay there's ethos there okay there's a value system guiding that business there okay that should be the heroic story we should be telling

Channel: Rajiv Talreja

Views: 238,143

Keywords:

Id: zBh8_qOkin0

Length: 7min 47sec (467 seconds)

Published: Wed Jan 18 2023