BY ROBIN GHOSH
( FORMER CHIEF ECONOMIST, BENGAL CHAMBER OF COMMERCE AND INDUSTRY)
KOLKATA, 25 APRIL 2023:
Back to Startups.
Note what Ben Mathias, Managing Partner, Vertex Ventures, a venture capitalist firm, observed “In a recent Board Meeting, pushing the founder for more growth, the exhausted founder finally said, ‘Guys, I am playing a test match and not a T20 game”
Mr. Mathias eloquently describes the meaning of this expression. He says a startup’s journey takes at least 10 years. There will be near death moments and there will be exhilarating moments.
Building a long term sustainable business requires focus, consistency and commitment. Hitting a six in the third over is pointless if you are going to get out in the fourth over.
Startups must understand that VCs look for some attributes in the founding team. What is that?
Essentially, the founder must have the passion and ability to navigate the business through the swings of ups and down and erect a sustainable long term business.
Alongside, VCs also evaluate some raw metrics like market size, business model, competitive environment and product differentiation.
Since business operates under a constantly changing environment, the operating parameters change and hence the business model sketched initially undergoes radical change and a new model emerges.
What VCs explore in a founding team is leadership quality and agility to steer through the rough patches and to create a dynamic business model with differential value and power to win at the marketplace.
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