Rising valuations. Falling exits. Rich founders. Poor VCs. Like opposing atomic nuclei that should not normally combine, but when they do, we have startup thermonuclear fusion
Many celebrity founders who are now LPs in VC funds haven’t actually taken their company to an exit
A secondary exit is simply a share purchase transaction where, instead of issuing new shares to an incoming investor, the existing shares held by the founders (or other investors) are sold to the new investor instead
The challenge/aspiration is to no longer build a meaningful business—rather it is to “hack” the funding process
It isn’t a coincidence that a major chunk of Tiger Global’s portfolio in India is in startups who have raised angel funding from Flipkart’s founders
“Startup entrepreneurs turning investors in VC firms in India,” ran a recent story in Mint. It was a story that largely went unnoticed—as there were hardly any discussions or debates on this story in any startup circles nor was there any buzz around it on social media.
But as someone who has now spent more than 15 years in the startup ecosystem in India, I had only one thought as I read line after stupefying line in this story: How in the world did we get here??
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