The India Startup ecosystem has been going through turbulent times through the past few months. With investors being cautious in funding and talent being skeptical in choosing startups and constant pressure from the investors, are we headed to a bubble burst? Will our startups rise from this downhill journey? Or does it make sense for India to become a closed economy where innovation doesn’t really matter. Too many questions have been surfacing our startup industry and its time we take this challenge head on.
Startups will always be high risk ventures with a high probability to fail. However, it doesn’t mean that the entire ecosystem is to be looked at with skepticism. Startups like other businesses will always face competition in an open economy and this competition will always have a big impact on its valuation. So how do you make sure you stay ahead of the competition?
Innovation. No two ways to go about this. Make this your primary responsibility. When you innovate, you solve a problem that the society needs. You build an outstanding product, a strong brand and you build a customer network. Innovation is what makes your startup competitive. Can we think of a life without Google? Who will solve all our answers? Google innovated on the rise of the internet era and made our lives unimaginable without them to the extent that google is now a word in the dictionary.
Long term vision. Long term vision is what separates entrepreneurs from great entrepreneurs. Where will your company be 5-10 years down the line? Steve Jobs always knew what he had in mind for Apple and even after receiving a lot of negative response on the Macintosh, he never gave up. Jeff Bezos always knew he wanted Amazon to be a one stop shop for all your needs even though he started of with selling of books. To put in simply, long term vision is a path that guides a startup to the end result.
Fundamental value. A common reason for the sudden rise in a stock is the emotional reaction investors have towards that stock. The same holds true for our startup ecosystem. Two years back, if you were an ecommerce internet startup, funding was not an issue. Investors blindly pumped money in the ecosystem not focusing on the value the startup generates. Flipkart and Zomato’s recent devaluation was a peak of the investors realizing their mistakes. Companies like Facebook, Amazon and Apple were not built in a day.
So has the bubble burst? If we evaluate the situation, we see that our Indian ecosystem is merely at a correction phase where startups that innovate, have a long term vision and work on their core fundamental values will rise up to bring a positive change in the industry. This change is not far and India will rise to give competition to the global giants shortly.