The Bubble Economy of Startups

The Bubble Economy of Startups

Submitted by Editor on Tue, 2016-03-22 15:33 India is witnessing an unprecedented amount of startup activity. Funding stories abound and startup founders are being hailed as the new-age super heroes. But is all hunky dory? Or is there enough muck being swept under the carpet amidst all this euphoria? TinyOwl and Zomato are just the tip of the iceberg in terms of underlying issues that are creeping to the surface. Just the other day it was proclaimed in bold print that Zomato was going to look at revenue generation!! Really??? Is that not the point of every startup? If you are not revenue generating, then there inherently is a problem in the business model. Welcome to Startup Freakonomics 101! In this piece, we will look at different sectors in the weeks to come and will delve deep into the economics of what works and what does not. We will take a common sense look at the Indian startups, overhyped valuations and prick the bubble. The bubble economy will not last and it is better we understand the ramifications early enough and start to take corrective measures. The impact of this bubble burst will be far-reaching. The deluge that will ensue will sweep away many good companies but as is true with any cataclysmic event, most of the bad startups and copycats will be eviscerated and the ecosystem will emerge stronger. Companies with truly ground-breaking innovation and solid fundamentals will emerge. Until next time…….@TheStrtupJunkie   About the author:High experienced ‘start upper’ undeterred by multiple startup failures. Has close insights into the startup ecosystem in India, Bangalore in particular. Currently working on a startup of his own and trying to make a living and a profit out of the startup.