Something is rotten in the Indian Startup ecosystem. The ecosystem has been around over 20 years currently has almost 40,000 start ups. It claims to be second or third largest in the world.

It seems to be constipated. There just haven’t been any big exits to speak of. Everybody points to Walmart acquiring Flipkart. That is not a repeatable model. No body is focused on producing lean, mean, capital efficient and profitable companies. Entreprenurs are able to live good life without creating any real value.

It seems to be a bottomless pit for VC Funds. How long will LPs support Funds investing in India?

Indian government has its claws deep in the system and has made it hidebound. All sort of silly rules and silly infrastructure, like incubators and accelrators, are seen a support for the entrepreneurs. India needs to adopt a laissez faire approach. Let the entrepreneurs emerge in rough and tumble of the market. Let investors make unlimited amount of money or lose all their money. Let the exits happen any which way they may. Make the process very fast and tax efficient.

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