The Indian VC Market

Does it even exist or is a figment of imagination, just like the villain in the harry potter series, one who should not be named.

A few years back, say in the dot com boom, people realised that there were too many Indians in the Silicon Valley. And India was a developing economy. Looking from an investor's perspective, he chases sectors/economies which can grow at a faster rate and provide better ROI. So some investor put the Indians and India together.

Hence somebody sitting somewhere manufactured the Indian VC industry. He took the Indians out of Silicon valley, put them in the native country and expected the model to self manufacture itself.

Some smart entrepreneurs like Indiabulls were on the other side of this system, the consumers. They were one of the million start ups on the internet and india plank who got a start. But unlike other, they very soon dumped the the internet plank and took a U turn and entered conventional businesses.

IndiaBulls ambitions are that of a conglomerate. More on their initial years here, http://findarticles.com/p/articles/mi_m0HWW/is_34_3/ai_66678800/?tag=content;col1

So ten years hence, one finds a Industry, Money, Investor managers, Desi's returned from US to give something back to their country, start ups etc. But no transaction. Because, there is no market.

VC's have changed direction, they have become more of micro PE funds investing in micro finance, healthcare, hospitality etc.

So, what went wrong. Silicon valley has a system. India does not. The presence of a majority of Indians is merely incidental and speaks on the nomadic nature of Indian psyche.

A market never gives an individual a model. The model has to come from within an individual or a team. The market helps the individual tweak and iterate the model. I wouldn't agree with jumping wildly in a market and expect random experiences to transmogrify into a model.

And if an individual took some model from the market, for how much time can he possibly sustain the high of the novel model? More on this here, http://www.paulgraham.com/organic.html

Someday, when I start dabbling in Journalism, I would start giving structure and themes to what I write.