There has been a great deal of wealth created overnight by the new companies, but the scenario has changed now, after the global pandemic and unexpected insomnia for the global economy, governments have found printing money the least destructive way to stop the people from going bankrupt,

In addition to the excessive printing of money, another significant fact is that startups are raising large sums of money, and you might wonder how decisive a raise can be?

There are 101 unicorns in India, but you cannot even find the number of profitable startups today that are reoccurring profits, even not in the proportion of 50:50.

Due to their zero profitability and high CAC, startups survive on the money they get from hedge funds and venture capitalists, which has led to their equity getting diluted more often. As a consequence, the higher authorities in startups have lost their control and have become the puppets of the VCs.

We have seen the recent outburst on the name of startups after the wave generated from the shark tank, but it misguided the new entrepreneurs as they now think of startups as only fundraising and enjoying the overflowing pocket by issuing a huge paycheck on their name, no new startup enthusiast thinks of the bootstrapping as the sustainable way to get recognition and as their expansion plans,

In India Kamath Brothers set an example for the bootstrapping as a considerable and sustainable way, if your idea makes sense and solves a major problem you’ll still have expansion by your bootstrapping

What’s the Catch?

Since the recent crash in IPOs for non-profitable startups, venture capitalists have taken a backseat, and now so-called non-profitable startups lack access to seed capital. Recent inflation brought temporary salary inflation, and now startups are laying off in the name of cost-cutting, since there was no shortage of funds during hiring, and now to sustain themselves, they need a ballooned valuation.

Although VCs apply this restriction only to pre-existing and well-funded companies, those seeking their first round of funding will still be able to enjoy the luxury,

Having the term startup infiltrate every household is exciting for new people who want to join the startup cult, as well as people with overflowing pockets who want to enter the startup game of angel investing. They don’t want to know about the startup’s core model, but only about the return on investment, which has no relevance to the startup’s core model and that doesn’t sound new this is what happened in the DOT COM BOOM