As reported in FTI, Fund Trust of India, there have been desperate efforts made by venture capitalists to fund start-ups. Already, 11111 start ups have been funded by VCs this year so far which is a 1000% jump from last year.
VCs have been seen making elevator pitches to various founders to take funds. Mr. Raatjaani from KhataJa Ltd. said, “I have not hired a single employee for my company and have already received money from 4 VCs transferred to my savings account. Couple of them have started recurring deposits towards funding. I have avoided going for morning jogs and have increased security at our society gates.”
Clearly, This has caused an unrest in entrepreneur community. Many of them raising funds to avoid VCs and have also reached out for police protection. Entrepreneurs are using id badges of big corporates to avoid paparazzi of VC groups. Words such as “funding”, “new idea”, “start up”, “Mobile App” etc being used with extreme caution.
A spokesperson from renowned VC funds Aisaqukiya stated, “Look, we have a lot of money lying in our go-downs and we need to clear it up as soon as possible. Top management is insistent on ensuring that we are funding at least 5-10 big loss making start ups. It has become a reliability metric for our funds and also the quick catching trend. Our analysts are working hard to spot bigger loss making players in market and fund them heavily. Money holding cost is very high with rat infestation at its all time high. (said with a grin)”.
Some activists are also suggesting that lot of such funding is also done in anticipation that start ups would not look for funding once the black money is back in India.