Funding: The Game

You can consider this post as a continuation to my previous blog. Click Here, if you haven’t read that already.

Is “Funding” as cool as it sounds? OR

Does the medias of the world make it sound cooler?

The shows like Shark Tank have done a good job of educating people about the startups of the country. But, it has also left an impression of startups being all about funding, which is absolutely not the case.

In the race to catch eyeballs of the people, media is celebrating the wrong thing i.e funding. Funding is just a small pie in the cake which startups usually use for employing people, investing in new technology or in the expansion process of the company.

Celebrating Funding of a company is as good as Congratulating a chef for buying vegetables to make his dish. Cool, isn’t it?

Big VC firms fund companies that haven’t made a single penny profit in the entireity of existence. But, it lies in their strategic books that if 1 or 2 of the 100 companies they fund becomes profitable by a huge margin, that in itself would make up for the money that they put into the number of companies combined.

People should rather celebrate the SME’s(Small and Medium Enterprises) of the world.

Sure, these big highly funded startups are employing people. But, how secure is the employed person’s Job? That is a topic for another blog.