Is raising funds a means to an end or an end goal itself?


A funding headline typically goes like “XYZ brand raised $ XYZ”.

With the glamour that has clouted the ecosystem, somewhere dialogues around – purpose, objective, and vision are missing.

In the five-plus years of interacting with stakeholders in the ecosystem, my favourite question to ask has been this:

Why are you doing this? What’s the purpose?

I don’t want to be a naysayer.

Somewhere I have felt since the very beginning that startups have somewhere become a niche like once upon a time engineering or becoming a doctor was.

While I also agree that raising funds is essential for businesses, there is a trade-off between the opportunity cost of growing at a faster pace vs. slow.

However, this line of thinking also makes it appear like a zero-sum game, where if you raise – you grow, if you don’t you’ll be a broken anda (in Viru Sahastrabudhhe’s words)

Through my own experiments and failures, I’ve recognised and aligned myself more with the traditional line of thinking. This may seem unconventional in today’s time where speed is everything, if you don’t create that runaway – poof! you’re gone!

While this might appear to be true, I firmly believe that in long-term businesses can survive and prosper based on their merit and value creation.

Some old-age examples are businesses(read once upon a time startup) like Haldiram’s, Marico, Havells, Page Industries which emerged from humble environments and with their zeal and vision – found growth and long-term standing in the market. (I will add resources in the comments which will help you learn more about these businesses)

What are your thoughts?

#opportunity#startups#growth#engineering#help#like#funding#brand#startup

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