A prominent venture capitalist at Titan Capital has raised concerns about the growing trend among Indian startup founders who consider raising capital a pre-requisite for starting their ventures. According to the VC, many founders approach investors with pitch decks, looking to secure funding before they have a Minimum Viable Product (MVP) or any user engagement.
In a recent statement, the VC criticized this approach, emphasizing that founders don’t need an app or fancy CRM systems to validate their ideas. Instead, they only need WhatsApp to create a community of users and a Google Sheet to track their progress. “You don’t need an app to build a community and sell to users, you need WhatsApp,” the VC remarked.
Start Small, Validate First
The VC further explained that founders should start by building a WhatsApp community of ideal users, engage with them directly, and keep track of every interaction and sale using a Google Sheet. By doing so, they can quickly assess what works and what doesn’t before rushing to raise capital. The focus should be on validation, not on collecting funds prematurely.
The VC stated, “Yes, the processes may be crude and messy, but that’s in line with the stage you’re at. The goal is to get quick feedback and insights, not to build a polished product right away.”
Capital Shouldn’t Be the First Step
The VC also emphasized that raising capital shouldn’t be viewed as a first step. Founders often fall into the trap of assuming they need funds to begin, which leads to lack of focus and a wasted effort. Instead, the VC advised founders to focus on the fundamentals, solve real problems with minimal resources, and build with what’s available.
Many successful entrepreneurs, according to the VC, didn’t scale by building more features or spending more money. They succeeded by focusing on one core problem and solving it with less—a discipline that can eventually give them a long-term advantage.
Capital as a Tool, Not a Crutch
In conclusion, the VC warned that capital should be raised only when truly necessary and that founders should not rely on it to get started. “The discipline of working with limited resources becomes your unfair advantage,” said the VC. Founders who can delay raising capital, while continuously adding proof points along the way, are the ones who often turn out to be the most successful.
This advice underscores the importance of focus, discipline, and validation in building a startup and offers a valuable perspective for those looking to launch a business without getting distracted by the allure of early funding.
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