[A True Story ] Entrepreneurship is more than Fundraising
Disclaimer – The characters in this story are very much real (may be with different names & entities) & its resembles with the real world people (Founders or Angel Investors), companies (Media Houses, Investors or VCs) will not be coincidental.
Person-1 to Investors: Give me seed funding i want to start a business. Investors gave him money
Company established. Person-1 immediately starts getting huge media attention, starts giving lectures on Entrepreneurship, Business Values, Ethos, Vision, Growth, Chasing your passion etc…
Person-1 to Investors : Give me round-1 funding, i want to expand >>>> Money given
Person-1, wins “entrepreneurship award”, invited by B-Schools to deliver thoughts, newspaper titled him “change maker”, “icon”, “tycoon” blah blah….
Person-1 to Investors : See, people are downloading my app, give me more money; I want to diversify >>>> Money given
Person-1 is now a Business Leader, starts talking about country’s economic policies, REPO Rate, Trade deficit, US Visa rulings, Trump’s Victory, Chinese Economy etc on TV Channels & News Columns
Person-1 to Investors – Give me money, i want to do an acquisition, money given >>>> Acquisition done
Person-1 is now a part of industry lobby groups, government panels
Person-1 to Investors – Give me more money, I want to pay salaries & clear invoices
Investors to Person-1 “Show us Revenue”
Person-1: I am going for my salary cut, working on revamping business model, getting away with non-core businesses, firing employees, reducing agent commissions, moving to a co-working space & asking government support against foreign competitors.
Investors to Person-1: Move to the CHAIRMAN seat, let us appoint a professional COO
Person -1, Sells his entire stake to the investors & moves out. Become a full time Twitter centric “business thought leader”, philanthropist & an angel investor. Newspaper & TV Channels are now looking for new fundraisers for coverage.
Moral of the Story : Entrepreneurship is more than fundraising