@ NASSCOM Product Conclave – Most of the startups have technical leadership, but not business leadership

Summary of talks from VC panel@Nasscom Product Conclave (Sudhir Sethi of IDG Ventures, Alok Mittal of Canaan Partners, Ashish Gupta of Helion Ventures, Srini Vudayagiri of LightSpeed ventures]

  • IDG’s Sudhir Sethi shared some interesting stats:
    • Out of 600 plans that they went through,
      • 43% constitutes products, 15% software products, 13% Internet, 13% Mobile, 2% Hardware startups
      • Majority of deal flow in software products is from Bangalore, Internet products from Mumbai
      • 51% seed stage startups and 41% early stage
      • Have stopped looking at > 3-4 year old companies,
      • Most of the companies in embedded space are not fundable,
      • Internet and Mobile segment looks much better, Enterprise is promising.
  • Overall, VCs seemed to agree on:
    • Most of the startups have technical leadership, but not business leadership.
    • Need market-inward products and not tech-outward product.
    • Missing disruption, lots of me-toos in the market.
    • Missing strong advisory board.
    • Missing Product Management skills – startups need to find a bridge between engineering and sales/marketing

My thoughts resonate with what VCs say with regards to lack of Product Management skills in startups. But at the same time, Indian startups need more mentoring (than VC money) and I don’t see VCs even acknowledging that.

What’s your opinion?

Recommended read: Why startups need product managers

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