Apart from ‘growth hacker’ term, one of the most abused term in startup ecosystem is ‘Serial Entrepreneur‘.

The Slumdog Millionaire
The Slumdog Millionaire

In some cases, these serial entrepreneurs move from one idea to another to another, without even launching or making a serious effort towards a single idea.

But I am not talking about these founders.

I am not even talking about wannapreneurs who read a lot of founder stories and get wet dreams of billion dollars in their bank account.

In India, there is clearly a new breed of entrepreneur which I’d call as :

THE SERIES ENTREPRENEURS

The Series Entrepreneurs are (almost) in the business of raising money after money.

They raise an angel round and the while the term sheet is being signed, the race to raise Series A begins.

They raise Series A and are are approaching investors for Series B.

They jump from one series to another one, very quickly.

Are Series Entrepreneur Right In Running In A Loop?

To a certain extent, yes.

Smart founders (and investors) know that this funding party won’t last forever.

They know these:

[1] In most consumer businesses, the one who raises the max amount of funding tends to be the winner (defined as a combo of traction / team / revenue).

Funding gives you a lot of spending power. A lot.

The truth is that at the end of the this party, there will be only 2-3 winners per category. Investors are betting on the ones they believe will be among the top ones. In some cases, there are attempts to make 9 women deliver a kid in 1 month – i.e .force a startup to raise the next round and grow FAST.

The Indian startup ecosystem has seen failure of consumer startups who failed to raise a LOT of money and on the other hand, there are very few frugal success stories (in B2C space) to look up to.

[B] The party won’t last forever (everybody says so). But what if it does?

Smart founders are taking an aggressive stance on both the outcomes. If we hit the slump end, let’s stock enough cash to survive.

If the party continues, let’s keep throwing enough money on customer acquisition.

The (expected investment downturn) deadline is ~6 months from now, as being predicted by several investors.

So why wait? Raise as much as you can.

Say Hello To ‘Series Entrepreneurs’. 

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