[Daniel_Newby]

> For a lower middle class person such a failure means, the end of life. Full Stop! Because the debts will drown you till you reach your grave.

Debts? Does India not have limited-liability corporations? In rational countries, when your business idea fails, you just throw away the company and start another.

[kamaal]

VC's have been around in India since early 90's, may be late 80's.

But businesses are still stuck in the concept of loans. Its like you take a loan to buy your home(Or if I'm right its called mortgage in the US). Businesses pretty much run on loans. So things get super risky, when you factor in failure. Because lenders are expecting principle amount + interests in returns, and you have to often give some thing as a guarantee(for eg: a house, or a plot) which remains with the lender till you return the amount.

I think the trends are changing now. I heard a senior VC talk at a start up conference here in Bangalore. One of the main reasons why entrepreneurship never took off in India was because people had to deal with what-after-failure scenarios, and then it ends there. If the venture is too risky there is hardly any point trying.

[sliverstorm]

You are correct, "mortgage" is the colloquial term used in the USA to refer to home loans.

[udit99]

The lower middle class person's venture alluded to in the parent comment is most definitely not going to be anything remotely resembling an LLC. These ventures are more like "Autorickshaw Driving" or "neighborhood grocery shack" than "Instagram for dogs". The business is probably not registered anywhere and the loan is obtained at usurious rates from the neighborhood money lender who has the leverage of muscle-power or contacts to make you pay up. Of course this varies depending on where in the urban/rural lower-middleclass spectrum the entrepreneur falls under, but you get the point.

[kamaal]

Though what you are saying is true. I've found the same even with regards to tech start ups.

The situation is no way close to that in the US. In fact even to get anything close to an angel investment you need at least an IIT or an IIM degree. Ask this to anyone trying to bootstrap. Alumni connections are very important, if not that you at least need to be some how networked to a VC. I've had personal experiences with all these.

The best bet for any Indian entrepreneur is either raising money from family(If they are rich enough to fund you) or really bootstrap it as a side project and grow it out.

Either way being an entrepreneur is not for the faint hearted in India. If you are bootstrapping in your side, you will likely work 19 hrs a day and face failure after failure with nearly everyone around finding reasons to make you and your decisions look stupid. At the same time you see guys not even 1/100th the worth climbing the corporate ladder and taking obscene salaries back home just because they happen to be good politicians.

It just all boils down to one word, Persistence. Keep trying. Its not about winning or losing, you just have to show up every day and put up a fight. Eventually you will make it.

[thomasd]

> If you are bootstrapping in your side, you will likely work 19 hrs a day and face failure after failure with nearly everyone around finding reasons to make you and your decisions look stupid.

Great point. This is actually not constrained to India but propagate through most of Asia, including the generally rich Singapore. Seems like a favorite "past-time" to watch people fail. It's a society that lives by the saying "the nail that sticks out gets hammered down".

Which is why Silicon Valley is such an attractive place to pursue a startup. The support system is there and there are little social stigma attached to failure.

Failing after putting in all the long hours and weekends is not something that is easy to stomach alone. Failing and having everyone around you rub it in is brutal.

[sliverstorm]

You're thinking about it from a very structured, Western viewpoint. Not every business is funded by a loan from the bank. Some businesses are funded by the owner's hard work, savings, and maybe a side job. If that business fails, the owner may wind up out of a lot of their savings and in debt simply due to basic life necessities.

[wpaladin]

India has practically no social security as well. Your definition of "Rational" does not come into play.