TLDR:
- Amit Gupta from Factoryal discusses the vulnerabilities exposed in the start-up ecosystem during the recent funding winter.
- Gupta emphasizes the importance of resilience and innovation for start-ups to navigate the crisis and emerge stronger.
Amit Gupta, the director of practice growth at Factoryal, shared insights about the challenges faced by start-ups in the Indian ecosystem, particularly during the recent funding winter. Gupta highlighted the need for start-ups to redefine their business models, focus on core competencies, and adapt to feedback to thrive in the current environment. As a consultant, Gupta’s role goes beyond capital investment; he works closely with start-ups to develop sustainable practices and foster innovation, differentiating his approach from that of venture capitalists.
Gupta pointed out that the funding winter revealed weaknesses in business models that were previously overlooked due to easy access to capital. He stressed the importance of resilience among founders, citing it as a crucial trait for navigating challenges and aligning with investors. Gupta also discussed the disparity in opportunities between first-time entrepreneurs and those with multiple ventures, noting that experienced founders often have advantages in terms of credibility and resources.
Regarding the duration of the crisis in the start-up ecosystem, Gupta acknowledged the uncertainty posed by global economic conditions but expressed optimism about a potential recovery in the next 12 to 18 months. He emphasized the significance of resilience and innovation in driving this recovery and suggested that the current situation might lead to a shift away from fear-of-missing-out (FOMO) investing.
