Taking stock-Through the journalist’s lens.

It’s been overwhelming, exhausting and consuming in equal proportions to cover the tech startup ecosystem in India over the past two years. I’ll take the liberty of assuming, a majority of you reading this blog post would be familiar with the frenetic and never-seen-before pace of activity that took place among startups, investors and everyone else involved in this current boom cycle.

As a journalist I may not have gone through the pressures of running a business or of taking investment decisions in a period which was fraught with wild exuberance. But, as someone covering this space and having an inside track, I felt the heat of keeping up with the pace at which things were evolving. This period also got the focus of many publications- offline and online- onto this sector bringing about competition among journalists on who gets what first. I’d first written about the media euphoria and boosterish coverage in January 2015, but the headiness only got amplified post that.

This year though has started on an extremely sombre note and one that made me write this post. I know it’s a little late in coming but it’s here!

Things have perceptibly and very evidently changed over the past five-six months. The media has been writing about that , too, in equal doses as when the times were exceptionally good. 

But beyond the skittishness there’s a big shift that’s happening. IMO, the most important change from the peak of the go go times to the situation that we are in today has been the way entrepreneurs talk to me now. Some of them are in the midst of their toughest test, trying to wade through a period which they never saw coming. Many of them may not be able to survive this phase but they would have learnt a huge lesson and will hopefully comeback with an ever better business which will be far more efficient and sail through the storm. I can already see acceptance among the smart founders. Some of them are admitting that they got carried away. 

They are taking the right strides in the right direction, after having gone astray, they say. I don’t want to point to who was responsible for these egregious mistakes. Bill Gurley’s post from a few days back encapsulates very elaborately on that topic.

I can only tell you from knowing about the goings-on in the ecosystem that some of the founders are in this not-so-envious place where they are shuttering operations, laying off employees and have literally hit the brick wall, because they had no one to guide them on what was the right way to steer a business. They were only guided to grow and grow faster. This applies to not all founders, though. I hope as I write this post, they are surrounded by people who can tell them that even if their chips are down, no one is judging their calibre to bounce back successfully.

In the meantime, as a journalist I want to tell  founders, investors & all and sundry, that I don’t derive pleasure in writing about the bad times. But just the way we covered the euphoria, we are in the business of disseminating news which is not as good, too.

Being transparent serves us all good especially now. Just the other day I was with a founder who told me unabashedly how difficult it was to raise money and that it took him over eight months to do so. Like Gurley said in his post, don’t bother too much about the wrong things– image/ego/perceptions. Ultimately, all of this is not what gets you success, it will be what you make of your company.

Good luck, everyone. And let’s all be honest.


Media’s new found euphoria around startups, justified?

I’ve been discussing this with fellow journalists, entrepreneurs and some of my VC friends over the past year– how the mainstream media has discovered startups and lapped up every little thing that they do as front page news. They have good reason to do that- after all gobs of investor money has gone into consumer internet companies, how do you ignore the gold rush? I really can’t be griping about this considering I’ve written so many of those stories myself, but now is the time to start asking some tough questions to these same startups.

Over the past few months, I’ve noticed the bigger and well-funded startups have been feeding journalists only things that they want to and gotten away with more favourable pieces than critical ones.

I started reporting on this space (consumer tech) sometime in 2010-11, I remember fund raise stories involving Myntra, Flipkart and others would go at best as a single column. I’d explain to people that these folks will become billion-dollar companies sooner than what we think they will. And it did not take long for that to happen. However, the fun was in pushing for those stories then and not now.

I’d think what’s happening now is that entrepreneurs— big and small–have realised that startups are getting phenomenal space in media and they are smart  to take advantage of this boosterish phase.

It’s still great to celebrate that budding startup,  break that big scoop on a billion dollar fund raise, but I hope this year we also see a few breakthrough and hard hitting pieces on this new breed of companies. I realise a lot of reporters want to do these kind of stories but then the pressure of a newsroom is not easy to deal with, what if you miss that big fund raise news? There’s increasing competition with so many publications starting to cover this sector but then somewhere we as journalists need to put things into perspective.  I face this dilemma everyday..

People in the ecosystem tell me the honeymoon period will end once the funding bubble bursts but I say why wait for that to happen?

Let me know what you think…happy new year everyone!