Tech startups face a drought as e-commerce fattens

Flipkart and Snapdeal may be soaking up the cash as buoyant investors place a high value on the potential of Indian internet commerce companies but for most of the country’s technology startups, big bucks and skyrocketing valuations are only a distant dream.

Young ventures in India are typically valued less than peers inSilicon Valley, China or Israel due to a paucity of capital and investors unwilling to grant high valuations in a market where only a very few companies have delivered strong returns so far.

“In Silicon Valley, there is a lot of capital available because in the early stage, the managers of the capital are entrepreneurs and not investment bankers,” said Sharad Sharma, angel investor and co-founder of iSpirt, a software product industry think tank. The lack of a robust merger and acquisition market that can deliver strong exits is also pegging back the value of technology startups in the country.

Read More


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: