The Two Paths Every Entrepreneur Must Choose

Imagine two friends, Priya and Rohit, both graduating from IIT Delhi with brilliant ideas. Priya wants to build an AI-powered logistics platform that could revolutionize supply chains across India. Rohit dreams of opening a chain of authentic South Indian restaurants in Mumbai.

Both have “startup ideas,” but only one should be seeking venture capital. Can you guess which one?

Understanding the Venture Capital Game

According to industry data, venture capital works on a simple principle: investors need massive returns to compensate for high risk. When a VC invests ₹10–20 lakhs in your startup, they’re betting on making 30x returns or more during an exit event.

The Math Behind VC Expectations:

• Investment: ₹20 lakhs

• Expected return: ₹60 crores (30x)

• Exit timeline: 7–10 years

• Success rate: Only 1–2% of startups achieve this

This is why VCs are only interested in businesses that…