The tension in the air surrounding the venture ecosystem is palpable at the beginning of 2016. The world has not gone to plan. Ironically this is not a new thing - it seems to happen with relative frequency. Yet whenever it happens it causes large amounts of consternation. Entrepreneurs and investors get anxious. They have made promises to each other as well as employees and other investors, which they have to defend. When external factors impact life, the easiest explanation is to find a villain. This is simple and convenient, but is both untrue and a wasted opportunity to learn and improve. Entrepreneurs and investors are jointly trying to imagine and create a new world. There is no straight line to this process... it is a series of assumptions and iterations - a process of Experiment, Fail, Learn, Repeat. However like all good stories, the characters of greed and fear (of missing out) enter the plot and irrational exuberance sets in. This creates market hype and bubbles. Eventually the dust settles and the excess ends. When the music stops only those businesses that focused on delivering a true customer value proposition survive. So what happens to the others that were born out of greed and fear? Like any Darwinian system, they adapt or perish. But warriors (and make no mistake, all entrepreneurs are warriors) will not go quietly into the night. India's venture ecosystem has lived through a period of extreme hype and is now entering a phase of rationalisation. This is normal and healthy. Unfortunately, so is the blame game that comes with this phase. Read more here

First Published in Economic Times
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