Ideas in India matter more than startup valuations
Ideas in India matter more than startup valuations according to Nadella.
Economic Times reports that making a passionate case for innovation, Microsoft CEO Satya Nadella argued that quality of ideas matter more than startup valuations in the long run. "I don't look at valuations," he told a group of editors in Mumbai. "What matters is the quality of ideas."
Responding to a question on high valuations of startups, Nadella leaned on researcher and consultant Carlota Perez's work in exploring the relationship between technology across several economic cycles. 'Overfunding' during times of change will make it possible for a whole lot of ideas to flourish, he said.
Nadella took the high ground in the fierce debate now underway on high valuations of startups. Without getting drawn into specifics, he limited his comments to the larger role financial capital can play in birthing innovation. "There is a lot of startup and entrepreneurial energy in India," Nadella said. Several ecommerce companies in India are no longer startups, but have evolved into global companies with high capital and valuations.
"Our economic model is putting digital technology in the hands of others," he said. Local startups with great ideas should have access to global technology, Nadella said. Large IT services companies in India are also keen on using technology to add value, he added.