VC to Founder: Change in Mindset

Some VCs, after giving advice and funding to startups, decide themselves to become founders of their own startups and find its not all that easy. Actually executing and delivering the job is totally different from being a VC looking at strategy.

As a VC investor, you connect entrepreneurs with potential hires but as your own entrepreneur you need to make sure you get the right talent. VC-turned-entrepreneurs tend to be more cautious with cash. Being a VC doesn't guarantee a success when you switch to being an entrepreneur. Success as an entrepreneur is a combination of market, timing and funding. While an entrepreneur has to deal with customers on a daily basis, VCs get their reports from investees at set intervals.

But the advantages of having been on the other side of the table as investor are there — long-term vision, fiscal prudence, experience of having guided other startups through their mistakes, and obviously, access to the funding network through your contacts. VC experience helps you think through a problem and lay out the next five steps.  

The mindset you need to be an entrepreneur or a VC is obviously different. As India's startup ecosystem grows, more VCs will become entrepreneurs and vice-versa.   VC ⇌ Founder will help the ecosystem mature.


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