V.S. Venkatesh’s Post

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MD & Co-Founder--- Med-tech | Ophthalmology Med-Devices I Health-tech | Start-up Advisor | Fund Raise | More2Bore

Absolutely brilliant analysis Ankit Anand , I explain this to most Business Analyst & whose experience does not go beyond Desk Research of Historical information & only Field experience can capture the changing dynamics in the Indian #Medtech or #meddevices sector. The #Deeptech #Business while solving very specific problems can turn in superlative performance because of the possible moat of not many takers to back & players. Most #investors in #Healthcare prefer to take the road more travelled often than the #Road less travelled.

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Founding Partner at Riceberg Ventures

🚀 The Myths Around Deep Tech Startup Investing: High Risk, Long Time, and Big Money When it comes to Deep/Frontier Tech startups, three concerns often arise: 🔴 This is high risk. 🔴 This will require a lot of capital. 🔴 This will take a long time. While not entirely incorrect, the myth lies in assuming other types of startups—like D2C—automatically mean lower risk, faster growth, and less capital. Let’s unpack this. What Defines a Truly Successful Startup? - For early-stage investors, success means: 📈 Tangible: Reaching $100M ARR and becoming PAT-positive. ⚙️ Intangible: Achieving product-market fit and scalability. 💡 In VC terms, the ultimate goal isn’t just a high valuation but delivering real DPI (cash-on-cash return), which can be achieved easily if you hit the above. Otherwise, you are always walking on a rope; think of Byju. The Reality of Building Billion-Dollar Businesses 🔍 Unicorns take time, capital and carry risk. 📊 Data shows most unicorns took 7+ years to mature and raised hundreds of millions of dollars. For example: 🍽️ Zomato (a celebrated Indian D2C success) was founded in 2008, went public 13 years later, and only turned profitable 16 years after launch. 🥛 Zepto raised $1.8B to deliver milk in minutes—double the ~$1B Rocket Lab raised to build rockets 🚀 . 📖 The reality: Building scalable businesses takes time, money, and effort, regardless of the sector. Core Differences in Success Drivers While both D2C and Deep Tech startups require resources, their success depends on answering different questions: D2C: Is there scalable demand for this product? Can profitability be achieved at scale? Deep Tech: Can groundbreaking technology solve a specific problem before competitors while defending its moat? Tracking Progress: D2C vs. Deep Tech - 🔑 D2C startups are easier to track with financial metrics like: 📊 MoM growth 💰Top-line revenue 📉 Narrowing losses 🧠 In Deep Tech, early financial metrics often mean little. Progress must be tracked through domain-specific milestones. For example, a medtech startup might measure progress toward FDA approval through preclinical trials and regulatory submissions. 👉 This makes domain expertise critical—deep understanding trumps surface-level financial analysis. Understanding Growth Paths - 📦 D2C: Often grows year-over-year, like Amazon. 🧪 Deep Tech: May stay flat for years before experiencing a hockey-stick jump—think OpenAI or SpaceX. The Takeaway - 🎯 Whether it’s D2C or Deep Tech, building a billion-dollar business requires time, capital, and effort. The myths of lower risk, less capital, or faster returns don’t hold up. ✔️ As investors, it’s essential to look beyond surface-level assumptions, grasp the nuances, and make informed decisions. 🚀 Great businesses take time, but with the right strategy, the rewards are extraordinary.

Ankit Anand

Founding Partner at Riceberg Ventures

2w

I love the reference to the 'Road not taken.' It brought a nostalgic smile on my face, V.S. Venkatesh.

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