This week brought news that one of our competitors (Buildzar, with a Z) shut down, closed operations, failed, etc.
On the one hand there is my startup (Buildkar, with a K), non series-A, non pre-A, with low burn and growing handsomely. On the other hand someone with not just great funding but marquee names behind it (Vineet Singh of 99acres.com, Puneet Dalmia of Dalmia cement and jobsahead.com) — and honestly, the kind of competition that I thought was executing right and gave me nightmares many nights.
So, what happened?
Here are some guesses:
- Zero-day funding rarely works
Even lesser in B2B. There are too many startups that get funded at the idea stage. The time that should be spent experimenting is instead spent figuring out how to grow a team and scale. - Mo’ money, Mo’ distractions
It is tough to be hungry when you have a bulging bank balance. Some have done it, but that is a miniscule percentage. Lack of resources gets you to focus on the core unlike anything else. - Grow now or die now
This is an unfair expectation of a team still trying to find a market, product and cultural fit. It’s like sitting in a taxi, starting the meter and then starting a discussing of which restaurant to eat dinner with your co-passengers at. You may have done it one drunk night on the town. But it cannot possibly be modus operandi all the time. You have got to figure your shit without having the sword of high burn hanging over your head. - Lack of flexibility
I don’t believe in only data driven entrepreneurs. Early on in the life of a startup, the founders better have both the freedom and mindset to look before you leap. With a large investor, this flexibility instantly wanes.
Everything is now questioned.
People will question the market size.
They will question growth numbers.
They will question marketing strategies.
They will question your ability to execute.
They will question your right to exist when a better funded competitor failed.
How can you respond?
Don’t.
Seriously. Don’t respond.
Smile, and walk away from this question. For now.
Go back to your startup.
Execute even harder.
Hustle even more.
Double down on what is working.
Get back to the basics.
Run your dhanda.
Wait till you are in a better position to explain yourself and your company. Responding at this time means giving in to short-term thinking. And means playing the game by their rules.
Maybe write a short article to let off some steam.
Then go back to work. Just like what I’m doing now.
