TGIF! This week has been a lot, coronavirus has been having a major impact in tech companies globally and a bunch of companies are letting employees work from home. The next couple of months will be a huge experiment to see the viability of remote work on a much larger scale (there are definitely quite a few remote-friendly companies but not as many remote-first companies). Also heard some 🔥news today: Apparently WeWork was in talks to invest a couple hundred million into OYO a couple of weeks before their intended IPO, but that obviously did not end well.
Seems like a lot of ex-VCs (usually VPs, Principals & other non-partner positions) are leaving the industry to start their own cos.
Their reasoning? Having a higher upside as entrepreneurs, which I definitely agree upon. We have the likes of Shashank PS (Ex-BVP & Accel) founding CasaOne, Videt Jaiswal & Pulkit Pujara (Ex-SAIF) founding AirBlack, and even Leap Finance’s founder Arnav Kumar who left SAIF.
I asked a well known senior profession why they these individuals are leaving the world of venture and he told me: “How many VCs out there have $100M+ net worth?” and the answer is probably pretty low.
I do think the article misses a key point though: is there a path to being a partner at these funds, and I think the lack of that track is what leads to these individuals leaving venture, since they might feel like they might have a limited growth trajectory.
I do think the piece glorifies being a founder a little too much, being a founder is fucking hard. You have to grind it out for several years and for a lot of founders I bet it feels like things could complete collapse at any point of time.
Going to end my take with this: there are a bunch of billionaire founders, but how many broke VCs do you know?
The Reserve Bank of India put Yes Bank under moratorium (temporary suspension) due to the bank’s inability to raise capital to address loan losses. This move also resulted in Yes Bank’s infrastructure being unavailable.
This has impacted PhonePe pretty heavily which uses Yes Bank as their banking partner. Other cos such as Cred, Udaan & Swiggy have been affected.
I have not confirmed this but I would assume some other companies who use Yes Bank as banking partner might have their services down as well.
Sameer Nigam, CEO of PhonePe, put out a tweet regarding the issue and mentioned that the entire co is working on getting the platform live within a couple of hours.
The good news is that it seems like the fintech industry is coming together to try to help out companies with no or dearegded service (s/o @IndiaDice, @harshilmathur & @nikhilkumarks)
Might have more on this tomorrow (will do an extra mini-piece if there’s an update).