Post on Medial

Extra management overhead. They want the large cash out rather than regular cash flow.

Bruh Indian sharks are giving loans it's fine. And some startup entrepreneurs are even happy but. What they do is if you ask 1cr for 10 percent. They make it 10 lakhs for equity and 90 for debt for 10 percent . What the fuck was that. That's the reason eventually startup entrepreneurs asking no debt that they get a fair equity dilution and can have some movement in numbers.

These startups r at early stage right now. So founders have full equity and they don't have money left so risk factor is involved in this if whether my business doesn't do well how will I repay the loan and more over our mindset is also of that kind due to our upbringing where as in US they know we will get funding easily from different places so we should not dilute that much of equity where as in India raising money is still difficult than US As many of Indian big company they r funded by US ventures so.... It need more time

The main reason of this is upbringing....... In India generally the parent always teachs his child that loan is bad of us (so called karj)That's why loan has a negative impact on the mind of children right from childhood.

Shark Tank India is just at S3. It will take some time for Indian sharks and entrepreneurs to evolve and become as matured to US counterparts.

Even royalty is frowned upon in India too much. In most cases it is a fair deal but entrepreneurs avoid it at all costs.

They don't understand the finances as well, debt is not associated with a very negative notion and people in India feel that burden to repay it, but it's actually beneficial for the corporates to take loan and I believe this thinking is also changing amongst the new entrepreneurs

One of the major reason is that Indians are risk averse. We have been taught to stay away from loans and debts since childhood.