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Aakash kashyap
Building JalSeva and...ย โขย 1y
โโImportant For All โโ A $450 million Indian startup, Zest Money, shut down due to strict RBI regulations, highlighting the risks of external factors in business. ๐ $450 million valuation: Zest Money was a leading player in the buy now pay later sector. ๐ Industry downturn: 355,000 startups shut down in 2023, nearly double from the previous year. ๐ฐ Venture capital reliance: Many startups faced closure after relying heavily on VC funding. ๐ RBI regulations: Zest Moneyโs downfall stemmed from strict consumer lending regulations imposed by the RBI. โ๏ธ Importance of compliance: Regulatory changes can significantly impact even established Businesses. ๐ Cautious investors: Investors have become more selective, contributing to startup failures. Key Insights: ๐ Valuation vs. Viability: A high valuation does not guarantee success; external factors like regulations can derail even strong businesses. ๐ Surge in Closures: The drastic increase in startup shutdowns indicates a challenging environment for new ventures, reflecting investor sentiment and market conditions. ๐ฐ Venture Capital Risks: Over-reliance on venture capital can lead to vulnerability; startups must diversify their funding sources to ensure sustainability. ๐ Regulatory Landscape: Understanding and adapting to regulatory changes is crucial for startups, as compliance can make or break their operations. โ๏ธ Investor Selectivity: A shift towards cautious investment strategies by venture capitalists can create additional pressure on startups to prove their worth. ๐ Market Awareness: Startups need to stay informed about market dynamics, including regulatory landscapes and investor behaviors, to navigate risks effectively.
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