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Vamshi Yadav
Ā ā¢Ā
SucSEED VenturesĀ ā¢Ā 8d
"Pakoda VC" is now a trend & I can understand why! It's India's broken system The numbers tell a grim story: middle-class incomes are shrinking as inflation (~6%) outpaces wage growth (~4%). While labor participation has risen to 60%, most new workers are forced into insecure self-employment. Corporate profits jumped 22% last year, yet employment grew just 1.5%, with CEOs' pay soaring to 40% while salaried jobs declined. Nominal Earnings Growth (2017-18 ā 2022-23) Men: āāāāāāāāāāāāāāāāāāāā 28% Women: āāāāāāāāāāāā 19% Real Earnings Decline (Inflation-Adjusted) Men: āāāāāāāāā¼ 25% loss Women: āāāāā¼ 40%+ loss Naturally, more people are turning to entrepreneurship, not out of ambition alone, but necessity. Many founders complain that VCs won't fund their "real businesses." But this misunderstands venture capital. VCs represent less than 2% of global capital and exist to fund explosive growth, not stable businesses. The real failure lies elsewhere: ā¢ Banks demand impossible collateral for loans ā¢ Government grants come with bureaucratic hurdles ā¢ Policy favors short-term handouts over real support The backing that we need: ā Accessible business loans ā Transparent grant systems ā Functional support infrastructure Private capital seeks returns. Public capital seeks votes. Meanwhile, actual entrepreneurs are left begging for scraps. Until this changes, India's business dreams will keep hitting the same walls.
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