“It was the best of times — the spring of hope and winter of despair” — Charles Dickens, when he wrote this did not expect that this line will be one of the most used quote to describe scenarios and ecosystems — where uncertainty rules.
2023 — could be the same … unpredictable — That’s what it will be like .
But what will not change is the basics of building a business . Some of the new age business built in India — Zoho , Zerodha ( looks like names starting with ‘Z’ are of a different class all together ) are boot strapped , profitable and with double digit growth . ( Well Zepto is an exception … what say ?)
Is it an aberration ? Or majority of the builders of business wants steroid capital to grow …
Which asset class can deliver the highest return ? With all the volatility around — will Gold?……be the asset class which will be in the green throughout 2023 ( Remember thru November & December of 2022- Gold was the standout asset class )
What about Venture Funding — like the old saying .. ‘ Water- Water everywhere , not a drop to drink ‘. So we have ‘ money – money sitting for deployment but not enough being deployed’ !
Will this scenario of lack of sufficient capital to the early stage entrepreneurs continue?
Yes and No .
Yes — For the builders who have a plan only for growth at all cost .. and wanting to capture the market share … and look to be last person standing …. Finally , who will be the last person standing ?
No- The builders who have a specific plan for growth , unit economics and profitability .. will get more than the capital being requested .. Good place to be in … what say ?
And what are the sectors to invest in Venture Capital ?
Auxano thesis will play out — Invest in next gen — tech enabled , consumer focused business which has a secular / subscribed income .
And what about India’s favorite game — cricket? IPL in Apr — May and the World Cup in India in Oct — Nov’23 , the home country favorite tag — will it be the winner ?
Nov’23 — here we come again
Author (s):
Brijesh Damodaran
