Bury the ego, let the entrepreneur flower

Bury The Ego, Let The Entrepreneur Flower

What is VC? Ask K. B. Chandrasekhar. For KB, as is popularly known in the VC circle, venture capital is all about ‘de-stabilising a status quo'. KB is behind many creations such as Jamcracker Inc, Exoduc Communications, Great Lakes Institute Management, e4e Inc and the list goes on. In a free-wheeling chat with this correspondent, KB lets his thought flow in a cascade. In the process, he reveals the candid venture capitalist in him.

For him, VC is not just about money. It is more about the ability to spot an entrepreneur and relate to his/her idea. “This is what makes up for a good venture capitalist,” he argues. This NRI (non-resident Indian), based out of Silicon Valley, is convinced that a VC “is entitled to lose his entire capital.” What sets a successful VC apart from the rest? Though seems funny, his response sets one thinking. “Did I create enough disruptions? Did I have enough failures?” Often times, a successful disruptive creation may not result in the innovator reaping big money, he says.

“The AOL founders have to die penniless,” he says. The opposite is the case with Steve, he points out. In a dynamic world, the disruption cycle could occur at a faster pace. That is the risk a VC has live to with, he argues.

“None imagined that a Microsoft could be challenged by a Google. Or, a Google could come under Facebook threat,” says he. Why are VCs active in knowledge space? Well, KB has a ready-made answer. “Knowledge industry is easy to get in. And, it is one of the most scalable businesses,” he argues. According to him, succession of constructive destruction happens at a faster pace in the knowledge field.

VC as a concept, according to him, has evolved only in the post-liberalisation era in India. “Today, people at basic level are less risk-averse. Failure is no more a taboo. People who are successful elsewhere are willing to leave their jobs and go on their own,” he says. He is of the view that “VC ecosystem is vibrant in India today.” What are the challenges facing a VC? Well, according to him, it is not the job of a VC to impose thoughts/ideas on an entrepreneur. “You (VC) have to bury your ego and allow the entrepreneur to flower,” he says. A failure teaches a VC lot more than a success. “While a PE (private equity player) looks at financial numbers, a VC looks at the idea of an entrepreneur for its potential to trigger disruption,” says he.

“That's why you find VCs camp in Bangalore and PEs zero in on Mumbai,” he puts it succinctly.

Ultimately, as he says, it is the “joy of betting on the success of the unknown” that drives a pure-bred venture capitalist.