Why Indian Startups Dont Invest in R&D [Video]

In India, the number of VCs and angel investors that are getting interested in AI startups is skyrocketing. It is often believed that most of them don’t even have a thesis while investing in these startups, but the same goes for several startups that are innovating, or at least hoping to, in the space.

Most of the Indian AI startups are powered by Jugaad, not VC money, which makes it harder for them to put those funds into R&D. Instead, they focus on the North Star Metric, often called the valuation, and bringing profitability earlier for their investors, giving them an exit. 

But this hampers what Indian startups can achieve if given enough money and time to focus on R&D. At the same time, VCs are hesitant to invest in startups that are focusing too much on R&D, as it would take a lot of time for the company to even reach a hint of profitability. 

Prayank Swaroop, partner at Accel, saidthat VCs …