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What if a Start up fails and / or the start up founder loses financially

 What if a Start up fails and / or the start up founder loses financially

This thought just came to mind after a recent online interaction with some founders and some thoughtful people. This point came up. Call it ambitious or over ambitious. Founders may tend to resist taking a call on a business idea and investment which may not be catching traction. In any case business ventures fail. But how do we revive a start up which has failed. With huge financial liabilities. And the second point. What if he had invested his personal wealth.  Where does he or she go now.
A person, highly qualified, good background, earned wealth abroad. As did his wife. Herself high profile in education and wealth. The person in question returns to India, organises a team and organises a start up. Gets a band of good investors. They even build a vision of an IPO after five to seven years (don’t ask how so). He invests his own wealth too. The start up makes losses. They pivot, fire staff, invest more. It does not work. And folds up. Not discouraged, our founder moves abroad and sets up another start up. For the second start up, he coaxes his wife to also invest and the investors invest again. It was a new business idea in an emerging sector.  Now this has failed too. The sum lost on the personal front is in double digits in Rupees in Crore.  The founder is out of options and the wife is certainly not amused.  The point is how do they recover. This wealth is not easy to recoup. And blaming the advisors does not lead anywhere or even if some partners fail you, its happened.  Maybe a lack of monitoring closely. But the point is how to recover from this scenario.  One point, one founder did say he failed as his backers, the investors, pushed him too hard, plus their advise on retail locations was off the mark.
Most investors are unwilling to invest more, once they realise the trend or the unfolding scenario. The founder at times trusts his idea, his vision, may be plugs the gap in funds from his own wealth or funds. There is also a possibility that some founders may even borrow from the informal market, though that is a very risky bet. If this comes to happen, it can be financially very imprudent. But this happens. Many founders do understand about  striking a balance between advise and their own assessment, but projects fail.
As I say, do not fall in love with your business India, it keeps you dispassionate. Passion to plan, ground it, reorient it, certainly, but don’t get enamoured with it. That still leaves the fact, if another investor or set of investors is unwilling to step in, if the existing investor(s) back out, what options does the founder have. And if in addition, its his own wealth too which stands invested and liquidated, then what. What are the options. Any ideas.
As the founder above says,  there has to be route, a mode, to pivot and renew.
Thanks for sharing sir, If investors pull out, founders can pivot by bootstrapping, forming strategic partnerships, or seeking new investors.

Crowdfunding, asset liquidation, and debt financing are alternatives. Stay flexible, reorient, and adapt the business model to ensure resilience and renewal.

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