Tata has invested in startups like Ola, Uber, Paytm, Cure Fit, Lenskart, Car Dekho and these companies are quite successful. But most startups in the country are accused of ‘cash burn’. This is the amount of a startup’s monthly expenses before earning. At the TiECON event, Ratan Tata gave some advice along with warnings about startups. Have a look!
Warning on ‘cash burn’
Tata warned startups that have high cash burns. He said that investors who lose money by burning money will not get a chance again.
Emphasis on innovation
Tata believes that the future of startups who have done new experiments is fantastic. So they are putting more emphasis on innovation for startups.
Focus on value too
Everyone knows that the values of the Tata group are very high. Ratan Tata hopes that startups also give importance to the value factor. He strongly opposes an overnight absconding event.
No right time to go global
In an interview, Ratan Tata said that there is nothing like the right time for a startup to go global. It is the responsibility and understanding of the founders when they have to expand their global reach. However he believes that they need mentoring, proper advice and identification.
Promote the promoters to be positive
Ratan Tata also revealed the secret of the event on which he selects a startup to invest. He said that he looks for how is the attitude of the promoters of the startup, what idea has he come up with and what is his thinking about solutions.
Maturity is very important
He also sees as to how mature the promoters are and how serious they are about their new company.