Lessons from Subrata Mitra on Building Enduring Indian Startups

INTRODUCTION

Subrata Mitra, co-founder of Accel India, has been at the forefront of Indian entrepreneurship for over two decades. His journey has seen him invest in and mentor several successful companies, including Flipkart, Myntra, Mu Sigma, and Cult Fit. Mitra's insights into the startup world are invaluable, offering a unique perspective on what it takes to build enduring companies.

THE STARTUP JOURNEY

Mitra has observed that no startup journey is straightforward. “I haven't seen one company that has gone straight up. Up and to the right. Not one. If somebody is telling you that, most likely lying,” he says on the Prime Venture Partners Podcast. This non-linear path is the central theme of his book, Down But Not Out, co-authored with Pankaj Mishra and other collaborators.

LONG-TERM GREED

Mitra uses the term “long-term greed” to describe the ability to optimize over long periods. This concept is rooted in the nature of venture capital itself. While VC funds typically last around 10 to 11 years, good funds in India can take 14, 15, or even 16 years to fully play out. This long-term perspective is essential for founders and investors alike.

THE COMPASS OF ENTREPRENEURSHIP

Entrepreneurship, according to Mitra, is like driving through fog. Founders rarely know what lies ahead, but they need to keep moving. The “compass” in this journey is alignment around goals, motivations, and people. “Even though there is fog, you can probably look at the compass and say, I know that I have to do these three things today and that's the north pointer that we are looking at,” he explains.

EVOLUTION AND ADAPTABILITY

The ability to evolve is crucial for founders. The skills required at one stage of a company can become liabilities at another. Mitra cites BlueStone founder Gaurav Singh Kushwaha as an example. Initially seen as a strong computer scientist and problem solver, Kushwaha later had to develop skills in team building and scaling.

THE CHALLENGE OF SCALING

As companies grow, founders must learn to delegate and let go. Initially, founders are generalists, handling multiple roles. However, as the organization expands, this model breaks down. Mitra argues that founders need to shift their focus from solving every present problem to anticipating the next stage.

THE ROLE OF COMPLEMENTARY SKILLS

Complementary skills within the founding team are essential. Mitra recalls the early days of Erasmic, when the team struggled to raise a $10 million fund without enough money to hire a lawyer. Co-founder Mahendran stepped in to handle the private placement memorandum, showcasing the importance of complementary skill sets.

THE IMPORTANCE OF COACHING

Mitra believes that coaching is essential for most founders. It involves repeatedly coming back to a problem with fresh energy. “Just because you have either succeeded or failed today, doesn't matter, come back tomorrow, let's take a fresh look and let's just go again. Is it worth going again?” he says.

CREATING A POSITIVE WORK ENVIRONMENT

Endurance does not mean permanent stress. Mitra creates a happy, friendly environment at Accel where people can joke about mistakes. He believes this not only makes for a happier workplace but also improves the quality of discussion.

MITRA’S FINAL ADVICE

Mitra’s closing advice to young founders is inward-looking. “You'll probably see a lot of pivots in your ideas, and at the end of it, you have to remain sane and be able to orchestrate that symphony well enough,” he says. “Work on yourself as to how you get better every day as opposed to thinking of what you can change in the world.”

FAQs

**Q: What is Subrata Mitra’s view on the startup journey? A: Mitra believes that no startup journey is straightforward and emphasizes the importance of resilience and adaptability.

**Q: What does Mitra mean by “long-term greed”? A: Mitra uses “long-term greed” to describe the ability to optimize over long periods, which is crucial for both founders and investors.

**Q: Why is coaching important for founders? A: Coaching helps founders to approach problems with fresh energy and perspective, which is vital for sustained success.

CONCLUSION

Subrata Mitra’s insights into building enduring startups are invaluable. His emphasis on resilience, adaptability, and long-term vision provides a roadmap for aspiring entrepreneurs. By focusing on personal growth and maintaining a positive work environment, founders can navigate the complexities of the startup journey more effectively.

CALL-TO-ACTION

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