Is Y Combinator Causing A Long-Term Damage To India’s Tech Economy?
US-based accelerator Y Combinator has been shifting the headquarters of its
India portfolio companies to the US.
Just read really well articulated article in Inc42.
Last year, I met Neerav Jain - Founder, City Furnish ( a YC backed company )
He narrated the entire story about how he was asked to get it first registered
in US then only funding will hit the account
And he was more than happy to do it as he wanted that money at that point of
time
Me: Why they even ask to do something like that. US investors money is safe
here, we are not fighting with US
Never got the answer which was able to satisfy me.
Though "Kya fark padtha hai. Money has no color" was the closest to my
satisfaction.
Every move in Startup Ecosystem have an underlining.
Whether you raise money in the US or Singapore, your employees (expenses) are
going to be registered in India, which essentially means the Indian entity is
going to be your offshore development company.
It is almost as if your IP now belongs to a US company, and India just becomes
an offshore development centre.
But ideally, the Indian entity should be holding the IP, as well as the revenue,
from product and service sales.
#entrepreuner #skspeaks #startup
Posted by Sivesh Kumar on LinkedIn
link: linkedin.com/in/siveshkumar
US-based accelerator Y Combinator has been shifting the headquarters of its
India portfolio companies to the US.
Just read really well articulated article in Inc42.
Last year, I met Neerav Jain - Founder, City Furnish ( a YC backed company )
He narrated the entire story about how he was asked to get it first registered
in US then only funding will hit the account
And he was more than happy to do it as he wanted that money at that point of
time
Me: Why they even ask to do something like that. US investors money is safe
here, we are not fighting with US
Never got the answer which was able to satisfy me.
Though "Kya fark padtha hai. Money has no color" was the closest to my
satisfaction.
Every move in Startup Ecosystem have an underlining.
Whether you raise money in the US or Singapore, your employees (expenses) are
going to be registered in India, which essentially means the Indian entity is
going to be your offshore development company.
It is almost as if your IP now belongs to a US company, and India just becomes
an offshore development centre.
But ideally, the Indian entity should be holding the IP, as well as the revenue,
from product and service sales.
#entrepreuner #skspeaks #startup
Posted by Sivesh Kumar on LinkedIn
link: linkedin.com/in/siveshkumar