TIL Desk/Business/Mumbai/ Industrialist Ratan Tata has warned that start-ups which burn investors’ money and disappear will not get a second or a third chance. Tata, who also invests in start-ups, also said old-age businesses will recede and the young founders of innovative companies are the future leaders of the Indian industry.
The comments from Tata come at a time when many start-ups have been blamed for what is termed as “cash burn”, wherein the optimism of making money in the future makes venture funds to invest in such companies, and the companies keep incurring losses.
At its peak, e-commerce major Flipkart was
reportedly burning USD 150 million a month. “We will have start-ups which
will attract attention, collect money and disappear. Such start-ups will not
get a second or a third chance,” Tata, who was feted with the lifetime
achievement award at the TiECON awards here, said.
