Why Most Indian Startups Die Before Series A
The leading cause of death for early-stage startups isn't a bad product—it's running out of money. Here is why the 'Survival Metric' is your most important tool.
In the vibrant corridors of HSR Layout and Indiranagar, thousands of startups are born every year. Yet, statistics show that over 90% of them will not see their fifth anniversary. Why does this happen in an ecosystem filled with talent and ambition?
The Cash Illusion
Many founders mistake 'fundraising' for 'success'. After a seed round, there is a temptation to scale the team and marketing spend immediately. However, without a clear understanding of your Net Burn Rate, you're essentially flying a plane without a fuel gauge.
The 'Default Alive' Check
Paul Graham famously coined the term 'Default Alive'. If you stop fundraising today, would your startup survive? For most Indian startups, the answer is a resounding 'no'. To survive, you must track your Post-GST Runway and ensure you have at least 18 months of breathing room before your next pitch.
Founder's Verdict
Don't be a 'vanity metric' founder. Focus on the unit economics that actually make sense for the Indian market—high fragmentation and price sensitivity require efficiency, not just growth.