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The Technology VC’s Dilemma – Network versus Expertise

Basab Pradhan on why tech entrepreneurs in India who target the US market have problems getting funding from US-based VCs:

“VCs like to keep the management of their investee companies as close as possible to where they are. Sequoia, I believe, doesn’t invest in companies that aren’t in or won’t move to the Bay Area. What this means is that entrepreneurs in India don’t have access to VCs in the US. They will typically have to go to VCs in India. However, out of these Indian VCs, only some will have the experience in developed markets that is necessary to evaluate an investment opportunity. And those few that do, because they just moved into India, will be ill placed to help their investee companies – no networks in India and too far away from the US to actively help in making connections there.”