World’s Biggest Funding Event turned out to be a Hoax
In this edition, we will discuss the widely publicized news on “World’s Largest Startup Funding Fraud.”
A three-day convention in Noida, was marketed extensively as the “World’s largest startup-funding event”. Hundreds of unsuspecting people from the startup ecosystem spent large amounts to be a part of it, but it turned out to be a sham.
Assume you are a founder with an amazing idea, the funding market is subdued, or your startup is running out of funds to scale.
In such a case, one is tempted to believe that you only need one chance to get in front of the VCs. Suddenly you come across a polished social media post from a credible-sounding “World Startup Convention” with an attractive caption “World’s Biggest Funding Festival Ever”. This is accompanied by images of prominent ministers, corporate leaders such as Sundar Pichai, and global tech visionaries such as Elon musk, as part of the invited dignitaries, to create an impression on unmissable networking opportunities.
A quick look at the website statistics further enhances the FOMO factor. It claims the event to have an attendance of 1,500 venture capitalists, 9,000 angel investors, and more than 75,000 startups around the world.
Legitimacy is further established by claiming access to government grants. The event is endorsed by popular Indian Influencers’ like Ankur Warikoo, Raj Shamani, Prafull Billore, and Chetan Bhagat through their promotional videos – selling the proposition that you can get funded in just three days at this conference, and why should you attend?
Invariably, a lot of folks trust the influencers’ word and end up signing up for the event even if the event charges a premium (INR 5-10K) because it may be the only chance to meet with so many VCs at once.
D-day finally arrives on March 24, and you arrive at the convention to find an empty hall. No Elon Musk, Gautam Adani, or large VCs. And then, realization dawned upon the audience that they have been shortchanged.
The “World’s Biggest Funding Festival Ever” was no less than a scam, with select business founders paying substantial amounts to put up a stall and pitch to “10,000+ Investors,” as advertised. On the event day, not even 10% of the promised number of investors were identified. The quality and professionalism of those in attendance were suspect.
Incidents like these create an atmosphere of mistrust in the startup ecosystem. This has a spiraling effect on new investors who view startups and investments with suspicion. At ESV, we aid businesses with ever-vigilant decision-making and partnerships. We nurture in the founders we work with, the invaluable ethic that entrepreneurship is a journey with ups and downs, where there are no shortcuts.
We must stay focused on our goals, be tough in the face of obstacles, and pursue our passion with unshakable zeal.
Startup Funding Summary
Fashinza, Gurugram-based fashion supply chain startup, has raised $30 Mn in a funding from Mars Growth Capital and Liquidity Group – Read More
The Souled Store, Mumbai-based lifestyle product startup, has raised $16 Mn in Series C funding round from Xponentia Capital Partners, Elevation Capital and RPSG Capital – Read More
Vitraya Technologies, Mohali-based healthtech startup, has raised $5 Mn in Series A funding from StartupXseed Ventures, Season Two Ventures, Cactus, Xceedance and other HNIs – Read More
EazyDiner, Gurugram-based horeca startup, has raised $5 Mn in a funding from DMI Alternative Investment Fund’s Sparkle Fund – Read More
Nimbbl, Mumbai-based payment gateway solutions startup, has raised $4 Mn in a combined Seed and Pre-Series A funding from Groww, Sequoia Capital India, Global Founders Capital, Amara VC, Kunal Shah, Amrish Rau, Jitendra Gupta, Prajit Nanu and Srinivas Rao – Read More
M&A Snippets
New Delhi-based automotive component manufacturer Lifelong India has acquired Gurugram-based car care platform GoMechanic for an undisclosed amount – Read More
Bengaluru-based health insurance third-party administrator Medi Assist has acquired Faridabad-based healthcare Insurance provider Raksha Health Insurance for an undisclosed amount – Read More
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