In the past 4 month, I must have met like 40+ startup founder(s) and one thing which as always bothered me was, why Indian startup founders like to work on their own (alone is may be too stronger word here). I mean there many examples where 3-4 different teams are working on same concept, some in Delhi/NCR, some in Bangalore, some in some other city, they know that others are also working on same thing and still they keeps on pursuing that idea knowing (or probably not knowing) that in India, starting a company, running a company and making profit from that company are 3 totally different things.
Most of the guys who are starting companies are software engineers so writing code, building sites and developing software is not a big deal, it is exciting for the founders but once they finish building the product, they hit a block asking themselves, now what! Most of them don’t understand marketing and have no money for it so they can’t hire others to do marketing and to do other part of the company (other means anything and everything other then building and maintaining code), so why not all these startups join hands and work together ?
For example, lets take groupon idea, it got a huge success in USA and as expected, now India has half dozen similar sites offering exact same service, none of them has got great traction because the idea hasn’t picked up, now assuming some 20 people are working on 6 of these companies, why don’t they all join hands and form a single company ? people may say that having 20 cofounders will never work but then people also said that the earth is flat till someone showed that it is not.
Also 100 percent of Nothing is Nothing so having total ownership of a company whose valuation is zero is not something which any founder want, instead if you have a company with 20 people and a idea which is “clicking”, you will get instant 10x valuation of your company (which now has 20 employees, none taking any salary). IMO 5% of a million dollar company is always better than 100% of zero dollar company
Joining hands will also cut down the cost of expenses and increase the life of the company in case if it don’t get any revenue, infact such companies probably don’t even need any outside funding as they can make profit on their own. Now the thing is, who will roll the ball first ?