Second Innings: Entrepreneurs Launch New Ventures Amidst Industry Shifts
In the past 12 to 15 months, the technology and venture investment landscape has experienced a significant reset. During this time, over a dozen entrepreneurs have transitioned from their current roles at established startups to embark on new ventures.
Emergence of New Founders from Established Startups
According to data from Longhouse Consulting, many of these entrepreneurs fall into one of two categories: those whose companies achieved a certain scale and are now looking to explore different segments, and those whose original startups faced difficulties, leading to restructuring or closure.
Success Stories: Founders Making Their Mark
One notable example is Mayank Kumar, the founder of Upgrad, who stepped down from his executive role in October of last year. Kumar has successfully raised $7 million for his new venture, Borderplus, which focuses on cross-border workforce skilling.
Similarly, Priyanka Gill and Naiyya Saggi, co-founders of the struggling house of brands firm Good Glamm Group, have also ventured into new territories. Gill, who left an active role in early 2024 to join Kalaari Capital, launched a lab-grown diamond brand named Coluxe in February this year.
Saggi followed suit, recently founding a consumer electronics startup called Edition after also stepping back from her role at Good Glamm Group.
Emerging Second Innings
The entrepreneurial spirit continues to thrive, as demonstrated by Karan Mehta and Sonali Jindal—two of the four co-founders of digital lending platform Kissht. They recently announced the launch of their new debt resolution platform, Rezolv, after securing $3.5 million in seed funding from early-stage investment firm 3one4 Capital.
The Nature of Entrepreneurial Spirit
As Madhur Nevatia, partner at Longhouse Consulting, notes, “A company may be built up and doing well, but some founders are inherently entrepreneurial and possess a high-risk appetite. Their past successes also enhance their ability to incubate new business ideas.”
The Advantage of Credibility
For Kumar, the credibility gained from his previous ventures is proving invaluable. “It becomes easier to build a team because I have the credibility to attract the right talent,” he noted, highlighting the benefits of prior experience in recruitment and mentorship.
However, Kumar acknowledges the heightened expectations that accompany this credibility, emphasizing the need for well-structured and streamlined operations in his new startup.
Lessons from Previous Ventures
Vijay Arisetty’s experience is also worth noting. After stepping down as CEO of Tiger Global-backed Mygate, he launched Aurm, a company providing secure locker services. Arisetty explained that while new ventures come with unique challenges, prior experience facilitates better decision-making, particularly concerning risk management.
Emerging Technologies and New Ventures
As the deeptech and artificial intelligence (AI) sectors continue to expand, many founders are departing their operational roles to pursue opportunities in these innovative fields. Longhouse Consulting’s Nevatia remarked, “Several founders are exploring emerging technologies like AI, as their original companies may not have been AI-first.”
Azhar Iqubal, founder of Inshorts, resigned from his CEO position in April last year to launch Fenado AI—a platform that empowers users to create applications or websites without coding.
Additionally, former ShareChat founders Bhanu Pratap Singh and Farid Ahsan have initiated General Autonomy, a Bengaluru-based industrial robotics startup that recently secured seed funding from India Quotient and Elevation Capital.
In a similar vein, Shreyans Sancheti of the edtech startup Bluelearn—shut down in July 2024—has now founded Linkrunner, an AI-based marketing research platform.
Conclusion
As the entrepreneurial landscape responds to the changing tides of the industry, it’s evident that experienced founders are using their knowledge and networks to navigate new ventures successfully. This trend of stepping away from established roles to pursue innovative ideas reflects the resilience and adaptability of entrepreneurs in today’s dynamic market.
Questions and Answers
- What trends are emerging among entrepreneurs over the past year?
Many entrepreneurs are stepping down from their roles at established startups to launch new ventures, often in different or emerging sectors.
- Why are founders transitioning to new businesses?
Founders are either seeking to explore different segments after achieving scale in their previous companies or are pivoting from struggling startups.
- What is Borderplus, and who founded it?
Borderplus is a startup focusing on cross-border workforce skilling, founded by Mayank Kumar after he stepped down from Upgrad.
- How does past experience impact new entrepreneurs?
Past experiences provide credibility, making it easier to attract talent and resources. They also facilitate better decision-making in new ventures.
- What sectors are gaining traction for new startups?
Deeptech and artificial intelligence (AI) are notable areas where many founders are now launching new ventures, reflecting a shift towards innovation and technology.
