The Magic of Startups

Observations, Challenges, and a Path Forward

1. What I Observe

Let me start by saying this: being called a “shark” for the second time is equal parts flattering and amusing. At the IIT Delhi Alumni Day Startup event, where I found myself slipping into the role of judge, mentor, and occasional provocateur, I couldn’t help but reflect on the startup landscape.

The enthusiasm? Palpable. The pitches? Polished. The ideas? Good… but here’s the catch: good isn’t enough.

Most startups I saw were playing it safe—incremental improvements on existing products, chasing trends, or optimizing for valuations. It reminded me of something a fellow shark said to me:

"Sanjiv, when we were in IIT, we were focused on getting a job to pay the bills. Making a difference wasn’t really on the cards."

Fair point, but what about now? The stakes are higher, and the opportunities are bigger. Yet, I see founders focusing more on chasing unicorn valuations than solving meaningful problems. And it’s not just the founders—the system feels complicit. Where were the PhD students with groundbreaking ideas? Why wasn’t there even a single project that screamed, “This could change the world”?

2. A Little Fun and the Problem I’m Addressing

Let me tell you a secret I’ve learned in two decades of investing, from angel rounds to IPOs: startups are equal parts math and chemistry.

• Math is the execution: the formulas, the spreadsheets, the milestones.
• Chemistry is the experimentation: the gut feelings, the sparks, the magic of a team working in harmony.

And here’s the trick—it’s never 50-50. At different stages, the balance shifts. Early-stage startups need more chemistry; later-stage startups rely on math. The ones that fail are often trying to play pure math or pure chemistry.

This brings me to the problem: the startup ecosystem at IITs (and beyond) often leans too much into one direction—either glorifying the lone genius founder with chemistry or the meticulous executioner obsessed with math. Rarely do I see a balanced approach, and that’s a missed opportunity.

We’re producing good entrepreneurs but not enough nation-builders or challengers. Why aren’t we training students to think differently, to embrace bold risks, and to dream beyond the next unicorn?

3. A Course of Action

To create a better startup ecosystem at IITs, we need to start by shifting the mindset. It’s not about producing the next batch of app developers or SaaS optimizers. It’s about fostering leaders who ask the big questions:

• What problem are we solving, and why does it matter?
• How can this idea create real value—not just for investors but for humanity?
• What happens when we stop playing it safe?

Here’s how we get there:

1. Integrate Research and Startups Why aren’t PhD students a central part of the startup culture? Let’s bridge the gap between academia and entrepreneurship, creating initiatives that combine cutting-edge research with real-world application.
2. Encourage Mission-Driven Founders It’s a fact: founders with a mission outperform those chasing trends. The ecosystem needs to encourage purpose over profit in the early stages and help founders refine their missions into scalable businesses.
3. Create Chemistry in Teams The magic potion of a great team lies in diversity—not just in backgrounds but in perspectives. A startup where everyone agrees is doomed to mediocrity. Healthy argument drives innovation.
4. Teach the Art of Balancing Math and Chemistry Founders need to learn when to experiment and when to execute. Let’s teach them how to switch gears and adapt as their startup evolves.

4. The Curriculum: Challenging the Next Generation

Imagine a curriculum designed to train students not just as entrepreneurs but as leaders and mavericks. A program where:

• Students are challenged to think deeply about societal problems and propose bold solutions.
• They are taught to believe in themselves and in their ability to create change.
• Instructors understand the gravity of their role—it’s a privilege to train the next generation, and their job is to push students to challenge conventions.

This curriculum isn’t for the students alone—it’s for humanity. By training future leaders, we create a ripple effect that benefits us all.

5. Earning the Magic

There’s no shortcut to greatness. The magic of a startup—the chemistry of a brilliant idea meeting flawless execution—is earned through relentless experimentation, learning, and recalibration.

As I’ve seen over the years, most pure money plays fall flat, and pure mission-driven plays lack sustainability. The answer lies in the balancing act, and it’s our job to prepare students to navigate it.

The next unicorn? It’s not the goal. Let’s aim for something bigger: a generation of entrepreneurs who leave the world better than they found it. Because in the end, the magic isn’t in the valuation—it’s in the impact.