Hey there!

It’s Sparsh here!👋 

Today’s post is inspired by a sharp tweet from Varun Chandak on the behavioural differences between Indian and American VCs, especially as experienced by founders pitching in both markets. 👨🏻‍💼

Instead of treating this as “who is better,” let’s unpack how each style creates different strengths, what that means for founders, and how investors themselves can lean into these superpowers. 🦸 

Let’s dive in to know more! 🚀 

🇮🇳 Indian VCs Focus on Proof

Indian VCs often lean toward evidence backed decision making. They love to see traction, revenue, improving unit economics, and early profitability signals. For a lot of them, the underlying question is simple:

This creates a strong culture of disciplined execution. Founders who raise in India usually have battle tested models, some customers willing to pay, and a clearer understanding of their market reality.📊

Indian capital, in that sense, rewards focus, frugality, and founders who know how to make each rupee count. 💸

🇺🇸 US VCs Focus on Potential

On the other side, many American VCs lean into vision and market size. They are comfortable backing big ideas early, sometimes before revenue, sometimes even before a fully formed product. The core question is often:

This unlocks a different kind of energy. Founders can think more boldly about category creation, global markets, and long term moats. 🌎

When capital comes in early around a strong thesis, it can compress timelines and help startups reach scale far faster. ⚡

🧠 Behavioural Differences Founders Actually Feel

🎯 How Smart Founders Tailor Their Pitch

The same startup can be pitched very differently depending on the investor. Smart founders don’t change their truth; they change the frame.

🇮🇳 In India, emphasise

1. 💰 Traction

   Show paying customers, retention, and cohort quality.

2. 📉 Unit economics

   Contribution margins, payback periods, and operational discipline matter a lot.

3. 🧱 Sustainability

   Talk about how the business can become resilient, not just big.

4. 🧑‍💼 Execution depth

   Show how the team has executed in messy, real world Indian conditions.

🇺🇸 In the US, emphasise

1. 🌍 Market scale

   Talk in numbers: TAM, SAM, SOM, and why now is the right time.

2. 🧠 Vision

   Paint a clear picture of how the world looks if you win.

3. 🧩 Unfair advantage

   Proprietary tech, network effects, unique data, or insight that others don’t have.

4. 📈 Scale story

   Share how capital accelerates growth curves, not just extends runway.

Same company, same fundamentals, but the story arc shifts depending on who is listening. 👂️ 

💎 The Hidden Strengths Of Both Styles

Instead of “Indian vs American,” it is useful to read this as two complementary lenses🔍:

• Indian investors shine at backing disciplined builders who can survive and grow in complex markets.🌱

• US investors shine at backing high-upside ideas with the potential to become massive platforms.💪

Founders who learn to integrate both mindsets end up far stronger: they can dream big like a Silicon Valley founder while building solid business muscles like an Indian operator. 🎯

🤝 What Investors Can Learn From Each Other

For Indian investors, there is value in occasionally leaning into earlier, more visionary bets in spaces where India can lead globally. For US investors, there is value in appreciating the craft of building efficient, capital-conscious businesses in emerging markets. 💹 

The good news is that cross-border deals are increasing, and co-investing across geographies is becoming more common. That means more founders can benefit from both philosophies on the same cap table. 🤝