Insights · 10 July 2026

Why I don't touch high-burn companies — even the famous ones

Every few months a round comes to me with a great logo wall, a steep revenue curve, and a burn number that nobody wants to talk about. I pass on all of them, and I want to explain why, because it is the single most common disagreement I have with new members of my circle.

The question I ask is not 'how fast is this company growing' but 'what does each rupee of growth cost'. If a company burns ₹3 crore to add ₹1 crore of net new ARR, the growth is bought, not earned. Bought growth stops the moment the funding stops — and in India's private markets, funding stops abruptly and without warning.

The companies I bring to my circle sit between early traction and growth stage, with a burn profile that gives them optionality: they can raise to accelerate, but they do not need to raise to survive. That distinction is everything. A company that must raise accepts any terms. A company that can choose to raise negotiates.

This filter costs me deals. It cost me some famous ones. It also means that when a deal does reach my members, I have already answered the question they should be asking: would this business still exist if the music stopped tomorrow? If the answer is no, it never reaches you.

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