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Delhi’s CEO compares Bengaluru’s startup scene to Kota’s JEE boom in 2005. Check out four reasons why

Delhi-based CEO Shantanu Deshpande lists four parallels between Bangalore’s current startup ecosystem and Kota, the coaching hub for IIT JEE aspirants in 2005. He calls this the “ecosystem delusion,” where an environment rich in resources and networking opportunities can sometimes induce a false sense of success in participants.

He gave four reasons why “Bengaluru today reminds him of Kota in 2005”. Thousands of students flocked to the city of Kota because they believed that simply being in the same place as the best, attending the same tuition classes and having access to the best resources would ensure their success. However, only a small proportion of them actually cracked the IIT JEE exam, while the majority fell into the trap of complacency – believing that being close to success was the same as the hard work required to achieve it.

In his post, Deshpande called Kota the “Mecca of IIT-JEE” and stressed that it offers a well-designed environment for success. “Every year, a single coaching institute produces around 4-5 top graduates with single-digit marks. Students have access to exceptional teachers, the best books and infrastructure designed to encourage success – everything from canteens to photocopy shops and rental PGs,” he explained.

However, Deshpande also pointed out that only a fraction of the 40,000 applicants who arrive in Kota actually pass the exam. “About 30,000-35,000 students assumed that just being in Kota would guarantee them success in the JEE. They thought it would be enough to attend the same classes, eat in the same canteens and own the same books as the best students. Instead of concentrating on studying, they spent more time talking. They convinced themselves that discussing Irodov problems was equivalent to actually working through them,” he noted.

Deshpande sees a similar pattern in Bangalore’s startup culture today. The city, known for its iconic companies like Flipkart and Ola, has become a hotspot for aspiring entrepreneurs. However, many of these founders, armed with a PowerPoint presentation and some networking contacts, fall into the same trap as the students in Kota. They believe that attending the same events as successful entrepreneurs or getting a LinkedIn connection from a venture capitalist is enough to help them succeed.

He points out that while Bangalore’s startup scene has successes, it also houses a significant number of founders who are all talk and confuse belonging to the ecosystem with real progress. This can lead to an unhealthy sense of entitlement, where founders are more concerned with impressing VCs and hitting milestones for vanity than building sustainable companies. Deshpande’s advice to founders is clear: distance yourself from the noise of the ecosystem and focus on your business. He suggests seeking mentors outside the city to gain a broader perspective and avoid the pitfalls of “ecosystem delusion.”

Internet reacts to the LinkedIn post

A user commented on Deshpande’s post, sharing his personal experience as a resident of Kota and someone who has also lived in Mumbai and Bangalore for a long time. He agreed with the CEO’s observations and highlighted that the concentration of high achievers and those with single-digit ranks in Kota is actually a result of the powerful ecosystem that the city offers. He further suggested that India needs more such ecosystems across the country and highlighted Jaipur as an emerging hub, especially in the DTC fashion sector.

Another user disagreed with the CEO’s post and drew a distinction between the limited number of JEE top rankers and the huge potential for startups. He argued that unlike the limited pool of JEE achievers, the opportunities for value creation through startups are unlimited. According to him, it takes those initial 1,000 dreamers or pretenders to eventually produce 10 builders, 2 of whom could create a sustainable impact.

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