Debunking the Myths Around Startup Investing: High Risk, Long Time, and Big Money

By Ankit Anand, Founding Partner at Riceberg Ventures

When discussing startup investments, particularly in deep tech or frontier tech, a few assumptions often surface. They are labelled as high-risk, capital-intensive, and require years to show results. While these points hold some truth, they simplify the realities of investing across sectors. The common comparison with D2C (direct-to-consumer) startups often paints a picture of lower risk, faster returns, and less capital requirements. A closer look reveals that building any scalable business requires thoughtful planning, resources, and time, irrespective of the sector.

Understanding Startup Success
Startup success is a blend of measurable achievements and strategic milestones. Quantifiable success involves reaching significant benchmarks such as $100 million in Annual Recurring Revenue (ARR) and becoming profitable. Meanwhile, qualitative success revolves around achieving product-market fit and scalability, ensuring that the business is sustainable in the long run.

In venture capital, the ultimate metric ...