- Besides speaking of his financial struggles, Harsh Pokharna also shared the dark reality of startup funding and venture capitalists.
- Pokharna also revealed that founders with limited financial stability are inclined towards adhering to investors’ vision, opining that VCs want founders to stay poor.
Harsh Pokharna, co-founder and CEO of OkCredit, and an IIT Kanpur graduate, shared his surprising financial reality in a LinkedIn post. Despite raising ₹120 crore in Series A funding in 2019, he had no savings, lived paycheck to paycheck, and struggled to cover rent in Bangalore, highlighting the financial struggles many startup founders face even with substantial funding.
Pokharna attributes the paradox to systemic reasons. According to him, venture capitalists often prefer founders to remain financially strained. This dynamic gives investors more control, as founders with limited financial security are more likely to comply, stay driven, and adhere to the investor’s vision.
According to Pokharna, financial stability empowers founders with the confidence to say no, the freedom to walk away, and the power to build on their own terms. This independence, however, can be perceived as threatening by investors who seek control and influence over every move.
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When founders request modest personal liquidity, such as to pay off debt or gain financial breathing space, they’re often met with resistance. The underlying narrative is that personal wealth might diminish their entrepreneurial drive.
Ironically, Pokharna points out, these same investors readily fund serial entrepreneurs who are already financially secure, with assets like beach houses and retirement portfolios, highlighting a contradictory approach to funding and founder financial stability.
Harsh Pokharna notes that this contradiction reveals a deeper truth: financial stability can actually fuel ambition, rather than stifle it. With basic needs met, founders can think more clearly, take bold risks, and build without fear, ultimately driving their ventures forward more effectively.
Ultimately, Pokharna believes that while sacrifice is often romanticized in the startup world, financial insecurity shouldn’t be glorified. He believes founders deserve to pursue their vision while securing their well-being, noting that money empowers them to be unafraid, rather than weak.
Harsh Pokharna’s candid post resonated deeply with netizens, who acknowledged the harsh realities founders face despite securing significant funding. Many users recognized that startup success often conceals the personal financial struggles entrepreneurs endure.
The comments emphasized that financial freedom is essential, not a luxury, for driving fearless innovation and sustainable growth. Some users also criticized the stigma around founders taking fair salaries, highlighting the pressure VCs exert over their compensation, which can impact their well-being and autonomy.
Many praised Harsh Pokharna for shedding light on a rarely discussed issue, thanking him for being a source of inspiration for entrepreneurs navigating tough journeys. Some users shared their own struggles as founders, deeply relating to the emotional and financial toll of building a startup while struggling financially.
The conversation sparked broader discussions about approaching VCs, early-stage investments, and founder expectations. Ultimately, Pokharna’s post opened up an important dialogue around founder well-being and financial autonomy, giving voice to a critical yet often overlooked aspect of entrepreneurship.
According to Crunchbase, OkCredit raised a Series B round of $67 million from Lightspeed India Partners and Tiger Global Management.
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