Harsh Pokharna, CEO and co-founder of bookkeeping app OkCredit, recently shared that he was “broke” and living paycheck to paycheck in 2019 despite raising ₹120 crore for his startup. Despite founding a startup, Pokharna was broke, had no savings, struggled with skyrocketing rents in the Silicon Valley of India, and lived “paycheck to paycheck”.
The reality of startup founder
“In 2019, even after raising ₹120 crore Series A for OkCredit, I was broke. I was living paycheck to paycheck. Had no savings and was still worrying about rent in Bangalore,” Pokharna wrote on LinkedIn.
The IITian CEO revealed in the post that this same scenario has played out again and again with different founders, who don’t get to enjoy the personal benefits of the millions they have raised for their startups.
“And it’s not just my story,” he said. “I’ve seen it happen again and again. Founders raising millions, and still living like college kids. Stressed about survival.”
The entrepreneur blamed venture capitalists for keeping founders in dire financial straits, as a founder with money becomes “dangerous”.
“Dangerous enough to say no,” Harsh Pokharna wrote. “Dangerous enough to walk away. Dangerous enough to build on their own terms.”
He claimed that because it is easier to control founders who are financially desperate, venture capitalists keep them in that position.
“They’re told they might ‘lose their hunger’, the CEO said. “Meanwhile, the same VCs have no problem throwing millions at serial founders who have beach houses and retirement funds.”
Founder’s advice for new entrepreneurs
The IIT Kanpur graduate next offered a piece of advice to all founders and entrepreneurs: “VCs want founders to stay poor… So if you’re a founder, don’t let anyone shame you into staying poor,” he remarked.
He further reasoned that financial security doesn’t make founders weak; it only makes them fearless.
“Build your dream. But build your freedom too,” he advised.
Bengaluru-based Harsh Pokharna launched startup OkCredit in 2017 along with Gaurav Kunwar and Aditya Prasad. Pokharna shared that in 2019, his startup raised ₹120 crore.