ET carries an article today on potential accounting and legal risks in the Indian ecommerce space. I doubt if entrepreneurs and investors would allow such subversions. People know well that this road doesn’t lead to heaven. Read on

On a business level, the lifetime value notion is well understood and used – and in my view is the appropriate way of looking at direct user acquisition costs. As an investor, that is the conversation I want to have with entrepreneurs to understand the health of the business at a nascent stage. Accounting is supposed to be, and should continue to be more conservative – I do not think investors are valuing early stage companies on basis of their accounting profits in any case.

Alok Mittal

Alok is a first generation entrepreneur, now in the venture capital business. Alok heads up venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Alok is also a founding member of Indian Angel Network - an organization comprising successful entrepreneurs looking to invest in seed stage businesses. Prior to this, Alok cofounded JobsAhead.com, a leading job portal which was acquired by Monster.com. Alok is an active charter member of TiE Delhi. Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.

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