Exclusive: LinkedIn co-founder Allen Blue explains why India won’t ever see another Dotcom burst

The Indian startup ecosystem has seen a lot of change in the last few months. This includes top-level shakeouts, valuation cuts, shutdowns and anxiety over funding. While it’s fair to say that a company’s overall status shouldn’t worry a common employee, reports around layoffs and downsizing mean everyone’s taking sat up and taken notice now. LinkedIn Co-founder Allen Blue however feels this is a global phenomenon, and it’s nothing to be worried about.

“Funders should be cautious though. Too much enthusiasm on the part of people who fund companies doesn’t help the ecosystem to grow”, Blue told Business Insider in an exclusive interview.

After acquiring an unmatched level of funding, over $9 billion to be specific, 2015 was perhaps the best year so far for Indian entrepreneurs. 2016 has seen PM Narendra Modi inaugurating his ambitious Startup India, Standup India campaign.

Blue thinks that with startup funding consolidating and more dogged entrepreneurs coming up, the startup ecosystem is poised for growth. “A lot of the funding that’s happening here is part of the worldwide Venture capital funding that’s happening. So even if there is a collapse here, the entire ecosystem won’t go down, unlike it was 10-15 years ago during the first Dotcom burst,” he said.

While there have been reports doubting the future of startup industry, the first quarter of 2016 has already proven that wrong. In Q12016, Indian startups have already raised $1.42 billion by closing a well over 300 deals. This is well above last year’s figure of only 147 deals in the same quarter.

“India is currently building the foundation for the next generation of startups. We’re hoping LinkedIn becomes the platform where people who are working together now form their next company. That’s exactly why we built the product”, Blue concludes.

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