Reason why VC Firm Didn’t invest in Rahul Yadav’s Housing Startup

You surely would have seen the inaugural advertisement of Housing. Housing is a startup which defines itself with a ^ symbol. The startup is founded by 26 year old IIT Bombay graduate Rahul Yadav.

In march this year, Rahul Yadav wrote a really reactive letter to an employee of a Venture Capitalist Firm. Yadav was unhappy with this VC Firm for two reasons: One, the VC didn’t find Yadav’s start-up worthy enough to invest in; and two, the VC took into employment a person, who earlier worked at Yadav’s Start-up. Lets not go into who of the two was at fault. Even when Yadav had real reasons to be disappointed with the VC’s conduct, still he shouldn’t have used the words such as ‘unethical’, ‘dishonest’ etc in his letter to the person.

Why? As these words have no place in a professional World. Understand it this way, you can’t call some one unethical simply because the other person took away your employee or didn’t invest in your start-up. Understandably though, the VC firm didn’t react to Rahul’s public attacks on it and its employee.

A couple of days ago, Rahul Yadav once again became a news, when he announced to distribute his entire shareholding in Housing (4.5% stake), worth Rs 150-200 crore to the company’s employees.

According to reports, Yadav was seeing some opposition within housing and in order to retain the CEO post he announced his entire stake give-away.

Rahul has now challenged fellow IIT alumnus Olacab’s CEO Bhavish Aggarwal and Zomato CEO Deepinder Goyal to return half of their stakes to the employees.

Both of them set aside the challenge as a joke.


When I first saw Housing’s advertisement trying to explain everything with the ^ symbol, I was amused. As the very long advertisement didn’t convey anything clearly.

When Rahul Yadav attacked the VC and the employee, I thought he might be immature.

But with his latest decision to give away his entire stake in Housing, I’m convinced that Rahul Yadav is very immature.

Immaturity, among other things could be one of the reasons why the VC Firm didn’t invest in his Startup.

Why I think so?

One, you can’t treat money with such discourtesy. Even when one believes Yadav that he is distributing his stake because 26 years is too young an age to worry about money, still the decision doesn’t present him much wise. As a matter of fact, Facebook founder Mark Zuckerberg became a billionaire before 26. That apart, how will an investor trust him or his company when he shows such carelessness for money. Now, it’s his money, what if he leaves everything midway and heads to the forest?

Two, if he made the announcement to retain his followers, then the decision becomes even more questionable. As you can’t get loyalty by constantly doling out money.

And three, a startup whose founder uses money to keep the house in order and productive, is not worthy enough to invest in. Don’t know of others, but the decision doesn’t seem to help the company.

EmotionaL Quotient (EQ) or Maturity or Experience

To end, Rahul Yadav’s case simply tells why one should have a good Emotional Quotient (EQ) to be keep things in order and to be successful.

EQ actually decides whether a person will take action before thinking or do the other way round, i.e. Think Before Act. See how Rahul Yadav’s one action has led to series of other weird decisions.

You as a young man or a woman, must know why maturity or EQ is vital in today’s Professional World. EQ, the number value assigned to Emotional intelligence (EI) is our ability to recognize one’s own and other people’s emotions, so that one can discriminate effectively between different feelings and label them appropriately, and to use emotional information to guide thinking and behavior. Having a high EQ is not a meagre achievement.

Take for instance Rahul Yadav. He managed to offend almost everyone who he will need to grow his professional career. How, by speaking before thinking; or by acting reactively to situations. Make sure you don’t do this in your new job or current job.