<ul><li>In a study assessing the 'patience' of capital for Indian product startups versus services startups, it was found that early-stage valuations of product (SaaS) startups closely follow those of service startups, which is not ideal.</li><li>Product startups typically require higher patience due to upfront investments in human and research capital, but in India, valuations rely heavily on customer acquisition KPIs, similar to service startups.</li><li>The close correlation between Indian product (SaaS) and service startups suggests a potential shortfall in early-stage valuations compared to more developed ecosystems like the US.</li><li>Further normalization may be needed to account for market access differences, quality of human capital, cost of capital, and other factors.</li></ul>

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