Why do they think that people don't know maths?

"Exits in India's venture-capital market, according to data compiled by Chennai-based researcher Venture Intelligence, touched $2.7 billion last year, up an impressive 56% from the year ago," wrote S Sengupta. Venture capital investors, usually very wealthy individuals or investment banks, take calculated risks by investing in startups with the expectation of selling their stakes for hefty profits once the business becomes profitable. The risks are huge, with 3 out of 4 startups failing to return the original investment amount. According to one Israeli startup investor 95% of investments are not returning enough money to justify the risks. Whereas some startups do become highly profitable, in India, "There isn't even a single success story that can claim to be a category leader or pioneer in any market globally," said a Hong Kong based official in a fund-of-funds. So how did venture capitalists make $2.7 billion last year in India? "New York-based hedge fund Tiger Global Management has reportedly sold parts of its stakes in e-commerce firm Flipkart and ride hailing company Ola, and Delhi-based venture capital firm SAIF Partners sold its stake in One97 Communications Pvt Ltd, the firm that owns online payment platform Paytm. The reported payout from just these three deals is $1.7 billion and all of that has come from a single buyer -- Japan's Softbank Group Corp." Venture funds raised a lot of capital in 2015 and 16 but there was a slump in funding internet-startups in 2017 and the volume of deals was lower, wrote M Dalal. "The number of new internet and technology start-ups launched in the first nine months of 2017 fell to 800 from more than 6,000 in all of 2016,..." However, the biggest impediment to any wealth creation in India is the tax department. The government sets targets for tax officials who then resort to intimidation based on twisted interpretation of the rules. E-commerce company, Flipkart has been making losses because of huge expenses in marketing and discounts. Marketing is an expense and discounts mean selling at below cost price, and so is a straightforward monetary loss, but the Income Tax department has asked Flipkart to spread the expense over 10 years and pay a tax of 30% on the rest. Why? Because venture capitalists are buying shares in the company at high valuations so it cannot be making losses. One startup has been asked to pay a tax of Rs 4 million on an investment of Rs 10 million, which means the investment by the venture capitalist is cut to just Rs 6 million. People attending the jamboree at Davos may applaud politely but surely they would rather pay 21% in the US than 40% in India. Why would anyone invest in India?