Path to profitability is via good governance | Unusual Suspects

Is this a moment of inevitable reckoning for India’s top startups? The funding winter has continued beyond 2022 and is fast approaching to extend beyond 2023 as well. It is becoming clearer that selectivity in deal making will increase, with a focus on path-to-profitability, especially in growth- to late-stage companies.

From unicorns and decacorns, the word cloud for Indian startups are now dominated by words such as fiduciary irresponsibility, poor governance, lack of financial control systems, revenue recognition metrics, money swindling, and human resources bungling. Is it a case of a few rotten apples or a systemic problem?

What about the role of VCs? In a rush to drive up valuations, shouldn’t they also apportion part of the blame, given that they too have a responsibility towards proper running of their investee companies? Given the recent turn of events that has brought down many unicorns with multiple down rounds, is corporate governance, besides the business model and the idea, going to be a defining pillar to draw top dollars from investors? Tune in to find out