India’s startup industry is strong and growing quickly, yet it still has a lot of structural issues. Some major issues affecting Indian businesses today have been noted by the founder of the renowned venture capital firm Rukam Capital: funding access and trust deficits.
1. Funding Access Remains a Key Barrier
Finding consistent and sufficient funding is still very difficult, even with India’s booming entrepreneurship. The founder of Rukam Capital, Archana Jahagirdar underlined that in the current economic climate, it is challenging for entrepreneurs in their early and even growth stages to raise capital. Investor sentiment has changed to one of caution, especially in view of the unpredictability of the global economy and a preference for profitability over rapid expansion.
2. Trust and Transparency Issues Hamper Growth
Rukam Capital’s leadership thinks that Indian startups should be more transparent about their financial reporting, customer relationships, and governance. Trust is an important but sometimes overlooked factor in the startup market. A number of high-profile events and corporate failures in recent years have frightened investors and customers, prompting increased monitoring of the ecosystem.
Looking Ahead
Even though India is still one of the most alluring places for new businesses to innovate, these basic problems must be fixed. To create an environment that is open and conducive to innovation, policymakers, venture capital firms, and startup entrepreneurs must collaborate.
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