Beyond Capital: The Values Fueling India's Next Startup Wave "The real test begins after USD 5 million when follow-on capital becomes scarce," said Vineet Rai.

India's startup ecosystem is expected to reach a valuation of USD 1 trillion by 2030, according to reports from KPMG and the Confederation of Indian Industry (CII). This projection is based on the rapid growth and contribution of startups to the Indian economy, with several reports also predicting a sharp rise in the number of startups and unicorns in the coming years.

With more than 100,000 startups and expanding venture capital participation, India stands among the fastest-growing entrepreneurial hubs globally. At the "Entrepreneur 2025" event held in New Delhi, prominent venture capitalists shared their insights on "Investing in India @2025 – Capital, Confidence, and New Frontiers."

Vineet Rai, Founder of Aavishkaar Group and Managing Partner of Aavishkaar Capital, reflected on how the investment landscape has evolved over the years. He said, "When I started off, I would catch people walking on the streets, give them money to start ventures, and hope they wouldn't run away with it."

He explained that while early-stage fundraising has become easier, scaling remains a critical challenge. "It's far easier today to raise half a million dollars," he noted. "The real test begins after USD 5 million when follow-on capital becomes scarce." He described this stage as a point where many promising ventures struggle to find sustained support.

Abhiram Bhalerao, Partner at V3 Ventures (Verlinvest), shared his perspective from the consumer investment space. He mentioned that today's market demands sound financial discipline and stronger fundamentals. "Investors care a lot more about core business metrics, profitability, and sustainable financial models," he said.

Abhiram added that raising capital has become tougher at the growth stage as investors prioritise long-term viability. He highlighted the importance of measured funding decisions, advising founders to "raise as much as is sufficient for the next milestone, not at a valuation higher than they deserve." His focus remained on building value early while maintaining founder ownership and accountability.

Vineet said, "Balancing integrity with greed is a necessary evil but also a necessary ingredient for success." He noted that good governance practices are vital for a company's sustainability.

Abhiram added that investors often play a vital role in building corporate structures. "We do a lot of hand-holding: forming boards, ensuring compliance, and establishing governance systems," he shared. "Good governance at an early stage prevents bigger problems later."

Adarsh Menon, Partner at Fireside Ventures, spoke about India's consumer transformation. He said, "We are at the tip of the iceberg when it comes to brand building in India." He explained that three trends: youthful demographics, rising affluence, and digital literacy, are shaping the country's consumption patterns.

With India's consumer economy projected to expand from USD 2 trillion to USD 4 trillion by 2030, he believed that both local and regional brands would emerge to meet diverse consumer needs. "Younger and wealthier consumers will seek fresher, more relatable brands," he said.

Sera Arora, Partner at Bharat Founders Fund (BFF), described her firm's collective approach that combines capital with operational guidance. "We've built a network of seasoned operators who support founders not just with funding but also with experience," she explained. BFF, while sector-agnostic, has shown strong interest in deep tech and AI.

Sera mentioned, "Building a product today doesn't take six months—it takes three days if you know how to use AI." However, she cautioned that identifying truly innovative, India-centric startups remains a challenge. She mentioned examples such as Kookar, a kitchen management startup, and TERAFAC, which helps SMEs streamline workflows; both designed to solve practical local problems.

Ankur Pahwa, Managing Partner at PeerCapital, outlined his firm's focus areas and the emerging opportunities ahead. "We're investing behind two big themes: digitisation of India's GDP and applied AI," he said.

He highlighted sectors like health tech, clean energy, and semiconductors as vital for India's growth. "Health tech, especially geriatric care and integrated health stacks, will play a key role as India grows older and more urban," he explained. He also spoke about the importance of private participation in building these sectors alongside government efforts.

Vineet Rai pointed out that India has seen significant government-backed initiatives to promote entrepreneurship. He mentioned the INR 10,000 crore Fund of Funds launched in 2016–17 and newer deep tech programs designed to strengthen domestic innovation. "When I first heard that number, it felt huge," he said, "but when I tried investing in a cell manufacturing venture, I realised two gigawatts of capacity would need more than that entire fund."

The discussion reflected a shared belief that India's future growth depends on responsible investment, innovation, and partnership between capital and creativity.

A key takeaway from the conversation was captured in this line:
"Capital alone does not build nations—it is confidence, character, and collaboration that transform economies into ecosystems."

So India's next decade will belong to those who combine innovation with integrity, building enterprises that not only grow but also endure.