For startups and organisations that are low on capital, there are many lessons to be imbibed. The best practices have emerged during survival times, which makes the organisation stronger and wiser. The real importance of cash flow and cash conservation thus dawns. There are numerous examples of companies in sectors like consumer, health care etc which have been able to demonstrate growth as well as turn profitable during times of low capital. This is when real out-of-the-box thinking happen and, hence, necessity is the really the mother of inventions. No amount of preaching works but all learning happens on self-mode when you are actively seeking solutions.
It is also seen that the importance of investment committees is so much higher now as they are the guiding force in many ways. These committees act as guiding forces focussed on capital allocation, stringent fiscal considerations, as well as validating the fundamentals of a business. There is strong merit in every player in the system thinking about the best ways of resource utilisation and make the venture more compelling for the customer and, hence, for the investors. It appears that there is a much saner sense prevailing in the system, which are opening up minds and inculcating better practices. And governance is getting better understood and being imbibed too.
In this era of heightened financial mindfulness, the impetus is on crafting compelling narratives that align with the tenets of purpose-driven leadership, superior execution, and consumer-centricity. As the industry gravitates towards these principles, it fortifies the notion that irrespective of market fluctuations, robust and purposeful enterprises will continue to find support and thrive in the dynamic landscape of PE/VC funding as well as overall business stability and growth.
First Published: Jan 17, 2024, 13:29
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