IVCA and Deloitte Launch Start-Up Governance Playbook to provide a stage-appropriate framework for start-ups in India
New Delhi, June 24, 2023: The Indian Venture and Alternate Capital Association (IVCA) , India’s apex industry body for alternative assets, in association with Deloitte, a leading professional services firm, launched the Start-Up Governance Playbook. The playbook provides a holistic framework of different corporate governance recommendations for start-ups to follow and streamline their journey to success. The launch of this guide is part of IVCA’s mission to educate Indian entrepreneurs on the building blocks of governance and foster a culture of trust, transparency, and authenticity in India’s burgeoning start-up ecosystem.
“As the world’s third-largest start-up ecosystem, India has achieved substantial peaks. It holds enormous potential for innovation and value creation, but certain challenges and risks can pose stumbling blocks to growth. To ensure smooth sailing, we must establish and reinforce some fundamental principles and strategies. Considering how the journey from ideation to scaling is fraught with difficulties, the corporate governance practices laid down in the IVCA–Deloitte Start-Up Governance Playbook will help entrepreneurs and investors to effectively navigate troubled waters and open up a sea of success.”
- Rajat Tandon, President, IVCA
"Governance, in simple terms is backing the right intent with appropriate actions. The speed at which start ups tend to grow, can at times lead to a gap between the stakeholder expectations on Governance and management capabilities to meet those. This 'What to do- how to do- when to do' playbook attempts to map Governance building blocks throughout the journey of startups to help them get better prepared. We hope the Founders, Investors, and the Boards utilise this resource guide to strengthen the foundation of the ecosystem as the Indian economy produces many more unicorns for the world."
- Sachin Paranjape, Partner, Risk Advisory, Deloitte India
“Effective corporate governance is crucial for every organisation including start-ups. A well-defined governance framework ensures that start-ups have a clear decision-making process based on ethical and legal considerations. Strong corporate governance promotes transparency, reduces conflicts of interest, and improves the quality of decision making. To ensure long-term success and stability of start-up businesses, it is essential for start-up founders, VCs and the management to create, implement and monitor clear governance practices at every stage of the start-up journey.”
- Nikhil Bedi, Partner and Leader-Forensic, Financial Advisory, Deloitte India
India's start-up ecosystem has rapidly grown from 452 start-ups in 2016 to over 92,000 in 2023. While significant support has been provided to foster innovation in early-stage companies, the recent funding slowdown has prompted investors to re-evaluate governance practices and operational ethics of their portfolio companies. The Start-Up Governance Playbook will guide in mitigating risks for innovative enterprises, fostering accountability and ownership among stakeholders in India's start-up ecosystem. This will allow companies in enhancing their financial performance, attracting investors, and building a strong reputation and brand value.
“To have world-class companies, the Indian ecosystem needs to have world-class governance. This playbook provides necessary guardrails for start-ups and founders to refer to at every stage of their company-building journey and we’re thrilled to see this comprehensive guide come to life.”
- Rajan Anandan, Managing Director, Peak XV Partners & Surge and Chair of the VC Council at IVCA
To develop the Start-Up Governance Playbook, inputs were sought from multiple ecosystem partners, including founders, investors, experts, and academic/research institutions, to establish a unique, holistic framework of governance for start-ups. Easy to implement and build upon, the different corporate governance practices outlined in this playbook will serve as a reference point for start-ups during each of the key growth stages.
India is the third-largest start-up ecosystem, and buoyed by the strength of India’s core fundamentals, the “India Opportunity” story is progressing at a brisk clip. In this context, laying a strong groundwork for corporate governance in the fast-maturing start-up ecosystem will bolster India’s economic promise.
About IVCA
Indian Venture and Alternate Capital Association (IVCA) is a not-for-profit, apex industry body promoting the alternate capital industry and fostering a vibrant investing ecosystem in India. IVCA is committed to supporting the ecosystem by facilitating advocacy discussions with the Government of India, policymakers, and regulators, resulting in the rise of entrepreneurial activity, innovation, and job creation in India and contributing towards the development of India as a leading fund management hub. IVCA members are the most active domestic and global VCs, PEs, funds for infrastructure, real estate, credit funds, limited partners, investment companies, family offices, corporate VCs, and knowledge partners. These funds invest in emerging companies, venture growth, buyout, special situations, distressed assets, and credit and venture debt, among others.
About Deloitte
This press release has been issued by Deloitte Touche Tohmatsu India LLP
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Mou Chakravorty
Deloitte India
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Email: chakravortym@deloitte.com