According to two leading venture capitalists, today’s world is rapidly changing with the emergence of artificial intelligence (AI) as a driving force, and startups that can adapt quickly to change will thrive.
During a panel discussion titled “Beyond the buck: Building future-ready biz” at YourStory’s flagship event, Tamil Nadu Story 2024, TC Meenakshisundaram, co-founder, Chiratae Ventures, and Lakshmi Narayanan, executive committee member, Chennai Angels and former Cognizant CEO, elaborated on what startups can do to emerge as winners in this challenging environment.
Speaking on how to build a future-proof business, Meenakshi Sundaram said, “There will be no business in the future that does not adopt AI.” He believes that AI is a major driver for startups today to raise funds, attract talent, and enter new businesses.
Meanwhile, Narayanan believes the key to success is being able to adapt as things change in the market.
He further stated that technology has now become commonplace and businesses need to change to keep up with the changing circumstances, highlighting that sectors such as healthcare, medical technology, renewable energy, space and high technology are expected to see rapid growth in the future.
Narayanan also believes that continuity and change will coexist, citing the example of India’s information technology (IT) industry, which has spawned numerous business segments such as staffing, IT services, and other technology-enabled services. With each of these changes, organizations have been able to retain parts of their business while simultaneously exploring new opportunities.
What startup founders need now is to have the resilience to build their businesses.
“A unicorn is just a milestone and the ultimate goal should be to create an organisation that is sustainable in the long term,” Meenakshisundaram said.
He believes that entrepreneurs can only be successful if they have a long-term mindset: passion is important when starting a business, but persistence is key to seeing it through to completion.
Startups today are also faced with the challenge of a “funding winter” where it is difficult to raise capital. Narayanan said fundraising is always a gradual process, first approaching like-minded individuals who are likely to buy into the idea, and then moving on to angel networks.
“It’s important to stay engaged with long-term donors. If we continue down this path, we can secure funding for a longer period of time,” he said.
Meenakshisundaram said that in the current scenario, there are two types of businesses that will get funded: profitable start-ups and businesses that are likely to turn a profit within six to 12 months.
“We’re facing a situation where capital is actually costing us money,” he said, referring to high interest rates that are increasing the cost of raising capital.
On how the government can foster the startup ecosystem, both the speakers said there are already significant initiatives focusing on and synergizing areas such as biotechnology and drones.
