For Indian startup founders, obtaining funding has changed silently from a time-limited capital raise to a long, resource-draining process that can last six to nine months or even longer. What used to be expected to end in a quarter is now happening over several quarters, even for organisations doing well.This isn’t just a one-time thing or a short-term market slump. Investors are changing how they think about risk, invest money, and hold people accountable. This change is making it take longer to raise money at all levels.From belief to constant reviewThe primary reason for the delay is that the way investment decisions are made has changed.Before, the steps for raising money were rather clear: pitch meetings, a term sheet, due diligence, and closing. Today, due diligence has grown into a longer examination period. Bankers in the industry claim that due diligence is taking longer, with investors having enough time to see two full quarters of operating performance.Monthly updates to the management information system (MIS) now work like a live audit. They include data on revenue, costs, recruiting, churn, and the pipeline. Investors might check to see if founders can truly deliver on the figures over time, rather than just relying… Read MoreYourStory RSS Feed
