At a time when India’s startup ecosystem is recalibrating from hyper-growth to disciplined execution, a fundamental question is resurfacing in boardrooms: Should founders bootstrap or raise venture capital?

At Founders Forum India 2026, four seasoned entrepreneurs and operators — Rajesh Jain, founder of Netcore Cloud; Aditya Pittie, managing director of Pittie Group; Akshay Ghulati, co-founder of Shiprocket; and Naiyya Saggi, founder and CEO of EDT — debated the trade-offs between building through acquisition and starting from scratch, arguing that while both paths can create enduring companies, they demand vastly different mindsets.

Their takeaway: capital is a strategic choice—not a badge of honour.

Capital as strategy, not status

For Ghulati, venture capital was a structural necessity. Building a logistics infrastructure business required upfront investments in technology, integrations, and scale.

“We brought in institutional investors not just for capital, but for validation and governance,” he said. External capital, in his view, imposed higher standards and brought strategic insight. But it also meant accepting scrutiny. “If you don’t like being questioned, venture capital is not for you.”

Saggi echoed the importance of strategic alignment. Early-stage capital may back vision, but later-stage funding demands acceleration and clarity on capital allocation. “At every stage, your responsibility towards capital changes,” she said, underscoring the fiduciary duty founders carry once they raise external funds.

The bootstrap advantage

Jain, who built Netcore largely through internal accruals, argued that bootstrapping allows founders to think long term—particularly during downturns.

“When you are profitable, profitability itself becomes a strategy,” he said. Reinvesting earnings creates discipline and reduces the pressure of optimising for the next board meeting.

In volatile cycles, bootstrapped firms can afford patience. “You are not building for the next quarter. You are building for the next decade.”

However, he acknowledged that scale and liquidity eventually become relevant considerations. Public markets demand predictability, governance depth, and visibility on future earnings—requirements that not every business can meet at all times.

Operator vs shareholder mindset

Pittie reframed the debate around perspective. “It’s the operator mindset versus the shareholder mindset,” he said.

Even bootstrapped companies, he noted, ultimately face shareholder expectations—whether from family stakeholders, strategic investors, or public markets. The challenge lies in balancing decisions that are good for long-term business health with those that optimise shareholder value.

He also pointed to a structural shift in India’s venture ecosystem. The easy liquidity of the 2020–22 funding cycle has given way to more sector-focused, thesis-driven capital.

“Funds today have clearer mandates. They are asking harder questions,” Pittie said, adding that the scrutiny is a sign of ecosystem maturity rather than distress.

Lessons from the funding reset

Saggi addressed the fallout from recent startup failures. The “growth at all costs” playbook, she argued, often led companies to prioritise market share over unit economics.

“When you discount excessively to acquire customers, you may gain short-term traction but weaken your long-term brand and margins,” she said.

The key risk, she warned, is spreading too thin—taking multiple audacious bets without the organisational capacity to digest them. “You can take bold bets. But not all at once.”

Across the panel, there was agreement that unit economics have returned to centre stage. Profitability may not be mandatory from day one, but visibility on sustainable economics is non-negotiable.

A converging philosophy

While the routes differ, the destination appears increasingly similar. Venture-backed companies are now under pressure to demonstrate fiscal discipline. Bootstrapped firms are exploring structured capital to accelerate expansion or unlock liquidity.

The generational shift among founders was also evident. Ownership control, once fiercely guarded, is increasingly viewed through the lens of wealth creation and scale.

As Jain put it, “If you want to create enduring value—sometimes generational value—you must think about liquidity and structure at some stage.”

The message is clear: there is no universal template. Bootstrapping offers autonomy and resilience. Venture capital offers speed and leverage. But in a more mature ecosystem, endurance—not speed alone—may define success.

For India’s next wave of founders, the real question is not whether to raise capital but whether the business truly needs it.