The path to startup success now extends beyond intelligence quotient (IQ) and emotional quotient (EQ) assessments. A new factor has emerged that is capturing the attention of founders and investors alike: the governance quotient (GQ). Aman Gupta, the co-founder and CMO of Boat, a dynamic startup, highlighted the increasing importance of GQ during a recent discussion.
“Apart from other things, founders need IQ, EQ, and GQ. Governance quotient now will become more important than ever, and it’s good for the ecosystem that corporate governance is taken seriously from Day Zero,” Gupta tweeted. His words emphasize the significance of strong corporate governance practices right from the inception of a startup.
Deep Bajaj, an angel investor and founder of FemTech startup Sirona, echoes Gupta’s sentiment. Bajaj emphasizes that startups must establish robust structures and practices, particularly as they secure funding. He points out that funded startups possess external accountability and the resources necessary to focus on implementing effective practices. Bajaj underscores the criticality of laying a strong foundation, as failure to do so can lead to a treacherous path to recovery.
In line with the growing importance of governance in the startup ecosystem, the Startup20 summit, held during India’s G20 presidency, proposed a comprehensive 63-point self-regulatory framework. Released in June of this year, these thinktank recommendations are designed to guide startups from the early stages to the initial public offering (IPO) phase. This framework aims to foster responsible governance practices within the Indian startup community.
In parallel to this development, Google, the global technology giant, has handpicked 20 Indian startups to participate in its highly sought-after accelerator program. This program serves as a launchpad for promising startups, equipping them with the tools and resources needed for exponential growth. The selected startups will gain access to Google’s extensive network, mentorship from industry experts, and tailored support to accelerate their growth trajectory.
Google’s accelerator program presents an unparalleled opportunity for these Indian startups to connect with renowned professionals, expand their business networks, and leverage Google’s cutting-edge technology and resources. This recognition by Google paves the way for these startups to achieve new milestones and make substantial contributions to the Indian business landscape.
As the startup ecosystem continues to evolve, the integration of effective governance practices emerges as a crucial success factor. Founders who embrace the governance quotient alongside intelligence quotient and emotional quotient position themselves for long-term sustainability and growth. By prioritizing robust governance principles from the outset and capitalizing on opportunities like Google’s accelerator program, Indian startups are primed to thrive in the dynamic and competitive business environment.
The selection of 20 Indian startups for Google’s accelerator program, coupled with the growing emphasis on the governance quotient, ushers in a transformative period for the Indian startup ecosystem. Founders who recognize the importance of governance practices and seize opportunities for growth are poised to chart remarkable achievements, fueling the growth and prosperity of the Indian business landscape.