For the last decade, Indian venture capital has largely been seen as a numbers game. Investors would walk into pitch meetings armed with standard questions, valuation models, market analysis, and assessments of founders’ DNA including qualifications, background, and domain knowledge.
The questions were predictable: What is your go-to-market strategy? How fast can you scale? What is your burn rate? How has performance been post-launch? What are the entry barriers?
Don’t get me wrong, these questions matter. They form the backbone of due diligence. Without them, investing would amount to little more than gambling. But here’s the catch: if venture investing were only about checklists and metrics, every company that ticked the boxes would be a unicorn. And we know that isn’t true.
The deeper passion behind venture investing lies in conviction, in the belief that a team, a founder, and an idea can change the world in ways that numbers alone cannot capture. It means going beyond the balance sheet and asking a more fundamental question: what is the human story here?
Why Conviction Matters
A startup is not just a business model; it is a group of people trying to solve a problem they genuinely care about. When investors back a startup, they are not just funding revenue projections, they are backing human potential and execution capability.
Take a health-tech startup, for instance. On paper, you see metrics such as app downloads, subscription revenue, and user retention. But the real story is that the product could help millions detect diseases earlier, live longer, and spend more time with their families. That is not just return on investment, it is impact. Often, this human connection is missed during pitches and investment discussions.
Or consider an agri-tech venture. You can measure farmer adoption rates and yield improvements. But the deeper story is that a farmer who once struggled to make ends meet can now send his children to school, break out of poverty, and contribute to the local economy. That is a livelihood uplift, and it is priceless. DeHaat is a classic example.
This is where conviction takes root, in the belief that a startup is not just solving a problem, but reshaping lives and contributing meaningfully to the nation and the world.
The Y Combinator Paradigm
Y Combinator, one of the world’s most successful accelerators, has long understood this shift. They don’t just ask, “What’s your product?” They ask, “What is your generational impact?” alongside growth in capital and value.Their focus centres on three human outcomes:
Livelihood: Does the startup help people earn more, live better, or escape poverty?
Lifespan: Does it improve health, extend life, or reduce suffering?
Climate: Does it protect the planet for future generations?
Consider a few examples.
Livelihood: An ed-tech startup that helps rural students access quality education. On paper, it is about user growth. In reality, it is about giving children a chance at better jobs and breaking cycles of poverty, while still building revenue and long-term value.
Lifespan: A biotech company working on affordable cancer diagnostics. The spreadsheets track R&D costs and market penetration. The conviction lies in the belief that thousands of families will not lose loved ones too early, creating impact that spans generations.
Climate: A clean-energy startup enabling small businesses to switch to solar. The financials show lower electricity bills. The bigger story is reduced carbon emissions, cleaner air, and a healthier planet, bringing the people, planet, and profit framework together.
This is the human side of venture investing. It is not about funding the next app; it is about funding the next leap in human progress.
From Valuator to Value Aligner
Traditionally, investors acted as evaluators, judging whether a startup was financially viable. Today, that role is evolving. Investors are becoming value aligners, ensuring that a startup’s mission aligns with broader human and societal priorities, while recognising profitability, scale, and long gestation periods.
The key question every investor should ask is simple: if this company scales to its full potential, will the world be objectively better off?
If the answer is yes, the investment becomes more than a financial bet. It becomes a conviction bet. A belief that founders can deliver both profit and progress, without losing sight of people.
Consider a fintech startup that helps migrant workers send money home at lower costs. Financially, it is about transaction volume. The conviction is that millions of families gain higher disposable income, better nutrition, and improved living standards.
Or a food-tech company that reduces food waste by connecting restaurants with NGOs. The numbers reflect cost savings. The conviction is fewer people going hungry and less waste ending up in landfills.
This is the evolution of venture capital from valuations to values.
Purpose Beyond Profit
Capital today is more discerning. Investors and limited partners are asking tougher questions: what is the impact? What is the ESG alignment? How does this contribute to long-term value creation?
This shift is especially visible from Series B onwards, as larger institutional investors come in as LPs and actively assess alignment with the UN Sustainable Development Goals (SDGs).
ESG (environmental, social, and governance) is no longer a buzzword. It is a baseline requirement. Companies that ignore ESG are increasingly viewed as risky, not just financially but reputationally.
Real-world problems are interconnected. That is why impact is rarely one-dimensional.
An ed-tech startup may contribute to quality education (SDG 4), reduced inequalities (SDG 10), and decent work and economic growth (SDG 8).
A clean-water startup may address good health and well-being (SDG 3), clean water and sanitation (SDG 6), and climate action (SDG 13).
A renewable energy company may align with affordable and clean energy (SDG 7), sustainable cities (SDG 11), and responsible consumption (SDG 12).
By demanding multi-pronged impact, investors are de-risking their bets. Startups that address multiple systemic issues tend to be more resilient, more sustainable, and better positioned for long-term success. Increasingly, VCs at Series B and beyond expect alignment with at least three SDGs, alongside profitability and growth.
The Shift Is Real
Venture capital is moving from checklist investing to conviction-led investing. Financial discipline and thesis alignment still matter but they are no longer sufficient. The true differentiator is whether a startup can improve livelihoods, extend lifespans, or protect the climate.
For investors, this marks a shift from valuators to value aligners. For founders, it means building businesses not just for profit, but with purpose.
The next wave of unicorns will not only be financially strong; they will be deeply human-centric. History shows this clearly from the long-term impact of the Tata Group to global examples like Microsoft and Google, where scale is matched by broader societal ambition.
In the end, venture investing is not just about capital. It is about conviction. And conviction, when rooted in human progress, is the most powerful investment of all.
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