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Industry leaders believe good governance is more important than having the highest market cap for startups

New Delhi, March 20 (IANS) Top industry leaders have emphasized the importance of running a clean company with honest practices and good governance over focusing solely on market cap. In a conversation with Kunal Shah, veteran investor Sanjeev Bikchandani emphasized the need to build a company for all shareholders, not just for personal gain.

Bikchandani highlighted the leader’s role in ensuring that there are enough buyers when someone wants to sell their stock. He stressed the importance of creating trust with co-founders, colleagues, and shareholders, emphasizing integrity, consistency, competence, and benevolence as the key principles of trust.

According to Shah, any error by an individual within a company can impact the entire ecosystem. The industry veterans are optimistic about the future of Indian internet companies but underscored the importance of good governance and ethical practices over prioritizing market cap.

Bikchandani advised founders to consider going public only when their profit streams are strong enough to support it, while Shah suggested that companies should go public only after running eight quarters like a public company. The emphasis remains on building trust and ensuring the success of all stakeholders in the long run.

IANS

IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

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