I had the honor of joining the Startup-Investors Forum as a panel speaker alongside Dr. Saarthak Bakshi.CEO Risaa IVF a well-respected thought leader in the startup ecosystem. at the NASSCOM Innovation Hub. Gurugram. We discussed an essential topic for startups: Equity vs: Debt Financing. What’s Right for Your Startup?
Who is Dr Saarthak Bakshi?
Dr. Saarthak Bakshi is the CEO of Risaa IVF and International fertility Center, a leading fertility clinic. With a wealth of experience in the field of reproductive health, Dr. Bakshi and his Mother Dr Rita Bakshi dedicated his careers to helping individuals and couples achieve their dream of parenthood. As a renowned expert in IVF and fertility treatments.
What is NASSCOM Innovation Hub?
NASSCOM Innovation Hub in Gurugram is a prominent center designed to support the growth of the Indian startup ecosystem. It serves as a collaborative space where startups, entrepreneurs, investors, and industry experts can come together to share ideas, innovate, and network. The hub is part of the National Association of Software and Service Companies (NASSCOM), which is a key trade association representing the technology and business process management industries in India.
Key Insights on Equity vs: Debt Financing
In our session.we explored two primary types of financing for startups.
Equity Financing
Dr. Saarthak Bakshi emphasized that equity financing is ideal for startups looking to scale rapidly but without the immediate cash flow. Equity partners offer more than just funds—they bring invaluable networks. expertise and guidance.However, this often means giving up some ownership of your business.
Debt Financing
On the other hand, debt financing was discussed as an option for businesses with predictable cash flows or collateral. While it allows entrepreneurs to retain full ownership, it carries the risk of repayment. which can be a significant challenge if the business faces downturns.
Pro Tip from Dr. Saarthak Bakshi: Consider your startup’s growth trajectory.funding needs.and appetite for ownership dilution before making a decision between debt and equity financing.
What Should Startups Consider?
When deciding between equity or debt financing.here are a few questions to ask yourself.
Does your startup have predictable revenue streams to handle debt repayments?
Are you looking for a strategic partner or simply financial support?
How much ownership are you willing to give up for the sake of growth?
Our Ecosystem Partners
The forum would not have been possible without the support of Global Startups Club, IDFC FIRST Bank, 100x Brands, Gamezon, and Mojo Capital. A special thanks to Dr. Saarthak Bakshi for his valuable insights that truly elevated the discussion.
Audience Engagement: A Highlight of the Event
During the event, the audience asked insightful questions, such as.
- How do you assess when it’s better to opt for debt over equity financing?
- What are some pitfalls startups face when choosing the wrong financing model?
These interactions. along with Dr. Saarthak Bakshi’s guidance provided real-world examples that helped clarify the decision-making process.
Takeaways for Entrepreneurs
Here are three practical tips when deciding between equity and debt financing.
- Assess Your Cash Flow: Startups with steady revenue might lean toward debt financing, whereas those in need of rapid growth may benefit from equity.
- Define Your Long-Term Vision: If scaling quickly is your priority, consider equity. If maintaining control is crucial, debt might be the better choice.