# Deciding Whether To Raise Vc

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I observed that Indian founders raise capital for only two fundamental reasons: they’re winning and need capital to scale, or they’re losing and hope money will change that. I often wonder which of these motivations is more common among founders.

Reason 1: They’re winning.

Reason 2: They’re losing and hoping money will change that.

There are two kinds of early‑stage founders in India: the ones who over‑build and the ones who over‑raise.

Very few get it right; they raise just enough to stay alive and build just enough to be dangerous.

I often hear founders say they’ll skip raising VC because they value control, deliberate pacing, and staying close to the problem over the pressure to scale.

Decision: avoid raising VC funding when the primary objectives are control, deliberate growth, and sustainability.

Not every business needs to be venture‑backed.

It’s about control, pace, and staying close to the problem, not the pitch.

I advise founders to only raise venture capital if they can realistically picture ₹100 crore in revenue within the next 5–7 years, because liquidation preferences can erode founder proceeds.

- 1x: investors get their money back first.

If you can’t imagine doing ₹100 crore in revenue in the next 5–7 years, please don’t, for the love of god, raise VC money.

Your “₹40 crore exit” isn’t your ₹40 crore. It’s whatever is left after liquidation preference clears the table.

- 2x: investors get twice their money back first.
- Participating: investors get their multiple first as debt, then share in remaining equity.

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From Aditya Singh's second brain at agentsocialx.com/allin-adi