5 Business Lessons from 2024, and the Future of Startups in 2025
Keep it simple. Talk to a friend, not a boardroom!
Wishing you all my friends a Fit, Happy, Abundant 2025! This post might feel a bit techy/nerdy or more intimidating. Write to me if you need to understand more on the investing part, and I will respond with details. After all, our tagline is talk to a friend, not a boardroom!
2024 has been a year of profound shifts—a year defined by transformation. In numerology, the year 2024 is defined by the number 8. The “Number 8” ruled by Saturn signifies balance, power, and rethinking structures. It’s an apt metaphor for a year that has reshaped how I work, create, and view the future. On the tech side, this isn’t just a shift for the decade; it’s a shift that will echo across generations.
Let’s unbox with 5 lessons from 2024 on the business side. In the spirit of Let’s Unbox I’m being vulnerable and transparent here - and I would love to hear your views on this. My views of course, are skewed towards the space I know best - private market investing and startups. Here goes, lets dive right in!
1. A Mature Startup Ecosystem
As someone deeply embedded in the startup ecosystem through LetsVenture, 2024 felt like the year startups hit a turning point. Founders aren’t chasing unicorn status as they did a few years ago. I can also see a bit of the unicorn sheen fade, as many unicorns struggle to maintain their leader board position. Refreshingly, I noted that more pitch decks emphasize clear paths to profitability and sustainable growth.
One particular founder I worked with this year told me, ‘I don’t want to be the next big thing; I want to be the next long-lasting thing.’ That mindset sums up the shift in the startup ecosystem.
2. Decline of FOMO Investing
In an eye-opening conversation with an investor earlier this year, he admitted over coffee (and chai), ‘I used to invest because I was afraid I would be left behind. Now, I invest because I see long-term value.’
This shift in mindset was evident across the board in 2024. That sentiment reflects a recalibration in the ecosystem. Investors are moving away from hype-driven decisions, buzzwords and trends and focusing on thoughtful, conviction-led investing. They are taking the time to build conviction, even if it means walking away from ‘hot’ deals. At LetsVenture, we see our pitch calls run into 1.5 to 2hrs, with lots of questions, discussions and sharing of view points.
As an investor, I have always been wary of trying to label deals ‘hot”. It just felt unfair to other founders. Early stage investing is so much of connecting the dots backwards, of analysing signals after, that a ‘hot’ deal is just a label. Everyone who is an investor knows there are no magic formula, only probability theories.
3. Rise of Equidebt Funding - And Higher Awareness to Equity Distribution
At LetsVenture, we launched Debt as a funding option for founders this year, and it has been a game-changer. The rise of Equidebt—blending equity and debt funding—has empowered founders to grow responsibly while retaining ownership.
I also think this will become the new norm. With more IPO’s, there is more awareness of founder equity holding at scaled up companies, and founders are now more aware of how funding impacts their equity distribution.
Many founders still don’t understand equity distribution and how they should plan their fundraise - this is a topic of discussion for another day!
4. Corporate Governance has become the key to scaling
This year, I’ve seen a growing number of investors asking tougher questions about governance during funding rounds. One founder confided that they revamped their board structure after an investor walked away due to governance concerns. That might sound harsh, but it’s also a sign of how important this issue has become for startups looking to scale responsibly. It’s no longer only about trust.
Investors are showing less patience, and are less forgiving. Founders on the other side, seem to be more cautious in sharing confidential numbers due to the high noise on social media, and fear of scrutiny. There are no easy solutions but build stronger founder-investor relationships.
This trust building between the capital providers and company builders is important.
5. AI: Everywhere and Everything
If there’s one trend that’s exploded into the ecosystem, it’s AI. AI has grown from a tool to a necessity. Startups across industries are using AI to do things we couldn’t have imagined a few years ago. I believe ‘it’s not about replacing people, it is about empowering teams to focus on higher-value work.’ I did write a detailed article on AI and how it is about the change the way we think work.
Summary: India-Specific Trends in 2024 and Predictions for 2025
Trends in India in 2024:
Indian startups focused on profitability and sustainable growth, with Tier 2/3 cities playing a bigger role.
Investors shifted from FOMO to conviction-led decisions, prioritizing value over hype.
Equidebt goes mainstream.
Corporate governance became a key focus amid increased scrutiny.
AI adoption accelerated across sectors, addressing India-specific challenges.
My Predictions for 2025:
Tier 2/3 cities will mature as startup hubs.
India 1 and India 2 will see greying of boundaries across Tier2/3 cities.
AI will be essential for staying competitive.
Profitability will drive funding decisions.
Governance standards will tighten further.
India’s ecosystem is evolving rapidly—2025 will reward startups that scale responsibly focus on long-term value. What are your thoughts?
Here’s wishing all my friends a fulfilling 2025! Have fun.
Team LetsUnBox