The New VC Playbook: How Startup Capital Is Getting an Upgrade
Remember when Starbucks changed how we ordered coffee? No longer limited to “coffee, tea, or lassi,” suddenly you could walk in and order a half-caff, oat milk, sugar-free vanilla latte, extra hot, no foam. It wasn’t just caffeine - it was customisation.
Venture capital is going through a similar shift. Traditional VCs, once limited to rigid fund structures and stage-specific investments, are evolving into financial baristas - crafting bespoke capital solutions for founders, not just serving what’s on the pre-set menu.
The Old Model: A Pre-Set Menu for All
The classic VC model was like your neighbourhood chai stall - simple, dependable, and standardised. VCs raised money from limited partners (LPs), invested in early-stage startups, and had to return the capital within 8-10 years, typically via an acquisition or IPO.
It worked when startups scaled quickly and exits were predictable. But in today's environment? That approach can feel like serving everyone the same kadak chai, even when some founders need a calm chamomile or a triple shot espresso to power through the day.
Enter the Full-Stack VC: The Barista Who Knows Your Order
Now, major firms like Lightspeed and Andreessen Horowitz are becoming Registered Investment Advisors (RIAs) - unlocking a much broader menu. Think of it as upgrading from a basic tea/coffee stall to a premium cafe with every possible ingredient and brewing method.
As RIAs, these firms can:
Mix and match asset classes - from early-stage startups to public equities and secondaries
Stay invested longer - no ticking clock forcing exits
Build tailored vehicles - based on what the founder and opportunity actually need
Back founders across cycles - from seed to IPO and beyond
It’s about flexibility, optionality, and staying relevant to the needs of today’s innovation cycles.
Brewing Bigger: From VC to Platform
Take General Catalyst - they’ve gone so far down this path they’ve stopped calling themselves a VC firm. Not only did they invest in Policybazaar, they’ve now acquired an entire hospital system in the US.
Or look at Lightspeed, which didn't just lead early-stage rounds in India but is now investing in IPO-bound companies and public entities - powered by their RIA structure.
It’s like your favourite coffee brand not just brewing drinks - but growing beans, building machines, and training baristas. A full-stack platform, not just a fund.
What This Means for Indian Innovation
India’s startup ecosystem is no longer a one-size-fits-all landscape. Founders are building in climate tech, EV infra, agri-tech, deep-tech - spaces that don’t conform to the old “unicorn in 5 years” playbook.
With this full-stack approach:
A ₹75L micro-roast for a tier-2 logistics startup isn't dismissed as "too small"
A 15-year slow-brewed deeptech venture isn't rejected as "too long"
A second-time founder's fintech blend isn't considered "too complex"
The same barista can guide your coffee journey from your first home brew in Koramangala to franchising nationwide
But here’s the thing - while how capital is being deployed is evolving, we believe what you do after deployment matters just as much.
The Other Shift: From Capital to Commitment
At Equanimity, we’ve built our own playbook to deepen how we work with our companies and LPs - one that complements the structural changes taking place in VC.
We call it the SPEED framework:
Selection criteria: Laser-focused on innovation, execution, timing, and capital efficiency
People & Process: Rigorous diligence and founder engagement, not just deal-making
ESG: Governance-first, with sustainability integrated into decision-making
Engagement: Ongoing operational support, leadership coaching, and global network access
Design: Portfolio construction that doubles down on winners and exits when needed
While some firms are reinventing their capital structure, we’re focused on reimagining our relationship with every company we back. It’s our version of going full-stack - not just with money, but with value, alignment, and purpose - a VC plus plus approach.
Why This Fresh Brew Matters Now
India’s startup story is entering a new era. Founders are savvier. LPs are asking sharper questions. And the best opportunities are often the ones that take time, grit, and guidance to mature.
The full-stack model is a welcome change. But it’s only half the story.
The other half? How you show up after the cheque is written.
That’s where frameworks like SPEED turn capital into real impact.
VCs are no longer just early believers - they’re becoming long-term collaborators.
And that changes the game entirely.
- Nankee Hari, Equanimity Investments