VentureESG’s 2025 white paper argues that strong corporate governance is a growth driver for startups and VC, not just a compliance task. Weak governance has cost firms billions through fraud, mismanagement, and reputational damage. India’s startup boom exposed systemic gaps, with scandals at Byju, BharatPe, Mojocare, and GoMechanic sparking investor caution. Interviews with VCs and LPs reveal progress: earlier CFO hires, stricter audits, and more oversight, though challenges remain with board effectiveness, internal controls, and auditor reliability. The paper calls governance a strategic asset that enhances resilience, trust, and long-term value creation.

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