Infosys cofounder Narayana Murthy says VCs responsible for current growth culture in startups

Speaking at the Nasscom Technology and Leadership Form, Murthy said this had become like a Ponzi scheme, where the risk kept getting transferred to the next set of investors. “It’s not the younger people, but I hold the older people – the VCs responsible for this,” he said.

Murthy also said that building the right culture was essential in an organisation, and that leadership was the best tool to establish the organisational culture.

“They have to accept delayed gratification, and the realisation that sacrifice in the short- and medium-term will lead to much bigger returns in the long term,” he said.

Respect, he said, was the most important ingredient for an individual, community and nation.

If clients respect the work you are doing, it will result in repeat business for the firm. Similarly, if employees respect the organisation, they become brand ambassadors for the company and are also likely to stay on for a longer time.

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For startup founders unsure of how long to pursue an idea, and how to know when to give up on it, Murthy said that it was time to give up only when you find you face a structural weakness in the idea – as far as the market is concerned – which you have no way of overcoming. This could be related to a process or a technology. Finally, he said competence and value systems were the two core characteristics for any professional.

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