In this context, Bhaskar questions: "Perhaps Ramalinga Raju did not believe in Satyam?" He relates this to Indian entrepreneurs in general, as he expresses the opinion that by and large, they still don't sufficiently value intangible intellectual capital, which unlike instantly acquired (and tangible) real estate is difficult to maintain for a long period of time. Unlike buildings that last 50 to 100 years with minimum maintenance, IP (intellectual property) has to be carefully nurtured to stay ahead of the race, over generations.

In truth, with business, there are no ‘get rich quick' avenues nor are there any short-cuts, and as Natarajan highlights, "Start-ups should not misconstrue risk-taking with short-cuts."

Narayanan adds to this, "If you are really convinced that what you are doing is valuable, then do not worry about growing quick. It might take some time to climb the hill, but do realise a grave mistake will cause you to slide down fast. So, be at it patiently. At the end of the day, if you are convinced that you have a value proposition and you work on it constantly, then you will reach your goal."

Along the way, Narayanan suggests that any business, start-up or otherwise, should take extra precautions to safeguard its investors. And there is perhaps nothing more that investors like than transparency. As Natarajan explains, this entails sharing the bad news along with the good news so that investors do not for a moment suspect that something is being hidden.

return on investment.

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Is Satyam doomed?

Undoubtedly, the magnitude and audacity of the fraud was huge.
Simultaneously, the Indian legal process is notoriously glacial and fraught with politicking. Chandras feels that the government needs to move swiftly and firmly in the case of Satyam and in similar other situations, in order to infuse confidence in current and potential customers and investors. He has no doubt about the skills and abilities of various wings of the government - it is just its political will that is questionable.

Additionally, Chandras believes the new management and board of directors must also move quickly and aggressively to restore customer and investor confidence, and thus bring normalcy to the situation. Satyam is a leader in IT, has solid talent and subject area expertise (in, SAP, for instance), and an equally solid market presence. What is required is a public relations offensive that is immediate and direct, along with the sustained contact of senior Satyam managers and executives with customers. This should be supported by a well-defined and selective publicity campaign.

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The impact of the Satyam fiasco
For instance, we may now cry ourselves hoarse claiming that the Satyam episode was but a one off occurrence in the Indian IT industry, but the damage has been done. "The debacle has robbed Indian IT of some of its sheen, especially in the US. Besides planting seeds of doubt in the minds of otherwise understanding and cooperative customers, this has also provided fodder to opponents of off-shoring. At the same time ...the Satyam episode...will serve...to warn people about the dangers lurking in the deep seas of corporate governance," observes Chandras.

Sethi adds to this, saying that the Satyam disaster has caused enormous collateral damage across the Indian market. It has raised apprehensions about how the world would view both the IT services sector and the Indian corporate sector's standards of governance.

While it still remains to be seen whether foreign investors tar other IT and tech related ventures with the Satyam brush, the examples of Tata Consulting, Infosys, and Wipro, that have had better success at achieving transparency and investor trust are in India's favour. Additionally, as Chandras points out, "The seemingly small action, of these IT majors and Satyam's competitors dealing with the situation wisely and without any blatant exhibition of opportunism, has also gone a long way towards lending credence to the maturity of Indian IT vendors."

Primary determinants of investor faith in start-ups
Unlike these IT giants, tech start-ups don't operate in public markets. Nevertheless, if they are at a point of exponential growth, Sethi insists that, "their businesses must be transparent to the shareholders and they must incorporate best practices to avoid a similar fate. Simply put, cooking the books won't do."

Earlier stage tech ventures and start-ups, however, looking to raise investment capital from the VC (venture capitalist) and PE (private equity) community should concentrate on proving their solid competitive advantage and the worthiness of their product or service, as their VC is bound to closely monitor their performance. After all, as Sethi points out, the venture community is not looking at Satyam as an example of a failed start-up, because it is not a failed start-up.

At the end of the day, Chandras concludes that ‘greedy corporate chieftains' are always around, but the primary determinants of investor faith in start-ups will continue to be economic: the safety of capital invested and the potential