CFO Services
CFO Services
Not all capital is created equal, and not every startup should raise from the same kind of investor.
Over the last decade, India’s startup ecosystem has matured significantly. Founders today are no longer just asking how much capital they can raise, but what kind of capital best supports the business they are building.
From our vantage point at Entrust CFO Services, working closely with founders across stages, one pattern is becoming increasingly clear: family office capital can be a powerful fit, but only in the right situations.
Family offices are not for every startup
Family offices are often misunderstood as simply “long-term VCs.” In reality, their investment philosophy, expectations, and engagement style are very different.
Founders should seriously consider family office capital when the business has certain characteristics.
Family offices are typically more comfortable backing businesses that demonstrate discipline early on: strong margins, thoughtful growth, and clear visibility into unit economics.
Unlike hyper-growth-at-all-costs models, these businesses prioritise sustainability. From a CFO standpoint, this alignment reduces pressure to burn capital aggressively and allows founders to build with financial clarity.
Certain sectors like manufacturing, climate tech, healthcare services, deep tech and education, do not lend themselves to rapid exits or blitz scaling.
Family offices, often investing their own generational capital, are better suited to such timelines. They understand that value creation can take years, not quarters.
As startups grow, the absence of governance becomes a real risk – poor financial controls, unclear decision rights, and weak reporting structures.
Family offices tend to value:
For founders who want to institutionalise early and avoid painful clean-ups later, this mindset can be a significant advantage.
Many family offices bring deep operating experience from running large businesses to navigating multiple economic cycles.
For founders, this can translate into practical guidance on:
From a CFO lens, this often leads to better decision-making and fewer surprises.
Traditional VC funds operate on fixed timelines and defined exit horizons. Family offices, on the other hand, can stay invested well beyond the standard cycle, sometimes through multiple phases of growth.
For founders building enduring businesses, this continuity can be invaluable.
What about early-stage startups?
For early-stage companies, a balanced mix often works best:
As companies move into the growth stage with predictable revenues and large addressable markets, family offices often emerge as more aligned partners.
The CFO takeaway
Choosing the right investor is not just a strategic decision, it is a financial architecture decision.
At Entrust CFO Services, we work closely with founders to:
Because the right capital, paired with the right financial discipline, doesn’t just fuel growth, it shapes the kind of company you become.
When an investor exits an Indian company by selling equity shares, the transaction attracts capital gains tax under the Income Tax Act, 1961. The law treats any right in relation to an Indian company as a capital asset. As a result, any surplus earned on the sale of equity shares is taxed as capital gains. […]
Not all capital is created equal, and not every startup should raise from the same kind of investor. Over the last decade, India’s startup ecosystem has matured significantly. Founders today are no longer just asking how much capital they can raise, but what kind of capital best supports the business they are building. From our […]
In today’s fast-paced entrepreneurial ecosystem, every founder begins their journey with one clear goal, which is scale. And while most businesses start with a reliable chartered accountant or a traditional CA firm, there comes a stage where the needs of the organisation grow beyond routine accounting, compliance, and filings. At Entrust, we’ve had the privilege of working closely […]
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