VC stakes at risk, startups look at rejigging biz models

For venture capital (VC) investors who have infused several million dollars into gaming startups, the sweeping ban on online real-money gaming (RMG) has put their investments at risk. Some investments could be written off and valuation markdowns look certain. It unsettles domestic and international investors to have the policy changed on the fly, added Ranjeet Shetye, venture partner at YourNest. Such a drastic shift signals to investors that the Govt can arbitrarily dismantle a thriving sector, creating significant regulatory risk, said Probir Roy Chowdhury, partner at JSA Advocates & Solicitors. Read Article