Building AI in India? Privacy is now a valuation issue: Shivaarti Bajaj
Shivaarti Bajaj, a founding managing partner at RSD Bajaj Global Law Firm, argues that Indian AI-first startups must treat privacy as a core asset, not an afterthought, as it directly affects company valuations. She points to the Verizon-Yahoo acquisition, where data breaches led to a $350 million price cut, to illustrate how buyers now factor remediation costs into deals. The talk highlights that while India's IP law is mature, data governance and consent mechanisms remain poorly understood risks that could result in valuation discounts if companies lack data maps or proof of consent.
Key points
- Privacy compliance now affects startup valuations; poor data practices trigger buyer discounts
- Verizon reduced its Yahoo acquisition price by $350M after data breaches
- Indian founders building AI need data maps and documented consent to avoid valuation penalties
- IP protection alone is insufficient; data governance is the emerging compliance frontier
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