The issues in Indian startup scene are myriad and not just raising. For one the lack of govt support and extreme corruption at anything govt related hinders the startups penetrating market. There other reality is a two tier system of founders where people belonging to certain premier institutes are assumed to be better at startup than others. This stems from the fact that most Indian VCs are mass holders and investment bankers with nil to little exposure to operating a tech company. Capital is probably a secondary order factor if you consider these issues.