I regularly see early-stage tech founders fixated entirely on their product roadmaps, user acquisition costs, and server architecture. When a term sheet finally arrives from an overseas angel syndicate or a cross-border incubator, the immediate instinct is to sign it, wire the funds, and get back to writing code.

But for Indian tech startups, the geographical origin of that money dictates far more than just your runway. It dictates your legal survival.

Since the regulatory landscape shifted drastically in 2020, foreign direct investment (FDI) into Indian technology companies is no longer just a financial transaction. It is a highly scrutinized matter of national security, data sovereignty, and corporate compliance.…