India, Aug. 30 -- The Union government's ban on real money gaming has shaken the digital economy. Billions of dollars in value have evaporated, layoffs loom, and investor sentiment has soured. But behind these visible consequences lie deeper lessons for founders about the uneasy but unavoidable relationship between startups and the State. First, national interest always comes first. When governments perceive risks to social well-being or public order, no promise of growth, jobs, or investment can outweigh what they define as the public good. Second, no one is too big to be shut down. Neither billion-dollar valuations nor hundred-million user bases guarantee immunity. If anything, scale increases regulatory scrutiny rather than shielding against it. Third, data outlasts narrative. A compelling pitch may work for a while, but once evidence of harm surfaces - addiction numbers, debt defaults, family distress - it is data that regulators heed. Fourth, self-regulation must be real. Bare-bones industry guidelines are never enough. Unless self-regulation standards are tough, enforced, and transparent, bans become the default response. Fifth, unity is non-negotiable. The gaming sector paid heavily for its fragmentation. Fantasy sports, card games, and e-gaming advocated separately, often seeing policy as a competitive weapon. By the time common platforms and codes were attempted, time had already run out. Regulators expect a united industry voice, not competing factions. Sixth, critics aren't always wrong. Policy professionals may sound like alarmists and doomsayers in good times, but often they highlight risks long before a crisis hits. Critics argue the government could have pre-empted this mess with clearer regulation earlier. But harmful externalities often become obvious only at scale, forcing late but sweeping interventions. For founders and investors, such abrupt action is devastating and years of capital and effort seem wasted. As someone who is an alum of a venture capital firm and a founder, I know the toll is more than financial; it is personal and emotional. Yet even in this loss lies a lesson for the entire startup ecosystem. Innovation and regulation must not be seen as adversaries. They must evolve together. For that to happen, early and consistent dialogue is crucial, so policymakers aren't blindsided, and startups aren't ambushed. Founders must think like policymakers, anticipating not just profit and scale but also social outcomes, be it on consumer well-being, financial health, or mental health. Robust self-regulation, transparent monetization, grievance redressal, and real accountability need to be treated as core business practices, not afterthoughts. If these lessons are absorbed, India's next wave of innovators can avoid repeating this painful cycle. A balanced compact between policymakers and founders can create both strong startups and strong consumer protections. It is the only way to ensure growth is resilient, responsible, and sustainable. It is also heartening to witness the resilience of India's startup ecosystem. Even in the wake of sudden bans and upheavals, gaming founders are already announcing fresh models and new plans. This instinct to adapt, rebuild and pursue opportunity reflects the vibrancy and grit of India's entrepreneurial spirit. Setbacks may be sharp, but they are rarely final. It's this never-give-up attitude that ensures India's founders will script comebacks bigger than the setbacks they face....