Since 2022, the Indian startup ecosystem has experienced a significant correction from its 2021 peak. In 2023, total funding reached $10 Bn+, representing a 60% drop from 2022 and a sharp 76% fall from the peak in 2021. Notably, this is a seven-year decline in funding for the Indian startup ecosystem.
Mirroring the funding trends, investor participation in 2023 also saw a decline from the previous year. Over 1,500 startup investors were involved this year, a 37% decrease from the more than 2,400 recorded in 2022.
The Pulse Of Tech: Inc42’s Annual Investor & Founders Survey
Trends & Predictions For 2024
Summary
Investor sentiment in the startup ecosystem is increasingly favouring seed stage investments, a shift from the earlier focus on growth and early stages. According to Inc42’s annual survey, gathering insights from over 75 Indian startup investors, a significant 78% of them favoured seed stage investments in 2023. This contrasts with just 19% and 3% preferring growth and late-stage investments, respectively.
Despite the fact that over 38% investors failed to deploy even the 50% of the allocated startup investment targets for FY24, the future outlook remains optimistic. A considerable 95% of investors predict favorable IPO conditions for startups in 2024. Furthermore, over half (55%) anticipate a positive environment for exits, underscoring renewed confidence in the sector's potential for growth and liquidity. This optimism signals encouraging opportunities for Indian startups in funding and exit strategies as the new year approaches.
Stay on top - Get the daily news from Inc42 in your inbox
