VC Funding For Indian Startups Drops To $26 Billion In 2022: Report As per the survey, this economic downturn reportedly nudged investors to go slow on deployment of capital into new age firms
By Teena Jose
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According to a joint study published by Bain and Indian Venture and Alternate Capital Association (IVCA), stated that venture capital (VC) funding for Indian startups declined to $25.7 billion in 2022 from $38.5 billion in 2021, according to a TOI report.
As per the survey, this economic downturn reportedly nudged investors to go slow on deployment of capital into new age firms. High cashburn consumer technology businesses bore the bulk of the burden as funding for this segment saw a 55% year-on-year decline to less than $10 billion in 2022, as per the report.
The analysts in the new report quoted as saying, "A significant drop in $100 million+mega rounds was a key factor in deal size compression, with global investors exercising caution on large ticket-size deals."
The report further noted that many unicorn startups like Byju's, Unacademy, ShareChat, which saw their valuations soar amid the Covid-led funding high, laid off employees and undertook cost-saving measures as they struggled to raise more capital to fund their burn.
The news report further added that as per Bain's estimates as many as 20,000 startup employees may have lost the job last year.
