The startup ecosystem might experience a comeback in 2024 after surviving the “funding winter” of 2023, but only if businesses prioritize profitability and have strong unit economics.
Madhu Gupta Khandelwal, Managing Partner at EthAum Venture Partners, Singapore; Mikihide Katsumata, President & Chief Operating Officer, Innovation Network Corporation of Japan (INCJ); Abhay Maheshwari, Chief Financial Officer at Jupiter Capital, India; and Nruthya Madappa, Partner at 3one4 Capital, India, talked about how VCs are now refocusing on business fundamentals, which results in more cautious investments, during a conversation at the India Global Innovation Connect (IGIC) 2024.
The growing prevalence of seed and pre-seed funding in the Indian startup ecosystem was also discussed. Investors’ appetite for risk has decreased as a result of the COVID-19 pandemic’s uncertainty, according to Khandelwal and Madappa. Due to their inherent lower risk, smaller funding rounds are becoming more and more appealing. In contrast to Series A investments, this trend toward early-stage investments is anticipated to continue until 2024, despite some noteworthy deals in recent years.
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