Whenever We hear about venture capital, there is only one thing that comes into people’s minds, i.e. They provide Investments to the start-ups in which they see potential to grow in future to gain high returns. But it is only a half picture because Venture capitalists also provide their expertise, advice and opportunities that’s why Every start-up wants to partner with a venture capital firm to take their business to the next level.
Now, Let’s talk about the current market trend in the Indian start-up industry that is seeing a continuous decline in investments from venture capital firms including major market players like Sequoia Capital and SAIF Partners. “The overall Capital raised by the Indian start-ups has drastically come down in the last two months of April and July to $4.15 billion for 218 business deals compared to $10.1 billion between January-March”, by Tracxn. There are a lot of probable causes for this situation and one of them is Interest rates hiked by the US Federal Reserve and another is Investors are in no hurry to commit Capital when there is less competition for deals in India.
The founders of their respective start-ups have already shifted gears and focusing on conserving cash as much as possible even if they have recently closed their funding rounds. Currently, there are a lot of companies aiming for an IPO in the next 18-36 Months timeline. So, they have a great amount of pressure to deal with to cut down costs such as production costs, salary budget for employees and much more.
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