“Funding winter” is a term used when money coming into new businesses slows down. This makes it harder for these businesses to increase their worth quickly. Basically, it becomes tough for people who start businesses to get funds and high values for their companies.
As per the latest figures, Indian startups have faced a 77% plunge in funding compared to last year. From the onset of 2023 until July, venture capital and private equity funding summed up to $4.4 billion, a steep descent from $19.3 billion observed in the corresponding period of 2022.
Moreover, the total count of successful funding deals for Indian startups in the first seven months of 2023 has come down to 344, a considerable drop from 821 deals secured a year ago. In July 2023, investments reached a mere $523 million against $2.6 billion in the same period last year, and funding rounds decreased from 77 to 42.
Unfortunately, these adverse conditions have led to job losses, with over 17,000 employees from Indian startups being laid off in the first half of 2023.
In these testing times, it’s essential to maintain a long-term perspective, remembering that periods of slowdown can be followed by resurgence.
