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Funding secured by startups hit a seven-year-low in 2023, backsliding to 2017 levels
On a year-on-year basis, both funding amount and deal count witnessed a substantial decline, plummeting by 60% and 40% YoY, respectively, in 2023
Despite the gloom, investors continued to foster their faith and confidence in the world’s third-largest startup ecosystem
The capital drought continued to create considerable headwinds for the Indian startup ecosystem in 2023 as well, putting a dampener on funding raised by new-age tech companies and slowing down the launch of new ventures.
Funding secured by startups hit a seven-year-low in 2023, backsliding to 2017 levels. As per Inc42 data, Indian startups raised a mere $10 Bn across 897 deals last year, down from the $13 Bn raised across 996 deals in 2017. As evitable, the YoY investor participation in startup funding deals also witnessed a major decline.
However, a majority of entrepreneurs who participated in Inc42’s founders’ survey 2023 opined that funding troubles could start to taper off to some extent in the second half of 2024. And this optimism is not without a reason. Despite multiple challenges, India maintained its position as the third-largest global tech startup ecosystem, boasting more than 68,000 startups and 9,700-plus investors.
Not just this, Indian startups have created more than 10 Lakh jobs in the past decade. And it is this sense of optimism that investors are banking on to capture the next big thing in the Indian startup ecosystem.
Also, what could come in handy is the $23 Bn worth of funds that were raised between 2021 and 2023. Interestingly, a significant portion of these funds are still waiting to be deployed as more than one-third of investors failed to allocate even 50% of their startup fund corpus.
While this is the future outlook, what is important is to look at the investors that navigated the adverse market conditions last year to announce a substantial number of deals. These investors stood out for their unwavering faith in the Indian startup ecosystem and continued to instil a sense of confidence among the stakeholders.
With that said, we bring you the list of the top startup investors of 2023
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