Does Angel Funding Look Promising For Startups In 2021 Amid Ongoing Pandemic?

Ever since the world has been stormed by the coronavirus outbreak, economies across the globe have been in turmoil, with massive layoffs, shutting down of the businesses and cost-cutting measures have come into the light.

- Aditya Rangroo

As the pandemic hit the economies, the investment ecosystem in India faced several challenges coupled with uncertainties about the future. Many of the businesses across sectors suffered major economic jolt since April 2020 as the result of the frequent lockdowns. Among several businesses, startups and even early-stage startups received the major blow initially, as most of these firms are mainly driven by the funding by private equity/venture capitalists. The funding accelerates the growth for the startups, which in turn, translates into revenue for the investors. Though the pandemic impacted the economic cycle, however, surprisingly several startups have registered growth during these times. On the other hand, some PE/VC firms had been perhaps cynical about their investment planning for the year 2021 in the backdrop of the ongoing COVID-19 though this doesn’t seem to be the case anymore. Similarly, angel funds also faced some roadblocks during the beginning of the pandemic; however, they seem to have regained confidence in their investments. In the meantime, many analysts have voiced optimism about the growth prospects of the Indian startup ecosystem in 2021.

COVID‘ TEMPORARILY’ INTERRUPTS INVESTORS’ CONFIDENCE