Struggling VC funds to cut bonuses, salary hikes
Mint Mumbai|April 10, 2023
Venture capital funds are resorting to hefty cuts in bonuses and may offer annual salary hikes of no more than 8-10%, a significant drop from the 25% seen at the height of the investment boom that ended a decade of easy money, amid challenging times for startup investments.
- Devina Sengupta & Sneha Shah
Struggling VC funds to cut bonuses, salary hikes

"FY23 was a tough year for VC funds as their existing portfolio had taken a hit. The VC markets shifted to India in 2019-2021 on the back of big deals. That came crashing, and because of last year, bonuses will be slashed by 40-50%. Bonuses are 100% of fixed pay. FY24 is expected to see an uptick on the back of improvement in consumer tech and SaaS-driven investments," said Anshul Lodha, head of recruiting firm Page Executive, India.

According to a March report by Bain & Co. and Indian Venture and Alternate Capital Association (IVCA), venture capital investments in India dropped by a third to $25.7 billion in 2022 from $38.5 billion in the previous year.

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