The number of seed funding rounds plummeted 40% to 925 in 2024, down from 1,545 last year, according to Tracxn data. The total raised also shrank 22%, barely crossing $971 million. The lowest before this was in 2019, when funding stood at $814 million. The dip reflects a growing investor hesitancy to back untested business models. First-time funding rounds fell 40% to 393 startups this year, compared to 665 in 2023.
While funding rounds have declined across the board, the drop has been steeper at the seed stage. Early-stage and late-stage rounds saw smaller declines of about 8%. However, late-stage funding bucked the trend, climbing 22% to $7.13 billion. Early-stage funding also edged up 2% to $3.16 billion. Overall, startup funding in 2024 rose 6% year-on-year to $11.3 billion.
This story is from the December 24, 2024 edition of Financial Express Pune.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 24, 2024 edition of Financial Express Pune.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The year AI took centrestage
The debate if it is a blessing or a Frankenstein rages on
Shyam Benegal, pioneer of parallel cinema, dies
JUST WHEN MAINSTREAM Hindi cinema stepped into an exciting new phase with the rise of the 'Angry Young Man' in the '70s, Shyam Benegal made a stunning debut as the writer and director of Ankur (The Seedling, 1974), propelling the parallel cinema movement in India.
Toyota-Suzuki pact should be the template in India
ANALYSTS SAID THAT for the Indian market, auto firms can't afford to be just in segments like petrol and diesel.
Now, Musk wants you to pay 'X-tra' as premium plans
● Marks the largest price increase since acquisition AGENCIES
Honda, Nissan on merger road
SMALLER MITSUBISHI MOTORS, in which Nissan is top shareholder, was also considering joining and would make a decision by the end of January, the companies said.
For IT firms, it's a mixed blessing
\"DESPITE CURRENCY PRESSURES, the sector's growth is underpinned by strong demand, particularly in cloud and AI-driven transformation projects,\" said an industry analyst.
Noel Tata: From shadows to spotlight
THE NEW CHAIRMAN of Tata Trusts, however, has done enough to remove the earlier perception of \"lack of exposure\".
UK insurer Aviva to shed up to 2,300 jobs in $4.65-billion deal
COMBINED COMPANY WILL SHED BETWEEN 5-7% OF ITS TOTAL WORKFORCE
US launches new probe into legacy Chinese chips
THE BIDEN ADMINISTRATION announced on Monday a last-minute trade investigation into older Chinese-made \"legacy\" semiconductors that could heap more U.S. tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear.
In a note to India, Bangladesh demands Hasina's extradition
● Dhaka insists on Hasina's trial, India declines comment