SEASON OF CHANGE
Business Today India|January 21, 2024
VCs, armed with record dry powder in a buyer's market, are sharpening the focus on unit economics as green shoots in funding activity emerge. Is it signalling the beginning of the end for the funding winter?
Binu Paul
SEASON OF CHANGE

SILICON VALLEY-BASED venture capital firm Tribe Capital said in a recent report that the total market capitalisation of VC-backed Indian public companies had crossed $50 billion in 2023, from less than $5 billion in 2020. Yet, the share of global VC investments into India had dropped to 3.3 per cent in 2023 from 5.5 per cent in 2019. This conundrum encapsulates the enduring puzzle of India’s start-up opportunity—a canvas woven with challenges and prospects.

While concerns about the lack of global investment flowing into India remain, the current sombre atmosphere is more a result of global macro events. Following a stellar year with $36 billion being poured into start-ups and the birth of 44 unicorns in 2021, a combination of global macro events—including the conflict in Ukraine, rising inflation, a spike in interest rates, and the lacklustre performance of tech stocks in public markets—has made investors jittery. As the mood shifts from exuberance to austerity, VC investors have directed their attention towards companies that exhibit disciplined control over cash burn, prioritise cash conservation and engage in judicious hiring practices. There is a clear preference for backing profitable or profit-focussed start-ups over those which aggressively chase growth. Discussions on corporate governance and internal controls have also become integral components of deal negotiations and due diligence processes.

Bu hikaye Business Today India dergisinin January 21, 2024 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Business Today India dergisinin January 21, 2024 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

BUSINESS TODAY INDIA DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
The EV Craze
Business Today India

The EV Craze

The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly

time-read
5 dak  |
November 10, 2024
The Storage Boom
Business Today India

The Storage Boom

Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?

time-read
8 dak  |
November 10, 2024
India Beckons
Business Today India

India Beckons

Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before

time-read
4 dak  |
November 10, 2024
The Pearls of The Sea
Business Today India

The Pearls of The Sea

Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it

time-read
4 dak  |
November 10, 2024
66.Brand persona should define the core"
Business Today India

66.Brand persona should define the core"

I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.

time-read
1 min  |
November 10, 2024
Unwind in Style
Business Today India

Unwind in Style

Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury

time-read
3 dak  |
November 10, 2024
A Lifelong Affair with Inspiration
Business Today India

A Lifelong Affair with Inspiration

In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art

time-read
3 dak  |
November 10, 2024
Make it Bubbly
Business Today India

Make it Bubbly

Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles

time-read
4 dak  |
November 10, 2024
Palatial Splendour
Business Today India

Palatial Splendour

Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers

time-read
7 dak  |
November 10, 2024
Of Beaches and Cream
Business Today India

Of Beaches and Cream

GianChand Single Malt Whisky

time-read
1 min  |
November 10, 2024