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Funding Winter shuts over 35,000 startups in 2023. Will VCs fund tech ventures?

Livemint · 11m

The Indian startup ecosystem faced numerous challenges in 2023, resulting in the closure of over 35,000 ventures, as per a report by Bain & Company and the Indian Venture and Alternate Capital Association (IVCA). Factors such as inflation, higher interest rates, softening global consumption, and geopolitical uncertainties contributed to a decline in funding. Deal volume and average deal size both decreased, with a shift towards more seed deals. Tech startups faced a decline, while traditional sectors like BFSI, consumer brands, and healthcare received more attention. Despite the challenges, India remained the second-largest destination for venture capital and growth funding in the Asia Pacific region.