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Indian startups stare at two years of funding winter even as investors sit on a $9 billion dry powder

Money Control · 1y

India-focused private equity and venture capital firms have raised nearly $9 billion in the past year, compared to $5 billion in the previous year, according to data from Venture Intelligence. However, the check sizes for investments seem to have decreased, indicating caution among investors in the face of macroeconomic challenges. Investors are likely to exercise more care in their investment decisions due to uncertainties in the macroeconomic environment, such as inflation, liquidity issues, and global supply chain disruptions. While a full rebound in funding may take another 12-18 months, early-stage deals are expected to recover faster, and niche and emerging sectors are likely to attract more attention from investors.