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With record dry powder, VCs face shortage of quality late-stage companies; see potential revival in 2024

Business TodayBusiness Today Ā· 10m
With record dry powder, VCs face shortage of quality late-stage companies; see potential revival in 2024

Indian venture capitalists are currently facing a scarcity of quality companies in the later stages, which is posing a challenge for them to deploy their capital. However, there are signs of a potential revival in funding activity as founders shift their focus from growth-at-all-cost to profitability, coupled with corrected valuations. VC funding in tech start-ups plummeted by 72% in 2023, primarily due to a significant drop in late-stage funding. Despite the shortage of opportunities, investors believe that quality companies will soon emerge, presenting favorable investment opportunities. The year 2024 is expected to witness a cautious revival in funding.

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