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Indian VC ecosystem defies global trends and drives economic transformation While VC is down 9% globally, India reported an annualized 40% growth ($2.52B across 312 deals in Q1 2025), the backbone of innovation power in the country. Now the splittings: • Capital Inflows: Betting On The Rise Of India $350B odd in alternative capital from pensions, SWFs, and family offices. • Leaders in sectors: 60% of funds in consumer tech/SaaS/fintech; climate-and-spacetech deals rose 41-56% • Global pivot: China VC halved to $6B; India, by default, has become the Asian startup hub. Resilience and maturity • 6.2% GDP growth forecast for 2025; the fastest among the major economies • 100+ Unicorns, 159K+ startups (account for 5-7% of GDP), aiming to hit $1 trillion by 2030 • A bit of post-2008 feeling: Startups like Eon Space Labs (spacetech) and Peppermint Robotics (AI) trying to tackle the big problems Flywheel Effect: Capital → Innovation → Exits • $6.8B exits (2024): IPOs (Lenskart) & acquisitions • Vertical integration: Acquiring hospital chains for AI healthcare experimentation (General Catalyst) • Global R&D hub: Tech talent working cost-efficiently for markets in the West Sectoral Rebalancing Digitisation channelled 25-80 per cent growth into funds from traditional sectors (banking, health and manufacturing) • Climate tech: $1.2B for EV and green H2 startups in Q1 2025 • Govt aid: ₹580Cr to 10K+ early ventures through Startup India/SAMRIDH Risks and Opportunities • Regulatory changes: SEBI’s ESG norms, global trade turmoil • AI-native models: Thrive Capital’s $1B fund to reboot legacy firms • AI-native models. A $1 billion fund to revive legacy firms by Thrive Capital • Untapped opportunity: India VC per capita stands at 19 as compared to 325 for the U.S. Why It Matters India's VC boom, rather than merely financing startups, is transforming the entire economy: • Consumer shifts: Hyperlocal (10-minute delivery at Zepto) • Industrial AI: Smart supply chains/manufacturing • Global exports: Homegrown solutions to mature markets The Road Ahead Like late 2008 in Silicon Valley (time of Uber/Airbnb), 2025 in India could become an inflection point for the next 10 years. To build/grow founders/investors: → Work toward sustainable forms → Leverage cost-tech edge → Align with global demand