The panellists say that entrepreneurs are regaining confidence, and early-stage funding is more available. “The Venture Capitalists (VCs) are ready to invest, provided the idea that is presented to them is of value,” Amit Somani, Managing Partner, Prime Ventures, said while he spoke at the event, “The talent pool is increasing, and it is something to be glad about.”
India’s Venture Capital (VC) ecosystem after displaying exemplary resilience through a finding winter—wherein the funding plummeted by a substantial 65%–to an upward trajectory now with a 45% increase in H1 of 2024 from the H2 of 2o23. There is palpable optimism and there is caution.
That is how the panellists at the ET Soonicorns Summit also looked at the whole scenario.
Prayank Swaroop, Partner at Accel, felt that the Indian startup ecosystem is in a very good place. “The consumption power of the Indian economy is growing, and it looks like large profitable businesses can be built from India,” he said.
The panellists spoke at length about driving factors for resurgence, investor sentiment and funding, talent and entrepreneurial trends, focus on exits and profitability, as well as the long-term outlook of the Indian VC ecosystem.
They came up with the following points:
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- IPOs have provided liquidity
- There is a reduced risk aversion in entrepreneurship
- Entrepreneurs have realised early-stage funding is accessible
- Indian stock markets doing well
- Inflation is under control, and the economy remains strong
- Increase in domestic, and global capital flow
- Greater global recognition of Indian startups
- Improved quality of entrepreneurial and VC talent
- Exits are more prominent, with IPOs providing sustainable exit options.
Ritesh Banglani, Partner, of Stellaris Venture Partners, spoke about how the overall scenario of the Indian economy has had a rub-off effect on the startup ecosystem.
“The Indian economy has not tanked, the stock markets are doing well, and we can say India is in a happy place economically. This has had a positive rub-off effect on the startup ecosystem, where the entrepreneurs have realised that the sky is not falling,” he said.
He added that there was no frenzy in the ecosystem, and the ecosystem is not in a frozen place – calling it a “happy median place” for the startup landscape to be in.
Here is what the other speakers had to say:
- Kanika Mayar, Partner, Vertex Ventures
“We are in our fifth fund, and India’s allocation is increasing significantly. Global investors are becoming more comfortable with the potential of Indian startups.”
- Anand Datta, Partner, Nexus Venture Partners
“The best part is, India is a digital-first economy and there are not many parallels across the world. We are the only large startup ecosystem that is growing rapidly.”
- Prayank Swaroop, Partner at Accel
“I think these trio of things funding pressure, public market corrections, and investor shift led to healthier balance sheets and more sustainable business growth.”
The ET Soonicorns Summit continues, and we will be providing you with latest updates in real time. There is still time to register and listen to profound insights on the Indian startup ecosystem. Hurry up!