Seed funding drops 25% in 2024 as VCs retreat
Seed funding in India saw a 25% dip in calendar 2024 as investors exercised caution. In overall funding, however, startups secured $11.3 billion in funding, marking a 6% increase compared to calendar 2023, said Tracxn's annual India Tech Funding report.
ET Year-end Special Reads
Corporate Kalesh: Top family disputes of India Inc in 2024
The world of business lost these eminent people in 2024
Fast, faster, fastest: How 2024 put more speed into your shopping
«Seed-stage funding dropped to $971 million from $1.3 billion in the previous year,» the report said.
Venture capital funds that ET spoke to said lean stock market gains in the second half of 2024 could have a direct impact on seed funding as investable capital saw a downward trend. However, VCs have called 2024 the year of learning and "market correction" that will lead to building of a robust startup ecosystem.
"Pre-IPO and late-stage funding rounds have become increasingly attractive, offering shorter paths to liquidity and stronger returns," said Anirudh A Damani, managing partner of ArthaVenture Fund. «The lion's share of funding has naturally gravitated toward these segments, highlighting a preference for lower-risk investments.»
ArthaVenture Fund has invested in startups like Agnikul, PiggyRide, and Big Bang Food Tech.
