Startups Outlook 2024: Potential rebound expected next year, funding pace to remain slow
2023 in review: For Indian tech startups, an unrelenting funding winter However, experts believe that despite these challenges, the Indian startup ecosystem remains resilient, supported by government initiatives and a renewed focus on sustainable, long-term success. The government has introduced several initiatives to support startups including Fund of Funds for Startups, Startup India Seed Fund Scheme, and Credit Guarantee Scheme for Startups.
“We remain optimistic about the future. The combination of favorable government policies, India's robust and expanding economy, and ongoing infrastructure developments positions the startup landscape for a brighter and more resilient future," Aniruddha Sen, Co-founder, Kenko Health told Livemint.
Sen further added, “The unwavering commitment of governments to support startups through regulatory reforms, tax incentives, and funding programs is expected to create an environment conducive to entrepreneurial growth. Such supportive measures can significantly impact the startup funding landscape.
The relentless pursuit of technological advancements and innovation remains a driving force. Startups at the forefront of transformative technologies, such as AI, biotech, and clean energy, are likely to attract substantial funding due to their potential to reshape industries." The funding winter in India at present reflects a challenging landscape for startups, with Venture Capital (VC) funding hitting a six-year low in November.
Several factors contributed to this funding winter, including cautious investors slowing down on closing rounds and a considerable year-on-year decline. Late-stage funding rounds have notably disappeared in the last two months, continuing a trend from earlier in the
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