Despite the ongoing wait for the final verdict of 2016 industrial status, it is no secret that this year has been extremely hard for startups and entrepreneurs. Younger startups have shut down shop, scores of job offers were pulled away, big investors faced losses and the competition is fiercer than ever before. The investment flow into the country has been subordinate compared to last year values and the markets have dipped to an all time low.

What is the status of funding?

Angels/Individual investors, venture capital based companies and private equity investors made good out of 559 deals, through efficient deployment of risk capital across the various stages. Despite raising a whopping $719 million in the second quarter, they could not beat the mark of $3.5 billion, set by 2015 in the same period.

A number of big bets placed in 2014-15 didn’t go well for the foreign investors. The investments that brought in early stage returns for big players in China, failed in India. As a result, the investors are highly pessimistic about the market and unwilling to put in their money. VCs and angels, both backed out of funding new businesses, in light of heavy losses.

Are there any lucky spots in the scenario? FUNDING NEWS

Definitely. The metropolitan cities like Delhi, Mumbai and Bengaluru have enjoyed a healthy traction of talent and income. Large numbers of deals have been made here and millions have been invested in their markets. 45 different marketplaces spanning a vast range of categories have managed to attract huge funding. Indian angel network including Tata group, Flipkart and other players of the Indian market continue to make bets like last year. Cost efficiency and great business models have helped startups to stay afloat and attract investors.

Influence of external factors

Development of Brexit is bound to have an impact on European economies and banks. Foreign investors are willing to invest only in companies with an efficient business model in place that can generate profits for them.

All in all, even though startups will bear the brunt of the falling economy, entrepreneurship will thrive on the strong economic ecosystem.

For More Startup News, Funding News, Trending News, Startup IdeaSuccessful Startups, Failed Startups & Reviews regularly visit Startupsfeed.com   Startupsfeed


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