FAQ # 10 - What are the chances of getting investments in current situation?
Advice - Startups should never be started with the sole intention of raising funds. I reiterate if a good idea is driven by passionate founders and with a serious intention of doing business, investors will follow you.
As per Economic Times, Startup Funding for March 2020 dropped by over 50% as compared to the previous month, reveals data from Venture Intelligence. The startup data tracker reported that Indian startups managed to raise only $354 million across 34 deals, down from $714 million secured in February across 46 deals. At $1.74 billion (across 126 deals), startups also saw a 22% year-on-year decline in investments for the first quarter of 2020. The numbers reflect a significant slowdown in funding activities, primarily caused by a sluggish economy coupled with the ongoing nationwide lock down.
However the point to be noted is #=Investments have not stopped! With the government taking all possible efforts to revive economy, we should be again seeing the good old days in Q2 / Q3.
The crisis has brought a change in investment patterns. VC firms are shifting their focus from tech-centric startups to even the ones operating in sectors such as #FMCG, #OnlineDelivery and #OTT entertainment.