Early-stage firms get big bucks, but not all so lucky

Early-stage firms get big bucks, but not all so lucky

  • Getty Images Tracxn data shows the total number of funding rounds across all stages in the quarter ended March fell more than 33% compared with the previous year, but the total investment inflow into the Indian startup ecosystem hit a new high at $2.75 billion.
  • BENGALURU: The average capital raised by early-stage startups in India has doubled over the last three years due to increased interest shown by large venture funds to bet early, but the number of companies getting funds has come down.
  • With top venture funds including Sequoia Capital, Accel Partners , SAIF Partners , Lightspeed Ventures, Nexus Ventures and Matrix Partners vying to get a toehold in fledgling startups as early as possible, startup founders are increasingly skipping angel rounds and opting to raise larger first cheques averaging more than $1.2 million, data from startup tracker Tracxn shows.
  • Venture capitalist too realise that they would likely get blocked out of good deals if they didn't bet early since most of these early-stage investors do have the corpus to back the company up to its growth stages.

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