COVID-19: Startups see VC funding drying up

Various global events such as COVID-19 and the overall economic situation in the world and India are causing major startups to go without any sort of Venture Capital funding.

A report on Indian startups titled “The Startup Outlook” by venture debt fund Innoven capital has also said that 79% of the startups believed that growth was more important than profits.

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The situation looks grim as 58% of the founders expect funding to be more challenging in 2020 as compared to 25% in 2019.

Other features of the report include:

Only 35% of the founders rated the government’s efforts to promote Startups as ‘good’.
The positive aspect that was deducted from the report was a whopping number of 79% of the startups had women in leading roles in 2020 as opposed to 69% in 2019.

Food web aggregator Swiggy was declared as the most popular brand.

The report surveyed over 100 startups and founders in a senior positions.

Startups are dominating not just urban centres but also semi-Urban and rural areas across India. The nation hosts some of the most numbers of startups in the nation and a number of unicorns.

However, a number of challenges in terms of funding, regulatory approvals and issues related to ease of doing business have affected the functioning of the startups, many of which have transferred their bases to Singapore in recent times.

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