As of October 3, 2023, India has over 112,718 startups recognized by the Department for Promotion of Industry and
Internal Trade (DPIIT). This makes India the third largest startup ecosystem in the world. One key challenge is the limited
availability of early-stage financing. While venture capital investment has surged, reaching approximately $10 billion in
2023, much of this is concentrated in later-stage startups. Early-stage ventures often struggle to secure funding due to the
perceived high risk and lack of a proven track record.
Moreover, there is a geographical concentration of funding, with a significant portion of venture capital investments
flowing into startups based in major cities like Bangalore, Mumbai, and Delhi. This leaves startups in other regions
struggling for visibility and funding. Additionally, there's a sectoral skew in investments, with a majority of funding going
into technology-driven sectors like e-commerce, fintech, and edtech. This trend leaves other potentially innovative sectors
underfunded.
Accessing Corporate Venture Capital (CVC) in India is a growing trend among startups, but the process can be complex due
to various factors. One of the key challenges is aligning the strategic interests of the corporate with the startup's goals.
CVCs, being subsidiaries of larger corporations, often look for startups that can add value to their parent company’s
business. Furthermore, startups need to navigate through the corporate's internal processes and decision-making
hierarchies, which can be quite different from dealing with traditional venture capital firms.
A notable shift is seen in their investment patterns, with a growing inclination towards early-stage startups and
technology-driven companies. Unlike conventional venture capitalists, Family Offices often display a higher risk tolerance
and are willing to invest in disruptive ideas without a proven track record. This has led to a surge in funding for Indian
startups, particularly in sectors like fintech, health tech, and artificial intelligence. The collective investment from Family
Offices in Indian startups over the past five years has crossed $2 billion, significantly boosting the startup ecosystem.
Lastly, the Indian startup ecosystem, while growing, still lags in terms of support infrastructure compared to global
standards. Issues like mentorship, incubation support, and access to global markets are areas that need strengthening to
boost the overall health of startup financing in the country.
The webinar on "Funding Solutions for Startups" will shed light on the aspects discussed above and will provide an
opportunity for the participants to share their views and exchange ideas.
Programme Agenda
Time: 4:00 PM to 5:00PM
Key Discussion Points:
• Accessing Corporate Venture Capital (CVC)
• Limited Early-Stage Financing
• Sectoral Investment Skew
• Role of Family Offices
• Role of Accelerators and Incubators
