Are investors giving Indian start-ups a second chance?
In August 2015 the investment towards start-ups was nearly $900 million and the number of start-ups funded were 90.
Indian start-ups in August breathed a sigh of relief as $642 million worth of funding flowed into the ecosystem. This was a more than double growth (109%) in the funding from the previous month which stood at just over $300 million and thrice the amount raised in June. The funding in July went to a total of 87 startups during the month, according to a report by Inc24.
However, the number of deals in August was 10% less than in July 2016. Besides this, there was a 27% drop in funding as compared to August 2015. And a 3% drop in deals as compared to the corresponding month last year.
In August 2015 the investment towards start-ups was nearly $900 million and the number of start-ups funded were 90.
What comes as even better news for start-ups is the return of investors. After witnessing a continuous fall in the number of active investors since February 2016, the month of August showed signs of a recovery in the funding towards start-ups with over 177 investors, said the report.
The late stage funding crunch that started since September 2015 has finally started to show signs of recovery. In August around $463 million was invested in late stage funding from around $200 million in July and around $100 million a month prior to this.
Delhi-NCR saw a maximum of funding for start-ups which amounted to $394 million for 30 startups. Mumbai came in next with a total funding of $167 million for 19 startups.
The merger and acquisition (M&A) deals in the ecosystem too have declined during the month. The number of M&A in the ecosystem has fallen by 39% in comparison to April 2016.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
04:05 PM IST