Sujata Sangwan | Page 3

Since January 2023, at least 10 B2B SaaS companies have raised money monthly in India at various stages, according to Tracxn data. Despite having a solid number of deals in January and February, March saw the highest number of transactions.

The investment conglomerate is shifting from investing in startups valued at $5 billion to startups valued at roughly $2 billion. Additionally, it reduced cheque amounts from $1 billion to $100-150 million.

Having a validated product or service and demonstrating market traction are essential for attracting early-stage investors. Startups are more likely to attract investment interest if they can demonstrate early consumer adoption, revenue growth, or partnerships with significant players in the industry.

20 fund officials received an email from the capital markets regulator last week asking for suggestions on how to lighten the burden of compliance.

An early stage investor, Vertex Ventures mostly invests in the seed funding and Series A stage. Supported by Singapore state investor Temasek, it has made 34–35 investments so far from its $305 million Fund IV launched in 2019.

The Central Board of Direct Taxes (CBDT) announced a list of 21 source countries that will not be subject to the angel tax provisions on Wednesday. The list did not include nations like Singapore and Mauritius, which have established themselves as preferred jurisdictions for investments in India.

For entrepreneurs who are willing to take advantage of opportunities, recessions can really be a time of growth. Here are 8 strategies for profiting from a downturn.

However, the majority of businesses in India are operated by men, and there aren't many women-owned businesses. There are still few venture capitalists who are ready to take a chance by continuing to believe in the women leaders, even though most of the discourse about equality is just lip service.

Following the RBI's decision to stop issuing INR 2000 notes, several businesses noticed that payments were now made in the withdrawn currency.

Due to the funding crisis, this year's startup pitching has undergone a major shift, with a stronger emphasis now being placed on cost structures, profitability, and unit economics.

Post the amendments proposed in the Finance Bill, concerns have been raised over the calculation method of fair market value (FMV) under two distinct laws.

Investors regularly monitor their portfolios in the erratic startup environment and adjust to shifting market conditions. Valuation reductions serve as a reminder of the value of thorough study, wise judgement, and the capacity to deal with uncertainty.

The startup environment has recently slowed down, which has resulted in fewer VC funding and slower growth, creating a vicious cycle. Unfortunately, the first casualties of this crisis have been layoffs across various sectors. However, it's important to keep in mind that a similar or worse situation existed at the height of the Covid-19 outbreak, and the resilient business models survived that time unharmed.

The era of easy and abundant capital is over so it is essential for startups to exhibit strong fundamentals and sound strategy during this funding winter.

In this current environment, traditional sources of financing are less willing to invest, leaving entrepreneurs in need of assistance. Venture debt provides a viable alternative that enables startups to receive finance without reducing their ownership equity.

The funding winter has given domestic venture capital firms a rare chance to demonstrate their adaptability and resilience. During these difficult times, new strategies and crucial maxims have emerged, changing the financial landscape.

Due to the global liquidity crisis, the investment ecosystem has slowed down, but risk investors are still interested in India-focused funds.

Companies in the growth stage have already built a consumer base and validated their value proposition. As a result, investors' returns can be more guaranteed.

THB said it will use the funds in expanding its operations globally and accelerating growth in existing countries across South Asia, Middle East and South East Asia.

On Wednesday, Multiples PE marked the first close of its fourth fund at USD 640 million. Going forward, the private equity major plans to pursue big-ticket investments via the co-investment model, with a cumulative investment target of over USD 1.5 billion in the coming three to four years through Fund IV.

The Bengaluru-based venture capital fund closed its maiden growth fund Chiratae Growth Fund (CGF-I) at INR 1,001 crore on Wednesday. The sector-agnostic fund will be targeting technology startups, seeking Series C or later-stage funding, from its portfolio and beyond. It will invest in the range of INR 40-150 crore each in about 12-15 companies

In 2023, investments in early-stage businesses have increased significantly. This is a result of tier-I venture capitalists taking a more cautious approach in their search for businesses with good unit economics and the potential to become profitable in the upcoming years.

India ranked in the top five regions in terms of total funding activity in Q1 2023 and was the second-highest funded territory globally for fintech funding.

Small and medium-sized businesses (SMEs) constitute the backbone of the Indian economy, making a considerable contribution to job creation and economic expansion. The demand for accessible and affordable financing solutions for SMEs has increased as a result of the government's emphasis on advancing the industry through programmes like Make in India, Digital India, and Startup India

Given the bad environment, the majority of investors (57%) expect a further reduction in fundraising activities in 2023. Fintech, Enterprise SaaS, and Climate-tech are the top three industries on investors' radars this year.

There is still a need for further reforms to create a more supportive environment for startups and angel investors in India, even though the new exemption guidelines have given startups and angel investors some relief by allowing the startups to claim exemption if their total investment does not exceed Rs 25 crore