There are many factors, which are impacting the start-up ecosystem currently – expensive funds, lower valuations and also focus on the concept of profitability and that thrust by the investors.
So fund raising this year has been lower compared to the same period last year. How the industry is poised for the next few months to come in terms of the new trends emerging in this particular space?
Gopal Jain, Co-Founder and Managing Partner of Gaja Capital sees things changing over the next six-twelve months as people become more and more resigned or start accepting that this is a new normal.
“Indian economy is still strong but any investor who is plugged in the global economy is feeling nervous right now,” he said.
According to him, people are expecting lower valuations but many companies are holding back, people are confused as is this a passing shower or is this climate change. As a result of which, funding activity has significantly declined.
“There is still a very strong market for A-list companies and they need not think about timing, there is a substantial amount of dry powder within the venture capital private equity ecosystem and investors are still prepared to pay for growth,” Jain added.
Sasha Mirchandani, Founder and Managing Partner of Kae Capital believes this is the right time to invest.
For the entire discussion, watch the accompanying video