It is a winter of joy for start-up founders, as many VC’s have shifted their focus to early-stage start-up’s. This is a result of the global economic slowdown. The Indian venture capital investments is down by around 80% in Q3 of 2022 and is back to levels comparable to 2020. As a result, there is a growth slump in the number of new unicorns for the last 2 quarters and has also put a pause on many start-up IPOs that were planned in 2022. This has led to VCs shifting their focus from large funding deals i.e. $ 25 million and above, to entering into early-stage deals with an investment size of $ 2 million to $ 10 million. While the world adjusts to the economic slowdown leading to a funding freeze among large start-up, VCs have shown immense interest towards consumer-oriented start-ups in India with their key focus on Tier 2 and Tier 3 markets, where they still expect reasonable growth opportunities.
HA, though sector agnostic, continues to focus on the following start-up sectors – Consumer Tech, Health Tech, Space Tech, Mobility & Logistics, Deep Tech, Enterprise SAAS and Fintech, with companies having strong sales growth focused founders.
In Aug 2022, HA elected its new Chairman, Mr. Rajesh Manthena and Vice chairman, Mr. Pradeep Dhobale. We aim to continue contributing to the ever-growing Indian start-up ecosystem. We at HA hope all our members, start-up founders, associations and partners had a Happy Diwali.