- Top VCs say funding drought in growth stage startups is due to a lack of investible companies.
- They dismiss concerns of a funding winter, saying the real problem is a lack of good assets to invest in.
- Despite challenges, the Indian startup ecosystem saw 8 funding rounds surpassing $100 million in the first half of 2024.
Top venture capital investors have said that the current funding drought in growth stage startups is due to a lack of enough investible companies. Sumer Juneja of SoftBank Vision Fund and Sanjay Nayar of Sorin Investments made these comments at the Moneycontrol Startup Conclave on August 9.
They dismissed concerns of a funding winter, saying the real problem is a lack of good assets to invest in. Prashanth Prakash of Accel also agreed, saying there is a fundamental mismatch between assets in the public market and the appetite.
Despite these challenges, the Indian startup ecosystem saw 8 funding rounds surpassing $100 million in the first half of 2024. The ecosystem is also looking at as many as nine IPOs this year, with Ola Electric making a successful market debut.
