Rising Funding Deals, Shrinking Cheque Size
Bengaluru, India | Red Newswire | Nov 14, 2015 Last Updated at 05:00 PM IST.
This year has seen a lot of mess regarding startups who are struggling and striving to maintain their funds, data shows and so on. Probably this year has seen more mass layoffs than the previous one. Even though funding has increased, the size of cheques is getting smaller and smaller as the investors are becoming more conscious of their investments.
In the past 3 months, more than 53 fundings have taken place compared to the 43 deals of the first quarter of the year. last year, only 24 deals were finalzed in first 10 months according to startup data from Tracxn. Those deals included already funded companies opting for next round of investments and new startups seeking funds for the first time. Now this year has broken the records by registering 494 deals till October. Last year the counting stopped at 237.
The most successful accelerator of the country i.e., GSF said that there has been a fast and thick flow in seed funding rounds and Series A deals. Three of the startups from its current batch got Series A funding in October and another 4-5 can be expected by the close of the year. Rajesh Swahney, GSF founder said, “I don’t see any slowdown at seed stage or Series A stage for quality companies. Despite all the noise about a slowdown, I will go by data which shows the ecosystem is robust.” He also added that the valuation concerns slow down the funding at later stages.
Source: Times of India