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New Delhi, Global VC investment sank to $344 billion across 37,808 deals in 2023 from $531.4 billion across 51,894 deals in 2022 amid geopolitical, macro-economic and other challenges like high interest rates and inflation, a parched exit environment, and ongoing concerns related to startup valuations. The Americas accounted for more than half of VC investment this year ($183.6 billion), while the Asia-Pacific region attracted $92.4 billion, and Europe $62.3 billion, according to the <keyword id="19896405" type="General" weightage="20" keywordseo="kpmg" source="keywords">KPMG</keyword> Private Enterprise's 'Venture Pulse' report. The fourth quarter (Q4) of 2023 was a particularly soft quarter for the VC market, with global investment falling to $74.9 billion across 7,572 deals - the lowest levels since Q3 2016, respectively. The Asia-Pacific region also saw quite a slump, with investment falling to $18.8 billion in Q4 - the lowest level since Q1 2017, said the report. "The Indian economy is quite strong -- capital markets at an all-time high, favourable demographics, strong GDP and a stable and active central government. However, the VC investments in the last few quarters have been muted as compared to quarters before," said <keyword id="20305018" type="General" weightage="20" keywordseo="nitish-poddar" source="keywords">Nitish Poddar</keyword>, Partner and National Leader, Private Equity, KPMG in <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>. "This is not an indication of slow-down but the post Covid-19 euphoria dying down where there was excess money supply in the system. "With expected easing of interest rates, I am very confident that there will be a strong bounce back in the VC investments in the country," Poddar added. As VC investors globally continued to pressure their portfolio companies to reduce costs and enhance their focus on profitability, both VC investment and deal speed slowed significantly. The one major light in an otherwise dim quarter was artificial intelligence (AI) where investments were incredibly frothy as investor interest accelerated. AI-focused startups accounted for three of the $1 billion+ funding rounds this quarter. "The exit values in 2021 for VC-backed companies stood at a massive $1.5 trillion. Since then, exits have faltered - with only $225 billion in exit value this year," said <keyword id="20305019" type="General" weightage="20" keywordseo="conor-moore" source="keywords">Conor Moore</keyword>, <keyword id="20163118" type="General" weightage="20" keywordseo="global-head" source="keywords">Global Head</keyword>, KPMG Private Enterprise, KPMG International. In the US, AI-focused companies attracted six of the 10 largest VC deals of the quarter. Europe also saw three very large AI deals. "AI will likely remain one of the most attractive areas of VC investment well into the year, while M&amp;A activity could see some pick-up as opportunistic buyers look for bargains," said the report.

Global VC investments sink in 2023, India still a bright spot: KPMG

Both venture capital (VC) investment and the number of VC deals grew in <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> in the first quarter (<keyword id="20501879" type="General" weightage="20" keywordseo="Q1" source="keywords">Q1</keyword>) this year, from $1.6 billion across 313 deals (Q4, 2023) to $3.2 billion across 354 deals in Q1 2024, a report showed on Monday. <keyword id="19945816" type="General" weightage="20" keywordseo="Fintech" source="keywords">Fintech</keyword> continued to attract good attention, although at smaller deal values, according to the 'KPMG Private Enterprise Venture Pulse' report. "As expected, India has seen an uptick in <keyword id="21390504" type="General" weightage="20" keywordseo="VC-investments" source="keywords">VC investments</keyword> despite the deal activity being muted in Asia," said Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India. "This will only increase in the coming quarters given our robust GDP growth, strong demographics and expectation of stable government at the Centre. AI, power tech, health tech and agritech are some key sectors to watch out for," he added. Meanwhile, global VC investment fell slightly from $83.8 billion across 9,458 deals in Q4 2023 to $75.9 billion across 7,520 deals in Q1 this year amid geopolitical tensions, the extended drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages. VC investment dropped in both the Americas and Asia this quarter, while it rose in Europe, the report mentioned. The Americas accounted for almost half of global VC funding in Q1 ($38.2 billion across 3,205 deals) - with the US accounting for the vast majority of this amount ($36.6 billion across 2,882 deals). Meanwhile, Asia-Pacific attracted $18.9 billion across 2,305 deals, while Europe saw $17.9 billion across 1,798 deals, the report said. "Given how dry the exit environment has been for the last 18 months, it's no surprise VC investors are being very conservative in their deal-making right now," said Conor Moore, Global Head, KPMG Private Enterprise, KPMG International. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-8a-may-be-more-expensive-than-its-predecessor-as-per-a-new-leak/articleshow/109499394.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-8a-may-be-more-expensive-than-its-predecessor-as-per-a-new-leak/articleshow/109499394.cms" target="_blank">Google Pixel 8a may be more expensive than its predecessor, as per a new leak</a><a href="https://www.businessinsider.in/sports/webstories/at-17-indian-chess-prodigy-d-gukesh-becomes-youngest-challenger-for-world-championship/slidelist/109492021.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/at-17-indian-chess-prodigy-d-gukesh-becomes-youngest-challenger-for-world-championship/slidelist/109492021.cms" target="_blank">At 17, Indian chess prodigy D Gukesh becomes youngest challenger for World Championship</a><a href="https://www.businessinsider.in/business/telecom/news/telecom-companies-may-hike-tariffs-by-up-to-17-after-the-general-elections-as-per-analysts/articleshow/109240274.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/telecom-companies-may-hike-tariffs-by-up-to-17-after-the-general-elections-as-per-analysts/articleshow/109240274.cms" target="_blank">Telecom companies may hike tariffs by up to 17% after the general elections, predict analysts</a>

VC investments, deals grew in India in Q1 despite fall in global activity: Report

<ul><li>VC investments in India softened in the first quarter of 2023 but expected to pick up in the latter half of 2023 says a KPMG report. </li><li>This quarter, VC investors were inclined to make smaller investments in startups with more reliable valuations. </li><li>In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion.</li></ul>VC investment in India has softened in the January-March quarter of 2023 as investors were picky and scrutinized potential deals more intensely, says a Venture Pulse report by KPMG. VC investments went down to $2.1 billion in the quarter, down by 77% as compared to the same quarter last year when VCs poured in $9.1 billion into the market. “Despite the current slowdown in VC funding, macro factors in India remained relatively strong compared to other jurisdictions, which is driving optimism that the country will see a bounce back in VC investment in the later half of 2023,” said the report. The FOMO effect VC investments in Q1 of 2023 hit a 11-quarter low, as VC investments were at $2.1 billion last in the second quarter of 2020 – right when the lockdowns had started. Soon after however came a boom time. KPMG says that Fear of Missing Out or FOMO drove a lot of VC investment in India in 2021 and early 2022. However, without the FOMO effect is now gone and VCs enhanced their focus on startup performance and profitability. “The biggest change in India is that the euphoria for deals has died down. The FOMO has gone. The big ticket deals have also dried up, which has had an outsized impact on our total investment numbers,” says Nitish Poddar, partner and national leader, PE KPMG in India. Fintech was still a major area of investment, with large deals such as PhonePe, NoBroker, KreditBee, and Insurance Dekho. Agtech and gaming also saw increased interest. However, edtech interest declined in Q1 2023 after a period of high enthusiasm. “But despite the visible decline, it’s important to know that a lot is still happening in India. The macros here are still very good. We’re still seeing a lot of funding in pre-series A deals. And we’re still seeing a lot of new micro funds being raised in the country — funds under $100 million with check sizes from $1–5 million,” says Poddar. VC investments in Asia decline, Down rounds go up In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion. This was the lowest quarter for VC investment in the region since Q2 2015, with several factors contributing to the decline. In China, a surge in Covid-19 cases impacted VC activity prior to the New Year holidays. Hong Kong was affected by rising interest rates and a slowdown in IPO activity, while India experienced investors becoming more selective with their investments. Japan was the only country in the region to see an increase in investment during Q1 2023, but the total was still far lower than Q1 2022. The data also shows that down rounds (when the pre-money valuation of a fundraising round is lower than the post-money valuation of the round previous) has gone up significantly in 2023 as compared to the last year, the report reveals. In Q1 2023, the global VC investment trend showed a decline in each quarter following its peak of over $200 billion in Q1 2022. By Q1 2023, the total VC investment worldwide had dropped significantly, falling well below $60 billion. The uncertain global market, which is impacted by factors such as rising interest rates, domestic and geopolitical challenges, economic concerns, and the war in Ukraine, meant that no region was immune to the changing market conditions. This resulted in investors becoming increasingly cautious and risk-averse, leading to a reduction in VC investment activity.

FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

VC investment in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> dipped in the April-June quarter (Q2) as <keyword id="6359051" type="General" weightage="20" keywordseo="Investors" source="Orion">investors</keyword> shifted their focus to cash preservation in anticipation of <keyword id="6357455" type="General" weightage="20" keywordseo="Funding" source="Orion">funding</keyword> becoming less easy to obtain over the next few quarters, a report showed on Monday. VC investors in India now require companies to strengthen their paths to profitability and lower their cash burn, according to the report by KPMG. Venture financing in India surpassed $6.5 billion for the fourth consecutive quarter in Q2, and fintech remained the hottest area of investment in India during the quarter, in addition to e-commerce, social commerce, and gaming. "In India, the funding hasn't dried up yet, but many startups are taking proactive steps to reduce their cash burn given the increase in federal interest rates, the geo-political crisis, and other evolving issues," said Nitish Poddar, <keyword id="3654859" type="General" weightage="50" keywordseo="partner-and-national-leader" source="Orion">Partner and National Leader</keyword>, Private Equity, KPMG in India. Agritech also attracted a growing number of deals in Q2 in India, while the majority of these deals occurred at very early deal stages, the space is expected to see deal sizes grow as the sector evolves, said the report. While VC investment in India may be muted over the next quarter or two due to the global reduction in money supply and other factors, the country is expected to remain quite attractive to VC investors over the medium to longer term due to its relatively positive macroeconomic environment and market demographics, the report noted. Globally, investors became more selective and the VC funding reached $120.2 billion during the second quarter. "Investors increased focus on profitability while the Americas and <keyword id="28249" type="General" weightage="50" keywordseo="europe" source="Orion">Europe</keyword> showed most resilience, attracting $66.2 billion and $27.3 billion in VC funding, respectively, in Q2," said the report. "With valuations declining, many tech companies performing poorly on the public markets, and no end in sight to the level of geopolitical uncertainty, notwithstanding other challenges facing the VC market globally, we're starting to see investors instructing their portfolio companies to preserve cash." said Jonathan Lavender, Global Head, <keyword id="14325559" type="General" weightage="50" keywordseo="kpmg-private-enterprise" source="Orion">KPMG Private Enterprise</keyword>, <keyword id="274562" type="General" weightage="50" keywordseo="kpmg-international" source="Orion">KPMG International</keyword>. Heading into Q3, this trend is expected to continue as startups look to survive in an increasingly challenging environment where profitability will be of critical importance," he added. Global fundraising reached $158.6 billion at mid-year (first six months of the year), a record pace despite market uncertainty. "Against a backdrop of geopolitical, supply chain and economic uncertainty, overall global VC investment is falling, but several sectors, including fintech and cleantech, are beneficiaries of more selective investments," the report emphasized. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/samples-from-telanganas-1st-suspected-monkeypox-case-sent-to-niv/articleshow/93106837.cms">Samples from Telangana's 1st suspected Monkeypox case sent to NIV</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/indias-positivity-rate-crosses-7-again-after-an-almost-3-month-gap/articleshow/93105941.cms">India's positivity rate crosses 7% again after an almost 3-month gap</a>

VC funding dips in India in Q2 as investors focus on cash preservation

<ul><li>In the September ending quarter, the value of VC deals stood at $2.7 billion.</li><li>This quarter’s VC deal value is much lower than that of Q3, 2021 where it peaked to $15.9 billion.</li><li><keyword id="12740525" type="General" weightage="20" keywordseo="Fintech-investment" source="Orion">Fintech investment</keyword> continued to buck the trend as seen in many big deals, says <keyword id="50041" type="General" weightage="20" keywordseo="KPMG" source="Orion">KPMG</keyword>.</li><li>Globally, <keyword id="4522808" type="General" weightage="20" keywordseo="VC-investment" source="Orion">VC investment</keyword> dropped to a low not seen since the second quarter of 2020.</li><li>KPMG expects these challenges to continue in the fourth quarter, and deals will also take more time to close. </li></ul><keyword id="10940579" type="General" weightage="20" keywordseo="Venture-capital-investments-in-India" source="Orion">Venture capital investments in India</keyword> have been ‘quiet’ both in terms of deal count and value in the September ending quarter, says a KPMG report. For the June-September quarter this year, the total deal value of VC investments stood at $2.7 billion. This is significantly lower than what it was in the same period last year at $15.9 billion. However, deal values peaked in Q3 of 2021 and have been falling since then. But the Q3 deal value in 2022 fell sharply as compared sequentially too – from Q2’s $7.4 billion. Yet, there is a silver lining. “VC investment in India has softened this quarter across most industry verticals. Fintech investment however continued to buck this trend garnering significant investor attention as evidenced in the number of big deals,” said Nitish Poddar, partner and nation leader of private equity at KPMG India. The largest deal of the quarter was a $210 million investment in edtech UpGrad, and a $165 million investment into eyeglass prescription company, Lenskart. Neo-bank platform Niyo too raised $130 million during the quarter. “Fintech was one of the most attractive sectors of investment in India, this quarter. In addition to Niyo, online automobile insurance company InsuranceDekho raised $100 million, and digital lending company EarlySalary raised $97 million,” the report said. In spite of slowing, India is one of the few countries where VC activity is still resilient along with China and Japan, says the report. Every region had at least one over $1 billion mega deal Globally, VC investment dropped to a low not seen since the second quarter of 2020 – in the thick of the pandemic. This in spite of mega deals seen across every region like $1.9 billion raised by SpaceX in the US, $1.4 billion raised by Celonis in Germany and $1.2 billion raised by Sunwoda EVB from China. The overall VC funding for the quarter stood at $87 billion for Q3 globally, falling sharply from $136 billion in Q2. On a year-on-year comparison, the fall is even higher from $190 billion in Q3 of 2021. This quarter also saw a lot of down rounds where funds were raised at lower valuations, the report said. “Companies that have high valuation will have to work hard to keep them. On the positive side there is a lot of dry powder in the market. The strong companies and resilient ones will continue to attract funding and they will prosper,” said Jonathan Lavender, global head of KPMG. As per the report, the energy, healthcare and biotech sectors continued to witness good VC activity along with, while consumer focussed companies lost traction due to high inflation, interest rates and strengthening case for a global recession. KPMG also expects these challenges to continue in the fourth quarter as well. “Deals will take more time to complete as investors conduct robust due diligence, particularly on forecasts. While the IPO door is expected to remain firmly shut, there could be an upswing in M&amp;A activity as companies consider alternative exit plans,” the report said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/gold-and-silver-for-medium-to-long-term-as-investment/articleshow/94986756.cms" style="">'Gold and Silver for medium to long term as investment'</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-transmission-bags-project-from-best-to-install-over-1-million-smart-meters-in-mumbai/articleshow/94982223.cms" style="">Adani Transmission bags project from BEST to install over 1 million smart meters in Mumbai</a>

VC investments in India soften across all verticals, except fintech: KPMG

New Delhi, With 294 deals, venture capital <keyword id="6355120" type="UNKNOWN" weightage="20" keywordseo="investment">investment</keyword> in India reached $3.1 billion in the <keyword id="111300" type="PERSON" weightage="20" keywordseo="fourth-quarter">fourth quarter</keyword> of 2020, compared to $3.6 billion in the previous quarter, said a <keyword id="2496484" type="PERSON" weightage="20" keywordseo="KPMG-report">KPMG report</keyword>. While <keyword id="4522808" type="PERSON" weightage="20" keywordseo="VC-investment">VC investment</keyword> dropped somewhat during the fourth quarter of 2020, India saw the deal volume rise to its highest level since Q1 of 2018, according to the <keyword id="50041" type="COMPANY" weightage="20" keywordseo="KPMG">KPMG</keyword> Private Enterprise Venture Pulse report for Q4 2020. During Q4, home delivery, marketplace platforms, and e-commerce were the hottest areas of investment, attracting the majority of India's funding rounds of $100 million or more, including a $200 million raise by marketplace platform Cars24 and a $660 million raise by food delivery company Zomato. "There have been a number of sectors that have really benefited from the pandemic here in India. Interest in staples delivery - fresh food, groceries, and the likes - has grown quite significantly in recent months, in addition to online retail and gaming. That has driven a lot of investment," Nitish Poddar, Partner and National Leader -- Private Equity, KPMG in India, said in a statement. "Then there's edtech. It's been an attractive area for VC investors for a couple of years now -- but in 2020, that interest skyrocketed and so did the investments," he added. Despite global uncertainty resulting from a number of ongoing events, including the Covid-19 pandemic, global VC investment remained very robust in Q4, with $80.8 billion in investments across 5,418 deals. This strong performance helped drive annual global VC investment to $300.5 billion in 2020 -- up from $281.6 billion in 2019 and second only to 2018's record $329.7 billion despite a drop in deal volume, said the report. SEE ALSO; <a href="https://www.businessinsider.in/policy/economy/news/recession-in-india-will-end-latest-by-march-says-a-top-economist/articleshow/80399198.cms">Recession in India will end latest by March, says a top economist</a> <a href="https://www.businessinsider.in/tech/news/amazfit-smartwatch-gts-2-review-feature-rich-but-theres-still-room-for-improvement/articleshow/80398998.cms">Amazfit GTS 2 review – feature-rich, but there’s still room for improvement</a> <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-to-soon-introduce-voice-and-video-calls-for-web-multi-device-support-jiomart-integration-and-more/articleshow/80398791.cms">WhatsApp to soon introduce voice and video calls for Web, multi-device support, JioMart integration and more</a>

Venture Capital funding in India hits $3.1 billion in Q4 of 2020, says KPMG report

Mumbai, Apr 27 () After record USD 6 billion inflows into the country in the December 2019 quarter, VC investments plunged to a meagre USD 2.2 billion in the March 2020 quarter due to the coronavirus-driven uncertainties, according to a report. However, despite these challenges, the domestic market saw a number of large deals during the period under review, according to the report by KPMG. Though initially India was not as affected by the COVID-19 pandemic as China in the reporting quarter, concerns grew later because India receives a significant amount of venture capital (VC) from international firms and corporates. As a result, many deals got deferred as these investors wait to see how the pandemic affects their businesses. "While the pipeline for deals is expected to remain relatively robust, deal flow is expected to become very slow, particularly in Q2 (second quarter). Though VC investments may be challenging in the short term, it is expected to remain robust over the longer term," Nitish Poddar of KPMG India said in the report. Education technology (edutech) is expected to remain a very hot sector for venture capitalists, in addition to auto-tech, and health-tech related to fitness. Gaming can also see an uptick in interest, said the report and underlining the USD 400 million fund raising by Byju's in the quarter, USD 110 million by Unacademy, and Aakash Educational announcing its acquisition of Meritnation during the quarter. Then there was the mobility firm Bounce raising USD 150 million, the report noted. "With the lingering COVID-19-spawn uncertainty, (venture capitalists) are expected to become even more risk averse now and will take time to re-evaluate their portfolios given the current situation. However, with the pandemic basically slamming the IPO (initial public offering) market door shut at least for the short term, some companies may require bridge funding to get through the market turbulence where comes the role of the VCs," Poddar said in the report. The report also noted that given the travel and movement restrictions, cross-border VC investment will be very challenging heading into the second quarter. The inability to conduct in-person due diligence and face-to-face meetings will likely curtail a significant amount of cross-border activity, with some VC investors choosing to stick closer to home. BEN HRS

VC inflows tumble to just USD 2.2 bn in Mar quarter

<ul><li>According to a <keyword id="2496484" type="PERSON" weightage="20" keywordseo="KPMG-report">KPMG report</keyword>, VC <keyword id="1391756" type="PERSON" weightage="20" keywordseo="Investments-in-India">investments in India</keyword> dipped to $2.2 billion in the first quarter of 2020. </li><li>In the last three months of 2019, the number was as high as $6 billion. </li><li>India’s VC deals were affected as a significant amount of investments in the country come from international VC firms and corporates.</li></ul>In the wake of the coronavirus pandemic, businesses around the world have been impacted. Investments have halted as businesses went into a ‘wait and watch’ mode. But the impact of coronavirus in India began even before the lockdown was put in place. According to a KPMG report, <keyword id="502164" type="PERSON" weightage="20" keywordseo="VC-investments">VC investments</keyword> in India dipped to $2.2 billion in the first quarter of 2020. In the last three months of 2019, the number was as high as $6 billion. But with the coronavirus panic only growing in India and the number of cases rising despite a lockdown, the future seems grim for VC investments. “VC investors are already starting to ask the question, ‘How will your business be impacted by COVID-19?’ This is a question everyone will be asking for the next few quarters. Here in India, we are beginning to feel the full impact of the virus. Over the next quarter, while the pipeline will likely remain strong, deal flow is expected to slow down. A lot of deals will probably get deferred to the later half of the year,” said Nitish Poddar, partner and national leader - Private Equity, KPMG in India in a statement. India’s VC deals were affected as a significant amount of investments in the country come from international VC firms and corporates. Sectors to watch out for In the first three months of 2020, edtech emerged as the clear winner as investors pinned hope on the sector that is seeing growth and transformation. Some of the biggest investments were unicorn startup Byju’s raising $400 million, Unacademy getting a $110 million cheque, and Aakash Educational’s acquisition of Meritnation. All edtech <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> have opened up their courses and classes for free and have already seen a surge in the number of users. In March alone, Byju’s saw 6 million new students on its platform, while Unacademy crossed one billion minutes of watchtime of its content on its platform and across its YouTube channels in the month of March 2020. In addition to edtech, sectors like gaming, autotech, healthtech especially fitness could witness an uptick in investments, says the KPMG report. Because of the lockdown, the gaming sector has already seen a massive jump in the number of players. Paytm First Games expects it to cross 10 lakh in coming weeks, while Winzo has seen concurrent users increasing by 30%-40% day on day and the paid conversions have increased by 20% on the platform. See Also: <a href="https://www.businessinsider.in/business/news/as-malls-continue-to-stay-shut-retailers-turn-to-the-government-for-support-for-rent-waivers-gst-concessions-and-more/articleshow/75405599.cms">As malls continue to stay shut, retailers turn to the government for support for rent waivers, GST concessions and more</a> <a href="http://businessinsider.in/india/news/rice-miller-krbl-has-enough-supply-and-demand-but-little-material-to-pack-them-in-due-to-coronavirus-lockdown/articleshow/75406664.cms">India's top rice miller KRBL has enough supply and demand but little material to pack them in</a>

VC investments in India dipped to $2.2 billion in the first three months of 2020, and experts see a grim future

<ul><li><keyword id="164917" type="PERSON" weightage="20" keywordseo="Saurabh-Srivastava">Saurabh Srivastava</keyword>, Chairman Emeritus, TiE Delhi-NCR and co-founder of NASSCOM, believes this is not the right time for <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> to give up their equity in a funding round, for they will be valued for much lesser. </li><li>The <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> pandemic has already hit VC <keyword id="6362476" type="UNKNOWN" weightage="20" keywordseo="investments">investments</keyword> in India. </li><li>Meanwhile, TiE Delhi and <keyword id="3080401" type="PERSON" weightage="20" keywordseo="Indifi-Technologies">Indifi Technologies</keyword>, which lends to startups and SMEs, have come together to provide startups with growth capital.</li></ul>SoftBank Chairman Masayoshi Son during the company's earnings calls today said that he is now going to be 'cautious' with new investments. "Going forward, nobody knows what will happen, especially when it comes to the potential second wave that could be bigger than the first one (coronavirus). We cannot promise that there will not be any additional valuation loss," he said. And Son's fear will be resonated by investors across the world. And that makes it not a good time to raise funds. Closer home too, experts are against the idea. This is not the right time for startups to give up their equity in a funding round, for they will be valued for much lesser, believes Saurabh Srivastava, Chairman Emeritus, TiE Delhi-NCR and co-founder of NASSCOM. “What the startups need now is to scale, it’s hard for them at this time to get any equity infusion and if they do it will dilute them much more than what otherwise it would have done. There aren’t many instruments that they can use, where they can keep their stake,” said Srivastava in a recent chat with Business Insider. Srivastava was referring to the latest option for startups to gain capital – where TiE Delhi and Indifi Technologies, which lends to startups and SMEs, have come together to provide startups with growth capital. The growth capital will be a loan to the tune of ₹10 lakh to ₹2 crore to TiE Delhi-NCR members which will help them meet their working capital requirements amid the Covid-19 crisis and beyond. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="10" retweetcount="2" status="#HangoutwithBI | @BiIndia's @iyer_sriram with @alokmittal001, Angel Investor and @TheSaurabhSri, Chairman Emeritus,… https://t.co/BxYpfwT5Eb" createdat="1589443550000" id="1260843750403661824"></div> “This is designed for companies that are in business already, they have a track record of revenues. For an entrepreneur who has a profitable business that can actually scale,” said Srivastava. Alok Mittal of Indifi added that for the loan, that they have set a revenue threshold of ₹10 lakh per month, as an eligibility criteria. India’s startups are vowing by the philosophy to scale in the times of a crisis. Every other day, startups are announcing pivots to new unexplored categories where they hope to see growth. But these pivots and experiments don't come for free. This is also a time when startups need to have the cash that fuels their growth. The coronavirus pandemic has already made investors wary. In the first quarter of 2020, VC investments fell sharply to just $2.2 billion, after garnering $6 billion in the last quarter of 2019, according to KPMG. “VC investors are already starting to ask the question, ‘How will your business be impacted by COVID-19?’ This is a question everyone will be asking for the next few quarters. Here in India, we are beginning to feel the full impact of the virus. Over the next quarter, while the pipeline will likely remain strong, deal flow is expected to slow down. A lot of deals will probably get deferred to the later half of the year,” said Nitish Poddar, Partner and National Leader - Private Equity, KPMG in India in a statement. But Srivastava would like to bet on startups even during this time. “If we were to nurture our startups, they will change the game for India, not just big industry,” he said. See Also: <a href="https://www.businessinsider.in/tech/news/chinese-hackers-are-using-backdoors-to-gain-unrestricted-access-to-companies-and-governments-and-its-not-about-the-money/articleshow/75796403.cms">Chinese hackers are using backdoors to gain unrestricted access to companies and governments — and it’s not about the money</a> <a href="https://www.businessinsider.in/politics/policy/news/india-will-merge-some-government-companies-and-privatise-some-cpse/articleshow/75785709.cms">India will reduce the number of central government companies⁠— some of them will get bigger and some will be sold to private players</a>

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Global VC investments sink in 2023, India still a bright spot: KPMG

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VC investments, deals grew in India in Q1 despite fall in global activity: Report

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FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

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VC investments in India soften across all verticals, except fintech: KPMG

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Venture Capital funding in India hits $3.1 billion in Q4 of 2020, says KPMG report

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VC inflows tumble to just USD 2.2 bn in Mar quarter

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VC investments in India dipped to $2.2 billion in the first three months of 2020, and experts see a grim future

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Startups who need money during COVID-19⁠— don’t sell your stake now, warn experts

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