22072024 Mumbai WOLFDEN:
- The startup funding in India fell over 62 per cent in 2023 as compared to 2022. 2023 was a game changing year for startup investments with valuations being rationalised. How has that impacted your investments and what shifts have you made in 2024 so far as compared to 2023?
- How was the experience in terms of ease of Setting up a fund in India as compared to overseas? What made you create a fund dedicated specifically to T2 and T3 of India?
- Are there any geographical shifts in global startup funding senario, such as new regions or countries gaining prominence as investment hubs? What is the overall Global scenario looking like? What does India need to do better as compare to its global counter parts?
- How are emerging technologies like artificial intelligence, quantum computing, and biotech influencing investment decisions in the startup ecosystem this year?
- What are the emerging trends in Consumer Space? What is the next big thing coming up in consumer segment and how do you look up to it? How do you see Consumption patterns changing with more buying power shifting towards Gen Z?
- However, the bigger problem for D2C companies is their cost of customer acquisition and logistics cost. What do you think how can D2C companies operate better and grow faster
- What are your learnings as an investor for your earlier two funds.
- Where will you be investing for Viksit Bhart 2047?
The WOLFDEN INVESTOR SUMMIT 2024, held in Mumbai, concluded with outstanding success, solidifying its status as a premier event for VENTURE WOLF. The summit surpassed last year’s attendance, drawing participants from both domestic and international locations.
A highlight of the event was the thought-provoking panel discussions, which captivated the intellectually engaged audience. Attendees included founders, entrepreneurs, accelerators, students, investors, and more, all contributing to the dynamic and vibrant atmosphere.
The fourth panel titled, ‘Startup Funding Trends for 2024; Shifting Investment Strategies’ was moderated by Bhavesh Kothari, armed with more than 2 decades of professional experience, he has been credited to be a pioneer in the startup mentoring domain and has mentored and nurtured more than 7-8 dozen start-ups over the last 12+ years.
The panel featured esteemed industry stalwart investors:
- Vikram Gupta, Founder & Managing Partner, IvyCap Ventures. A Venture Capital Fund Management Company focused on professional entrepreneurs. IvyCap Ventures is India’s first Innovation and Technology VC Fund that leverages the Alumni ecosystems for investing, value creation and divesting. Vikram conceptualised and helped set up India’s first Endowment Fund at IIT Delhi for which he was also awarded the Distinguished Alumnus award by IIT Delhi.
- Anil Joshi, Managing Partner, Unicorn India Ventures, a SEBI approved venture fund under AIF-I Category. The investment thesis of the Fund is to invest in incubation stage, accelerator stage, seed stage, start-up stage, early stage and growth stage companies in India with focus on social media, Mobile, Analytics & Cloud (SMAC), IOT and Fintech. (Deeptech)
- Pratekk Agarwaal, Founder & General Partner, GrowthCap Ventures. He is a seasoned entrepreneur & operator, boasting over 20 years of multi-industry experience in setting up and scaling successful businesses, with a focus on the financial services domain.
- Siddhant Gupta, Angle Investor, VP, Investments, Sixth Sense Ventures. He works with India’s first domestic consumer-focused venture fund, investing in innovative and disruptive startups that cater to the evolving needs and aspirations of Indian consumers.
- Amit Singhal, General Partner at Fluid Ventures. Fluid ventures is an early-stage SEBI registered Category -1 Fund investing upto USD 0.5 million in India focused D2C startups.
- Mahavir Pratap Sharma, A serial entrepreneur and part of umpteen businesses and social organizations, Founder at Swishin Ventures, Co-founder and Chairman of Rajasthan Angel Innovator Network (RAIN), Chair of the TiE India Angels (TIA), Founding vice-chairman of Rajasthan Export Promotion Council (REPC), Founder and owner at Oscar Expo Design LLP.
- Arjun Vaidya, Co-Founder at V3 Ventures. He leads investing for Verlinvest through V3 Ventures. Investing in pre series A and series A rounds across the consumer ecosystem – consumer brands (D2C), platforms, consumer technology and enablers.
In 2023, India’s startup funding experienced a dramatic decline, plummeting by 72% from $25 billion in 2022 to $7 billion. This significant drop has reshaped investment strategies, leading to a more cautious approach in 2024. Investors are now prioritizing sustainable growth and profitability over rapid expansion. This shift has resulted in a revaluation of portfolios, with a greater emphasis on early-stage startups that exhibit strong fundamentals and clear paths to profitability. Additionally, there has been a marked increase in investments in resilient and promising sectors such as healthcare, artificial intelligence, and clean energy.
Establishing a fund in India presents unique challenges and opportunities compared to other markets. The regulatory landscape in India can be complex, requiring multiple layers of compliance and approvals. However, the Indian government has been proactive in introducing policies to support the startup ecosystem, such as the Startup India initiative, which has simplified some processes. Recognizing the untapped potential in Tier 2 and Tier 3 cities, a fund dedicated to these regions has been created. These areas are experiencing rapid digital adoption and have a growing pool of talented entrepreneurs often overlooked by traditional investors. By focusing on these regions, the fund aims to foster innovation and drive inclusive growth.
Globally, startup funding dynamics have shifted notably. The United States continues to lead, particularly in sectors like AI, healthcare, and clean energy, with a 72% increase in funding in early 2024. China has also seen a rise in investments, especially in the automotive and AI sectors. Conversely, Europe has experienced a decline due to macroeconomic uncertainties. For India to compete more effectively on the global stage, it needs to enhance its infrastructure, streamline regulatory processes, and foster a more robust innovation ecosystem. Additionally, increasing collaboration between academia, industry, and government can drive significant advancements and attract global investors.
Emerging technologies such as artificial intelligence, quantum computing, and biotech are significantly influencing investment decisions in 2024. AI is driving substantial investments due to its applications across various industries, from healthcare to finance. Quantum computing, although still in its nascent stages, holds promise for solving complex problems currently beyond the reach of classical computers. Biotech continues to attract attention, especially in the wake of the COVID-19 pandemic, with innovations in drug discovery and personalized medicine.
In the consumer space, trends such as sustainability, personalization, and the rise of Gen Z as a significant consumer group are shaping the market. Gen Z’s increasing buying power drives their preference for brands aligning with their values, such as sustainability and social responsibility. The next big thing in the consumer segment is likely to be the integration of AI to enhance personalized shopping experiences and the adoption of augmented reality for immersive retail experiences.
Direct-to-consumer (D2C) companies face significant challenges in customer acquisition and logistics costs. To operate more efficiently, D2C companies can leverage data analytics to optimize their marketing strategies and improve customer retention. Investing in robust logistics infrastructure and exploring partnerships with third-party logistics providers can also help reduce costs and improve delivery efficiency.
As an investor, key learnings from earlier funds emphasize the importance of due diligence, the need for a diversified portfolio, and the value of supporting startups with strong leadership teams. These experiences highlight the importance of patience and long-term thinking in achieving sustainable returns.
Looking ahead to Viksit Bharat 2047, the investment focus will be on sectors driving economic growth and social development. This includes technology-enabled development, energy transition, and climate action. By investing in these areas, the goal is to contribute to India’s vision of becoming a developed nation by 2047, with a strong emphasis on inclusivity and sustainability.
India’s startup landscape is evolving, with a focus on sustainability, innovation, and inclusive growth. By overcoming regulatory challenges and leveraging emerging technologies, Indian startups can achieve global success. Strategic investments in resilient sectors and Tier 2 and Tier 3 cities will drive economic development and contribute to India’s future as a developed nation.
Please like our pages: on Facebook & LinkedIn. #Way2World brings #StartUpNews from #StartUpResources about #StartUpFounders, #Co-Founders, #WomenEntrepreneurs, #WomenLeaders, #StartUpMentors, #StartUpInnovation #StartUpIncubators, #StartUpAccelerators and #StartUpListing. The #StartUpArticles, #StartUpReviews and #StartUpStories discuss #StartUpFunding, #IndianStart-Ups their #BusinessServices along with #StartUpName and #technologyimpactness. With Inputs from the Internet – RajKishan Ganta
DISCLAIMER: The above news item is provided for informational purposes only and does not constitute professional advice, legal opinion, or endorsement by WAY2WORLD. The accuracy, completeness, or timeliness of the information contained in this news item cannot be guaranteed. WAY2WORLD or its affiliates shall not be held liable for any errors, omissions, or damages arising from the use of the information provided. Readers are advised to verify the information from multiple sources and seek professional advice before making decisions based on the content of this news item. The views and opinions expressed in this news item are those of the author(s) and do not necessarily reflect the views of the publisher or its affiliates.
WAY2WORLD does not endorse or promote any specific product, service, or organization mentioned in this news item unless otherwise stated. Readers are encouraged to use their discretion and judgment when interpreting and applying the information provided in this news item.
The comments posted here/below/in the given space are not on behalf of WAY2WORLD. The person posting the comment will be in sole ownership of its responsibility. According to the central government’s IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.