The Funding Winter is Real !

Why Startups are Failing in India If you’ve been following the startup ecosystem in India, you’ve probably heard the term funding winter—a period of declining venture capital (VC) investments, slower deal-making, and increased scrutiny of startups. But why is this happening? Let’s break it down. 🔍 Key Reasons for the Funding Slowdown 1️⃣ Global Economic Uncertainty – Rising interest rates, inflation, and fears of a recession have made investors more risk-averse. The free-flowing capital of 2021–22 has dried up as global VC firms turn cautious. 2️⃣ Overvaluation & Correction – Many Indian startups raised funds at sky-high valuations, sometimes without strong fundamentals. Investors are now prioritizing profitability over hypergrowth, leading to a valuation reset. 3️⃣ Tech Stock Meltdown – The crash of high-profile tech IPOs (both in India and globally) has shaken investor confidence. Companies that once seemed invincible are now struggling, forcing VCs to rethink their bets. ...