which is post US elections after trump wins.

Recruiter

Welcome to Indian Startups's Private Community

Norwest has deployed nearly $500 million in India over the past 24 months.

‘Tech-only investing doesn’t make sense in India’

Funding winter may get over by next year

Software Developer

Funding winter may get over by next year- Grapevine

As we bid farewell to the challenges of the past, let's delve into why 2024 is poised to be a game-changer for the Indian Startups! 🚀

In 2020, the world weathered the storm of COVID, followed by unprecedented quantitative easing. We then saw that in 2021 the bull run came soaring. Investors, fueled by the appetite for riskier assets led to a funding boom for startups as salaries soared.

Fast forward to 2022, and the music is about to stop. The realization that the Fed would hike rates to curb inflation means that funding is about to dry up as big money will be invested away into debt/T-Bills. Though demand remained robust, the stock market felt the impact as JPow raised the interest rates. 

Late 2022 and 2023 saw the tech landscape experiencing layoffs, and startups facing significant headwinds. It’s a wonder  if anyone raised this year.

But here's the twist—2024 looks brighter. The stock markets have rebounded to all-time highs, signaling that things may be on the rise. Despite geopolitical tensions in Ukraine and Iraq, the macro outlook for India shines bright. 

For Indian Startups? VC Funding is still here to stay. So keep your heads down and keep building. From what I am hearing, it is set to make a roaring comeback. There is now significant rationality in the funding ecosystem leading to realistic valuations.

However, this revival will come with a plot twist. Newer companies, fueled by fresh funding, are set to rise, while most of the lofty valuations of those who raised in 2021 are about to crash and burn.

So buckle up folks. Let’s see where it takes us.

What do you think? 🤔

[Thread] Why 2024 is going to be a massive hit for the ecosystem?

Reads like an year end address from the company MD before the employees realize there are going to be no increments this year

Business Development Manager

Product Manager

Welcome to Personal Finance's Private Community

https://www.businessinsider.in/business/startups/news/the-funding-winter-is-thawing-and-expected-to-end-in-6-12-month/amp_articleshow/102567076.cmsp

So this new survey claims that funding winter will end in upcoming 6-12 Months. So I think job market should be back to normal, what's your take on it?

Software Engineer

So 2023 wasn't a funding winter. Rather a pre-covid year?!

300+ startups got a deal ( sorry funding, shark tank degraded my startup vocab)

Indian startups mopped up $2.77 billion across 326 deals in the March quarter or Q1 2024, as per data compiled by TheKredible.

Indian startups mop up $2.77 Bn in March 2024 quarter: Report

Funding winter is over

Senior Consultant

There’s now a list of 4-6 startups that have shut down and announced closure in December. Why is this happening

Why are so many startups shutting shop in December?

Year is ending in another 1 month.
A rough year for many startups winding off
Which startups do you think will wind off in next, 6 months?
Which startup should be saved and get VC fundings for continuing operations as Dhandha mode

Belly up startups

Founder

Which Indian startup is not gonna make it past the funding winter?

Is it only fintechs that are still hiring. I guess there is a hiring freeze across most of industries.

Funding winter but fintechs still warm

Welcome to Product Managers's Private Community

I am a generalist having 3 year experience working in startups (Series B and seed funded). 
I am handling Product and Growth in soon Series A Start-up. But I'm thinking to switch. 
Need guidance is it a good time to switch job?

Is it a good time to switch job?

I am building a D2C fashion brand and need to raise money (20 Lakhs) to get things off the ground. I am from Tier-I IIT and a single founder. 

I have been trying to approach investors through multiple mediums. Cold mailing / LinkedIn. But things haven't worked. 

College alumni also don't seem to respond, let alone give any warm intro. 

How should I go about the fund raising process?

Best ways to find angel investors

Product Marketing Manager

Welcome to Software Engineers's Private Community

I got the internship opportunity for fresher react js developer, stipend is 15000. As a fresher I've been looking for job from few days and I got an internship role should I go for it or wait for another calls to come in for permanent job.

Should I go for internship or wait for job

Any chances that the job market recovers anytime soon? Currently HRs are super-lowballing.

Job Market Recovery?

Engineering Manager

Interest rates will only increase. How this will impact job market a thread below! Share your opinion

Interest rates are not coming down anytime soon

Lawyer

Which unicorn will be first to go belly up in the funding winter

Meesho raised funds from Softbank and Tiger. Sign of funding winter ending soon?

Why do some startups lay off people even when they know that they'll be raising money soon via new funding?

Case in point: Dunzo

Are these employees given severance? Or is it just that Hi, Hello, Today is your last day, thank you, bye that you see most startups do?

What are your thoughts on this?

Funding and layoffs

Program Manager

The data is from Carta and mostly North American companies.

50% increase in startup closures

Consultant

Being an investor in equity markets, i was aware of the fact that US market will crash as the free money by fed draws back. I obviously was not able to link this up with the funding dry-ness.

I still expect a founder to be aware of these economic events. I am curious how could the management decide to go for hiring employees only to lay them off a year later. 

If you are a founder, would be happy to know the other side of the story.

What triggered layoffs ?

Let me explain in detail. 
 There are two parts to it and can be broken down basis PnL 
 1. Revenues : Sudden jump in tech( social media, e-commerce, ad tech, fintech, etc) plus supporting industries (chipmakers, laptop / device manufacturer) and the general economy with QE money  
 This impacted forecasts as most firms forecast AOPs basis historically trend (which clearly was an abberation) - this lead to higher HC estimates and rampant and quick hiring  
 Variable costs: CAC, customer support, sales incentive all spiked up as 1. Everyone was putting money (inc bidding price for key words) and 2. Huge customer inflow due to covid (edtech, e-commerce) that required support  
 Fixed costs: While office space / rents remained steady or dropped as % of revenue. This was offseted by fixed tech (software, hardware, people) costs and other costs like (legal, HR, Business, Marketing, supply chain, etc.) the talent was expensive to source plus their need was instant as you already had customer to be served  
 All of this lead to rampant hiring, inflated CTC, rosy forecasts, etc.  
 everyone had turned a blind eye to inflation implications (as for the past 30 Y no one saw a shooting inflation - hence the key decisions makers had now experience & idea about it) - till Dec’21 even FED said inflation is transatory. 
 It was the Ukraine invasion that opened people eyes. Oil went up, food prices went up, UK Europe saw an energy crisis etc 
 This made all the rosy forecast mentioned above duller as 1. Demand was expected to reduce due to higher cost of living 2. Capital became scarce as funding drired 3. Cost of capital (WACC) became expensive as hurdle rate climbed (which is rate of return for bond)  
 Management and investor panicked as they have limited partners (LP) to answer and quess who are these (big pension funds) so people’s pension money had come into startups which were not showing signs of exit for investors. 
 All in all - it is a pain we all have to bare for being exuberant in 2021-2022:

Growth Manager

What are some startups which once looked very promising will struggle to survive owing in finding winter of 23-24 ?

Funding winter may get over by next year

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