Funding winter is over

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? 🤔

There is so much negativity around startups right now due to the market cycle since 1.5 years and because of a few bad names but I think overall startups have created massive opportunities in terms of wealth creation, up skilling and giving major breaks to people to learn faster. I think this is largely a founder driven issue as they simply want to be cool and startup for the sake of it but I’ve also seen founders that are committed and passionate however is getting difficult to recognize them and find companies actually building a good product that is solving good problem statement AND not get toxic culture. Can people share some examples in the last 5 years of such founders/startups so we can discuss them more and get some positivity on this platform?

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

The data is from Carta and mostly North American companies.

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

ngmi - not gonna make it

-Online brands are expanding offline to achieve scale -Late stage startups are gearing towards profitability earlier than planned -Biz models built on behavior during Covid are struggling (like edtech) -Startups which got funded due to TikTok ban are struggling -Finfluencers are soon expected to struggle -Credit Fintech w/o NBFC license is a struggle -Very few consumer content startups frm India are seeing scale and profitability -RMG is struggling due to regulations -India focused creator economy startups finding it difficult to scale -PLG led Indian SaaS startups not able to cross $20M ARR -Some VCs finding it tough to raise without DPI -Public markets thrashing innovative/vanity metrics of pvt VC funded cos. and their pvt market valuations -Series B and beyond is tough, down round/flat round is now common - Deals happening at single digit ARR multiple for SaaS valuations - Web3 startups not getting funded - Most GenAI startups not able to build any defensibility - Most B2B Commerce startups are not able to increase gross margins or reduce NWC - CACs are ever increasing - Compliance issues at many startups - Layoffs to continue - startups which got funded in 2021, will soon be out of runway - no liquidity event for vested ESOPs in most Indian startups - secondaries happening at 35% discount in some cases - deal closure times have become 2x - less FOMO amongst VCs - More instances of M&A falling through

Hello everyone, I'm Varun, the co-founder of Mesa School of Business. We’re Asia’s first startup focused business school focused on fostering the next generation of startup leaders in India. Prior to Mesa, I was a Sr. Product Manager at Amazon in Seattle, and did my MBA from Kellogg School of Management. I'd love to chat with you folks about my journey in building Mesa, my thoughts on higher education, 0-to-1 building, amongst other things. Ask me anything! :) I'll be back at 5 pm and start answering.

Remember the time when we were surrounded by 5-6 startups making waves every day? They were the talk of the town, with incredible growth, innovative offerings, massive hirings, and funding galore. We couldn't stop discussing their latest feats! But lately, it feels like a different era, with a cloud of negativity casting a shadow. Dear Indian startup ecosystem, you have a history of miracles and game-changing moments. We believe in your potential to inspire, innovate, and motivate the youth. Let's bring back that magic and remind everyone why we're at the forefront of global innovation. 🇮🇳💡 It's time for something great, something remarkable. Let's reignite the spark and make headlines for all the right reasons!