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AGIcoming
Google

Harsh realities of Indian startup ecosystem

-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
14mo ago
MedicalCar90
MedicalCar90
Incred14mo

The next decade will see average software salaries correct itself to 2012 levels in USA adjusted for inflation. That's inevitable with Generative AI. the number of PM's required will also decrease drastically

RedSenior
RedSenior
Google14mo

The most apt summary of the current market landscape i've come across

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