Indian Startups Raised $7.8 Billion in First Four Months of 2021
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Indian Startups Raised $7.8 Billion in First Four Months of 2021

What would happen if we feel as if things are slowing down around us, but actually some things are just catching up speed like never before? Well, imagine that you are on a ride in the amusement park, which seems to be quite slow and calm in its speed but when you get on to it, you realize that the speed is actually fast and it is much more fun than you expected it to be.

Our Indian economy has become much like that ride. Confused? Do not worry. Just keep reading. We have an explanation drafted out for you.

A fact known to all is that 2021 has been a rough year, for everyone. But what many of us may not know is that some startups in India have found their way out and have been successful in achieving something extraordinary.

As per the data from PitchBook, which is a US-based research firm, startups in India have been able to raise total investments of $7.8 Billion in the first four months of this new year.

This is really commendable mainly because this amount is nearly 70% of the total amount as raised in the whole span of 2020, which was $12.1 Billion. This new amount is also more than 50% of the corpus raised in the entire year of 2019, which was $14.2 Billion.

The pandemic has given much time to the blooming entrepreneurs to think about new business plans and design unique and concise business strategies for the same. But, even with the plans ready, funds are still a big task for the businesses to take care of, especially for startups.

Startups need to have a solid plan and solid support of funds from the investors. You will be glad to know that despite the halt due to the second wave of Covid-19, which is much more severe, investors have continued investing in the upcoming and emerging startups in India.

It is so remarkable that the average funding in 2021 too has increased by almost 70% from that of 2020 – increasing from $14.94 Million to $25.21 Million. As compared to the average fundings of 2019, which were worth $18.41 Million, the average fundings in 2021 have increased by more than 35%.

The number of deals done in these four months is 402, as compared to the 1,114 deals done in 2020, which is quite notable. There were a total of 1,036 deals done in 2019. So the progress in 2021, given the circumstances, is incredibly high.

This new size of the average number of deals is amongst the top ranks in the last 5 years. Many investors and experts in the field have stated that this increase in the average number of deals is mainly due to the high liquidity in the venture capital and the increase in the stock market prices, that is the bullishness, in the technology sector across private and public sectors, at a global level.

Due to the pandemic, many companies and firms have started adopting digital tactics in all their activities, to keep up with the pace in the global market.

So, companies have been facilitated by raising larger rounds with the help of digital platforms. The increase in the pace of investments is mainly due to the increase in liquidity over the global market.

In 2021, some companies have exceeded a valuation of $1 Billion, thus achieving the unicorn status. This has happened mainly because investors have particularly been conscious and appreciative of those startups which have been successful in not just surviving, but also growing and expanding during the pandemic.

This shows their resistance to major problems and makes them favorable firms to invest in. It forms a sense of reliability and confidence in the investors that no matter what the situation is, these firms can manage their worth and finances well. The number of investors willing to invest in these firms, thus, increases prominently.

Conclusion

All this clearly shows the future of startups in India. Startups have become the most convenient form of establishment for so many new business minds, who want to make their place known in the market and want to be recognized.

This sudden surge in the investments being done in startups is really beneficial for further entrepreneurs looking towards starting a new business as well as for our Indian economy. If you too are looking forward to making a good investment, then you can surely consider investing in startups.

The uniqueness and transparency that would get in startups these days are really good. If you want to read any more reviews, articles or updates, let us know the topics in the Comments Section below. Happy Investment!