Startup funding in the time of economic slowdown: YourStory’s funding report for Jan-Sep 2019
Whether it's election season or an economic slowdown or the regulatory impediments that act as roadblocks for growth, startups in India have had their share of issues to deal with this year. What they haven’t had to deal with, however, is a drying up of funding. India's growing crop of disruptive startups has continued to attract investor interest, even amid obvious signs of an economic slowdown.
According to YourStory Research, the research arm of YourStory Media, startup funding trends in the first nine months of 2019 show healthy investor interest in Indian startups. During a period that saw India’s General Elections, evidence of an economic slowdown, and even some regulatory and taxation issues, Indian startup funding trends managed to buck the trends seen in the overall macro economy.
Homegrown Indian startups raised $7.67 billion in the nine-months ended September 30, 2019, down slightly by around four percent from $8 billion in the comparable period in 2018. As far as the number of deals go, startup funding deals were just three deals short of the total 606 deals seen in the comparable period last year.
The data-driven funding report for the period of January to September 2019 by YourStory Research, the research arm of YourStory Media, provides an in-depth overview of the emerging trends in investment activity in the Indian startup ecosystem.
Source: YourStory Research
The report also highlights the sectors favoured by investors, the most active VC firms, and all the big and small deals that dotted the period, keeping the ecosystem thriving at a time when traditional industries became conservative with their spending.
YourStory Research's nine-month startup funding report also reveals the diversity of sectors that raised maximum funds, sunrise sectors, new startup hubs, and challenges. It also throws light on startups that have attained ‘unicorn’ status and those waiting in the wings as ‘soonicorns’.
And finally, the report gives an overview of how the third-largest startup hub in the world held its ground despite a slowdown that has pushed India two spots behind in global GDP ranking.