Investment opportunities are too big to miss, say VCs

Funding winter seems to be the buzzword in the Indian startup ecosystem, but seasoned venture capitalists investing in startups across various stages are not worried about the trend as the opportunities are just too big to miss.

At a panel discussion on the topic ‘Lessons from trenches: 10 years of investing & the way forward’ at TechSparks 2022, the flagship event of YourStory, the four panelists were unison in their view that this so-called funding winter will pass.

Setting the tone, Gopal Srinivasan, Chairman, TVS Capital Funds, said, “Smart people who know exactly what to do are ready for the winter and know this is followed by spring.” He felt India is the place to be as there is opportunity and the requisite talent available.

Providing statistics on the strides made by the tech startup ecosystem, Sudhir Sethi, Founder and Chairman, Chiratae Ventures, said, the startup ecosystem has registered a revenue of $35 billion this year and has recorded a growth of around 35 percent annually for the last three years. He predicted that revenue from this ecosystem may touch $200 billion in the next five years.

“If one takes the exuberance of last year away, the gradient is upwards. Every industry goes through ups and downs, where one rebuilds strategies and life goes on,” Sudhir said.

At the same time, the funding slowdown being witnessed at present is directly connected to the global factors where many things like cheap capital and energy along with free trade principles are changing. All these elements have now shifted to the other side and this has resulted in a negative impact.

However, Ashutosh Sharma, Head of Investments-India, Prosus Ventures, said, “Who is the beneficiary of all this? India is the net beneficiary and we are among the top three investable countries now.”

This can be gauged by the interest shown by investors who are referred to as limited partners (LPs)—those who invest their money into venture capital firms.

Amit Somani, Managing Partner, Prime Venture Partners, said, “The amount of LP interest I have seen in the last six months in India is probably more than what I have seen in the last eight years.”