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Business

India’s Share of Global VC Funding Falls to 2.9% in CY23, the Lowest in Five Years: Data

The number of new unicorns in India also decreased, contributing only two out of the 71 globally, down from 22 in CY22.

New Delhi: In the calendar year 2023 (CY23), India’s share of global venture capital (VC) funding declined to 2.9%, marking the lowest since CY19, with total funding amounting to $7.3 billion. This drop is significant compared to CY22 when it reached $20.6 billion, representing 4.8% of the global figure, Business Standard reported.

The number of new unicorns in India also decreased, contributing only two out of the 71 globally, down from 22 in CY22, the business daily reported.

India’s share of total global deals fell to 3.6% in CY23 from 4.2% in CY22. Late-stage funding accounted for 9%, down from 12% the previous year, while mid-stage funding decreased slightly.

Early-stage funding increased from 75% in CY22 to 78% in CY23. Late-stage startups faced challenges in raising funds without compromising valuations, leading many venture capitalists to focus on smaller startups with lower risks.

The fall in China and India has also pulled down funding which has come to the Asian region. This has fallen by half from $105.7 billion in CY22 to only $53.4 billion in CY23, the newspaper said.

At a global level, it is clear that funding for startups has dried up. It fell to $426 billion in CY23 from $426 billion in CY22. Even though the US was able to garner VC funding of $132 billion in CY23, this was a slight drop from the $132.4 billion the previous year.