India draws high no. of VCs: Tracxn
Venture capital data tracker Tracxn believes that investors haven’t lost their appetite for Indian startups, as funding levels have risen again after a dramatic fall in March when covid-19 was declared a pandemic. With nearly a billion dollars invested in April and a number of large deals recorded in May, even disclosed funding seems to have bounced back to the pre-pandemic levels. However, no new term sheets have got signed in the past month and a half due to the pandemic effect.
“Most of the VC funds active in India raised money in the last two or three years. They have a substantial amount of dry powder to deploy if they think a particular company or sector is right,” observes Pankaj Makkar, MD, Bertelsmann India Investments. It has been noted that the VC’s focus shifted more to managing existing startups as a result of covid-19.
Further, edtech and gaming are becoming popular among the VCs. Industry experts predict that travel and hospitality sectors will take the longest time to recover and the shared economy model will take a hit.