Aurojyoti Bose, Lead Analyst at GlobalData, explains that the challenging economic scenario globally had an adverse effect on investor sentiment, leading to subdued VC funding activity in key markets like India.
“Owing to the challenging economic scenario, investor sentiment had a dent globally. As a result, several key global markets, including India, have experienced subdued VC funding activity. The steep decline in funding value could also be a signal of prolonged funding winter and severity of investor cautiousness,” Bose said.
Bose added, “Apart from macroeconomic challenges and recession fears, concerns around startup valuations also seem to take a toll on investor sentiments in the country.”
Bose stated that India was among the top five global markets in terms of both VC funding deal volume and value. However, India has experienced a relatively more significant impact compared to the United States, China, and the United Kingdom.
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