Challenge will be met with hope in 2024
Startups with sustainable business models as well as well-capitalized startups are expected to overcome the current turmoil. 2024 can be a ray of hope as well as ‘challenging’ for them. According to venture capital firm Lightspeed, a two-year high or low cycle does not really affect companies that have been built over a period of 8-10 years. Venture capital firm Lightspeed has invested in companies like Byju’s, Magicpin and Oyo. Rahul Taneja, partner, Lightspeed, said that thus we consider the current situation as a part of the growth of our ecosystem. There will be consolidation, valuations will improve and even some companies will shut down but overall there will be growth in the end. Apoorva Sharma, managing partner of debt fund Stride Ventures, said that in general all lenders have been very cautious and the primary focus has been on ensuring asset quality. He said the average size is already in the range of around Rs 20 crore, which was around Rs 45-50 crore in 2021. If you look at venture capital investment, it will be around US $ 35 billion in 2021, around US $ 25 billion in 2022. This will be around eight billion US dollars in 2023. It is declining every year.