Even as private equity and venture capital investments into Indian startups have been on a downward trajectory after hitting a peak in Q3 2021, early-stage transactions have largely remained unscathed by the funding winter.
The share of early-stage (seed to Series A) deals in total funding has been growing quarter-0n-quarter as risk capital investors, sitting on massive dry powder, continue to chase founders with strong business ideas. Moreover, with the correction in valuations of some of these startups, investors are not hesitating to cut smaller cheques.