The economic slowdown in US and Europe is expected to hit growth of Start-ups in India. Comment (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· A recent survey of early-stage VC investment firms, to understand whether the slowdown in VC investing in the US and Europe applied similarly to the Global South, showed that it is largely consistent with the experience in India
· Valuations are coming down, slowly (as is typical during VC slowdowns). On average, pricing of earlier-stage deals are 15-20 per cent lower, and later-stage deals by over 30 per cent.
· Sectors that serve India’s domestic consumption are likely to do fine, while others that are more deeply bound to demand from the US and Europe are likely to take a hit.
· From an early-stage VC perspective, companies in fintech, edtech, and mass e-commerce are likely to continue to do well, provided they are not in the group of later-stage overvalued companies that were pursuing growth-at-all-cost programmes.
· Most reckless-spending founders have now come to face the harsh truth growth-at-all-costs is no longer in vogue and the flood of abundant capital has ended.
· The philosophy today is to identify companies with the holy trinity of success solving problems for the masses, sound unit economics, and resilient founders.
· Finally, it boils down to the founders’ resilience and agility. It is not for nothing that they say, tough times never last but tough people do.
yogendra pratap singh 2 years
Kindly Review
IAS Parliament 2 years
Try to include data to support your answer. Keep Writing.
PANDI SANTHOSH RAJA S 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
K. V. A 2 years
Pls review
IAS Parliament 2 years
Good attempt. Kepe Writing.
