Startups facing "starter" trouble

A year ago, the only news we kept on hearing and reading was about start-ups; one after the other, it seemed as though no one was willing to work for anyone, everyone wanted to be their own employer. Yes, there was a time when almost all were starting a startup. But soon the bubble burst and things have slowed down.

Yet, India remains the third largest ecosystem for startups in the world – number one being USA and UK leading at two. But this year, 2016, there was come in a stagnancy. If Flipkart was the motivator then, it is precisely the reason why it has tapered down; Flipkart’s devaluation by many investors has most certainly affected sentiments. In this environment, fund raising for startups has also become very difficult.

The total funds raised by Indian startups are estimated to have fallen 20% (YoY) though the number of firms getting funded may increase to 650, up by a marginal 8%.  If earlier angel investors just wrote out cheques based on the idea, today they have become more wary – giving money only in tranches and linking funding to the performance, which means big funding rounds are not happening easily anymore.

Well, too much of anything is bad; moderation is the key to sustenance.