Startup investors have become choosy, feel VCs
Venture capitalists are of the opinion that setting sights on easy money could be a thing of the past for startups, and investors would prefer to be more diligent in evaluating their investment in new firms. However, the startup scenario remains dynamic enough with hundreds of deals being struck in different sectors, they add.
The recently concluded Huddle Global startup conclave organized by Kerala Startup Mission (KSUM) in the Kerala capital, witnessed major discussions on the topic, and in one of them that dwelt upon the outlook on funding in the year ahead, Roma Priya, founder of Burgeon Law, a new age law firm for startups and investors, said the time of several investors chasing the same startup has ended and in the last couple of years they have become choosy in picking the firms to invest in.
Startups need to prove their worth
Fledgling enterprises that aspire for funding are expected to prove their worth before they got the investment, she said. Rajesh Sawhney, the founder and CEO, GSF Accelerator, who moderated the talk, said startups still have a very bright future ahead as India can be the software developer of the world, besides catering to the large domestic market.
Noting that some of the southern states like Kerala have a GDP which is probably more than countries like Pakistan and Bangladesh, he said, efforts should be made to tap into the strengths they have, like educated population and a strong healthcare network, which can provide a launch pad for successful startups.
Picking up on the theme, Brij Singh, Investor and Venture Capitalist, said Kerala has a diaspora spread across the globe, but most of them return home after successful careers abroad. Ways should be found to utilize their wealth and create a favourable ecosystem for startups, Singh said.
Firms relocating to smaller towns
Dr Vaibhav Kapoor, whose Prystin Care became healthtech unicorn two years back, said that there is a reverse migration happening from big cities as some firms are relocating to smaller towns to enjoy a better quality of life as the main IT centres like Bengaluru and Gurgaon are facing problems like acute pollution and traffic gridlocks.
The panel agreed that even in second and third tier cities of India, there is enough opportunity for startups to raise needed funds. Once they become successful, venture capitalists and financiers would come looking for them, they said.
