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Indian startups are in a technology bubble?

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By IE&M Research

According to a study by InnoVen Capital nearly 65% of startup executives and founders believe that the Indian startups are in a technology bubble, while 18% feel that the bubble was close to bursting soon. The study said that 63%, who attempted to raise funds in 2016, confirmed that they had an unfavourable funding experience with almost half of these not being able to raise any funding and the rest raised either a sub-optimal external round or a bridge round. Almost 75% of the set supposed that the startup ecosystem in 2017 will be driven by entrepreneurs, whilst 26% voted that investors will play the pivotal role. 94% startups are looking to raise funding in 2017, with VC-backed companies aiming to raise a median of $12.5 million. Difficulty in raising equity funding was voted as the top business challenge, followed by difficulty in managing talent and market creation. Focus in 2017 for majority respondents will be growth, however VC-backed companies opted for profitability as the primary factor to solve for. The respondents believe that in 2017, more companies with robust business models followed by more exits is most likely to improve investor sentiment.

About the author: IE&M Team

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