The global economy has been through a roller coaster ride lately, with unpredictable markets and macroeconomic events. However, seasoned investors see opportunities despite the volatility and uncertainty. One such opportunity is investing in India’s flourishing startup ecosystem.
Historical data shows that venture capital returns in the US increased significantly after the market collapse in 2008. Now in 2023, investors in Indian startups have the potential to see similar returns. Here are three reasons why FY24 could be a golden ticket for startup investors:
Firstly, ongoing market corrections have led to multiple valuation markdowns for unicorns such as BYJU’S, Swiggy, Ola, Meesho and OYO. While these markdowns may impact investors’ books, they create opportunities for investors to purchase equity in the right deals at lower prices.
Secondly, despite challenges, CY22 was a blockbuster year for Indian venture capital with 126 new funds worth $18 Bn being launched, and $3 Bn in Q1 2023. This created a funding winter for top investors, which can lead to better deals and valuations for emerging investors.
Finally, during tough economic times, building relationships with founders can be beneficial. Helping founders succeed can lead to good karma and a stream of referrals that bring unique deals to investors. India’s top 200 startups spent $25 Bn to earn $19 Bn in FY22, signaling a focus on profitability and creating opportunities for investors to assist in their success.
For those interested in investing in Indian startups, attend MoneyX; India’s largest Angel & VC conclave on 20th July 2023 at The Leela Ambience, Delhi-NCR. The invite-only conclave offers a platform for collaboration with leading LPs, GPs, Angels, Family Offices, and Institutional Investors. Attendees can learn from India’s top 1% investors through 20+ sessions across two stages and experience AI-powered matchmaking to create valuable connections.
Investing in Indian startups can lead to lucrative returns, especially in FY24. Investors can benefit from the ongoing market corrections, the dry powder of VC funds waiting to be unleashed, and helping founders succeed. Consider attending MoneyX to learn more about the exciting opportunities in India’s startup ecosystem.
