Allaying fears of a pessimistic growth and drying up of funds, Indian startups have displayed a high growth potential during the H1 of the year 2021. During this period, startup funding touched $10.1 billion (H1 2018: $3bn; H1 2019: $5.9bn; H1 2020:$4.2bn). The number of deals has been 543. There has been an impressive addition of 15 new unicorns. What are the key trends that uptick the startup growth? Here are the highlights:-
Reasons for Growth
- Advent of experienced second-time startup entrepreneurs has boosted investor confidence.
- 3X Growth in unicorn production up-surged unicorn investments.
- After a long dry spell, the global markets started looking up during 2021.
- With people spending more time at home, as the spells of lockdowns continue, there is an increased demand for digital products developed by startups.
- Many startups were proactive in the deployment and servicing of cutting-edge technologies like AI, Augmented Reality and IoT.
Indian start-ups are adaptable to the fast-changing scenario. They ensured continuity of business during interruptions and prioritized cost reduction and technology upgrading. These measures took them through a path of recovery amid the pandemic crisis and also to attract more investments.
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SIDBIs are providing loans to startups to meet liquidity needs. According to you, what more the Government of India can do to boost the performance of startups.