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Inc42 recently released its Indian Tech Startup Funding Report. It is only accessible to Inc42 Plus members.
This is the summary of the report with the best insights.
Thread
This is the summary of the report with the best insights.
Thread
New startups launched ― 1050
No. of Unicorns ― 42
Total funding raised ― $11.5Bn
Total deals made ― 924
Top Startup Sectors ― Fintech
Top Startup Hub ― @peakbengaluru
Top Startup Investor ― @Sequoia_India
No. of Unicorns ― 42
Total funding raised ― $11.5Bn
Total deals made ― 924
Top Startup Sectors ― Fintech
Top Startup Hub ― @peakbengaluru
Top Startup Investor ― @Sequoia_India
No. of startups launched this year is lowest in the past 12 years i.e., 1050.
The annual average is just a little above 4000.
The highest was in 2015 ― 8000!
2nd highest was in 2016 ― 5200
PS: TVF Pitchers was released in 2015. Should I connect the dots!?
The annual average is just a little above 4000.
The highest was in 2015 ― 8000!
2nd highest was in 2016 ― 5200
PS: TVF Pitchers was released in 2015. Should I connect the dots!?
Funding In comparison to 2019, the total funding fell by 10% but the no. of deals increased by 14%.
In 2020 the average ticket size ($12.4Mn) was 21% lower than in 2019 ($15.7Mn).
The drop in the average ticket size and dip in the mega-rounds (>$100Mn) indicates a drop in investor confidence :/
Due to COVID-19 Investors were more cautious with big rounds.
Mega startup funding deals fell by 15% compared to 2019.
Due to COVID-19 Investors were more cautious with big rounds.
Mega startup funding deals fell by 15% compared to 2019.
Early-stage Funding Total capital raised at the seed stage was nearly double that in 2019.
2020 - $403Mn <> 2019 - $255Mn
Enterprise tech and EdTech were the most preferred sectors at the seed stage.
This is great for the Indian Startup Ecosystem!!!
Sectors The top 3 startup sectors by funding amount were:
• FinTech ($2.1Bn)
• Enterprise tech ($1.7Bn)
• Consumer Services ($2.1Bn)
The top 3 startup sectors by No. of Deals were:
• FinTech (131)
• Enterprise tech (128)
• EdTech (101)
EdTech climbed the ranks in 2020 due to COVID. Both in terms of funding amount and the no. of deals.
Another hot sector was e-commerce largely fuelled by India's D2C rush.
Another hot sector was e-commerce largely fuelled by India's D2C rush.
Startup Hubs Bengaluru was the top startup hub both in terms of funding amount and deals. Bengaluru startups have got more funding than Delhi and Mumbai combined over the past six years.
The ease of starting up in these hubs is HUGE!
Merger and Acquisitions The M&A count was 27% lower in 2020 than in 2019. This has been on a decline since 2016. Mention any reason you can think of.
EdTech sees most M$As in 2020 with our favorite one WHJr :)
VC @Sequoia_India leads the way in Top10 VCs with a deal count of 42.
Top 3 VCs with their deal count & notable investments.
• @Sequoia_India (42) ― @unacademy & @CRED_club
• @Accel_India (24) ― @BeCureFit & @airmeet_com
• Tiger Global (18) ― @Dream11 & @BYJUS
Early Stage VCs Lets Venture leads the way in Top10 VCs with a deal count of 50.
Top 3 Early Stage VCs
• @letsventurein
• @vcatsindia
• @100X_VC
This data was only till 17th December.
This is the mini version of the report. The full version will be released on 11th Jan 2021.
I'll cover the complete report in more such threads which include in-deep sector breakdown, VC analysis, etc.
Stay tuned, RTs are appreciated :)
This is the mini version of the report. The full version will be released on 11th Jan 2021.
I'll cover the complete report in more such threads which include in-deep sector breakdown, VC analysis, etc.
Stay tuned, RTs are appreciated :)
Link to the original report: https://inc42.com/reports/the-annual-indian-tech-startup-funding-report-2020/
