The stubbornly high inflation in the US and the indigestion of the excesses driven by record-breaking funding in 2021 could mean startups are yet to face the worst of the downturn, according to the US-based venture capital firm General Catalyst’s Managing Director Deep Nishar.The comments follow a big slump in global venture capital investments through the first half of 2023. Between January and June, VC funding halved to about $170 billion compared to the same period last year, with startups across stages suffering a hit, as per data from PitchBook.
Asia has tracked the global trend due to fewer late-stage deals, but the pain in India seems deeper, with a near 80 percent drop in H1 2023 to just about $4 billion, which marked the worst six-month period in four years. Venture Intelligence data put the pain on display: India startup funding in June fell to a 34-month-low.
