The total funding in the startup ecosystem dropped to $6 billion in the April-June period, owing to macro-economic slowdown, a 17% fall quarter-on-quarter (QoQ) as per a Nasscom report. The total number of deals – or the volume – stood at 204 down from 247 in January-March.
Further, 52% of the funding rounds had a ticket size of $100 million or above – a trend that broadly remained unchanged. The growth stage was the most funded one, the report showed. Interestingly, there was a drop in the funding of early-stage companies.
“Fintech has emerged as the top funded vertical, followed by media and entertainment. Though the number of deals dropped as compared to previous quarters, it was dominated across most sectors by growth stage, indicating the confidence the investors continue to have in the sector,” the report explained.
“Despite the reduction in the total deal value, funding in late stage start-ups in Q2 CY22 is at par compared to Q1 CY22 indicating the investors’ preference for already scaled start-ups,” it added.
The report said the media and entertainment space was an outperformer in the quarter. Investors like Sequoia and Tiger Global were the most active across sectors in Q2 CY22 with 15 and 14 deals each. Alpha Wave, Accel followed with eight and six, respectively.
The quarterly investment factbook – co-published by Nasscom and PGA Labs – further highlighted that 70% of deals by volume were below $25 million.
Startup funding dropped 17% in April-June quarter: Nasscom
Further, 52% of the funding rounds had a ticket size of $100 million or above - a trend that broadly remained unchanged. The growth stage was the most funded one, the report showed. Interestingly, there was a drop in the funding of early-stage companies.
