2018 has turned out to be a tough year for startups looking to raise capital, particularly for those based in Bengaluru and Delhi NCR. The shares of Bengaluru and Delhi NCR, which have the maximum number of startups in India, in terms of the number of early-stage or pre-series A deals, have gone down to 28% and 25% respectively this year, said a report by venture debt firm InnoVen Capital. While the current share for Bengaluru has been the lowest since 2015 (18%), Delhi\u2019s share has hit the new bottom since 2013 (24%). However, Delhi NCR\u2019s and Bengaluru\u2019s losses seem to be Mumbai\u2019s gain. The contribution of India\u2019s financial capital has increased to almost four times to 23% from a paltry 6% in 2017. Other cities that have recorded a higher number of deals this year are Hyderabad, Chennai etc. according to the report titled Early Stage Investment Insights Report-2018. Also read|\u00a0Patanjali IPO in next 1-month? Here\u2019s what Baba Ramdev says about listing \u201cThis is a very positive sign because you cannot be dependent on just two cities for early stage investments. It shows the active role being played by the angel networks or seed funds in other cities,\u201d Sunil K Goyal, Managing Director at early stage venture fund YourNest Venture Capital told FE Online. Overall, the amount of capital deployed at pre-series A stage till October this year went down by 26% to Rs 290 crore from Rs 480 crore last year, the report added. The number of deals too declined to 67 from 82 in 2017. Moreover, the average deal size fell to Rs 4.4 crore from Rs 5.8 crore in 2017. \u201cWith record funding and exits, courtesy Flipkart, the funding has been more concentrated in late-stage companies and the early-stage funding activity has been moderate, with a slight decline over 2017,\u201d said InnoVen Capital India\u2019s CEO Ashish Sharma. Investment value in late stage rounds (which includes Series C, D, E, F) went up to $3 billion across 36 deals - more than 250% increase from 2017, as per the 2018 startup report by Nasscom and Zinnov. \u201cIn 2015-16 new fund managers came up to invest at early stage in startups. However, after two-three years of investing they have realised that there is too much risk and too little potential upside. So suddenly there is 30%-40% drop in investment value,\u201d said Karthik Reddy, Managing Partner, Blume Ventures.