Is India Ready For The Next Investment Wave?

The Bigger Picture
It is expected that India shall become a global trade and financial super power. Not only that, it is the most attractive Asian market at the moment. But the question still remains that will India be able to sustain and fund itself.

Where on one hand India is the global startup hotbed, on the other hand IT industry is slipping through fifth consecutive year of slow growth. Do we have enough good bets to play on?

What are the challenges before us? One: digital penetration, two: inadequate early-stage-funds, three: long term viability of propositions. Is someone even checking that?

Ground-Reality
We ought to dream big after all we have got it all, talent, ideas, zeal and angels too. Venture capitalists who missed the bus in 2015, do not wish to lag behind in the successive-rounds of funding Indian startups.

Post 2015's landmark funding worth more than $9 billion, the positive trend is still continuing in 2016. Though staggering at $1.5 billion after the first quarter via 300 deals in total, entrepreneurs are confident that they will soon receive adequate funding.

The most prominent investors come from China, Germany, Singapore, Dubai and USA. A total of almost 400-500 angel seed investors have cracked the hard nut in the Indian startup ecosystem. With all sectors gaining attention likewise, right from hospitality, insurance, retailing, dating, food and beverages, housing etc.

Various enablers and operational startups in India show, how little support they have received from foreign investors. Indian companies have merely received 7 -8% from angel investors as early-stage funding; in contrast to 75% in the US's startup scenario.

The story began with Tiger Global Management purchasing a slice of Flipkart in 2010, forcing many smaller competitors to shut down due to cash crunch. Since then large leaders have been so plugged in the Indian startups that it has been difficult to pull them out.

You must have heard about firms like Sequoia Capital and Accel partners which pretty much dominated the scenes for 4-5 years. Well it time now that the winds of change blow again. Indigenous players both locally and abroad have woken up to realize the immense potential India possesses.

All eyes locked upon us
The Indian entrepreneurial community would agree on this fact that, several new sectors like manufacturing technology, disruptive business ideas are welcomed more than anything these days. The time is ripe enough to focus on tech-centric ventures, with robust revenue models with space for using artificial intelligence.

The government, too, has initiated several policy reforms and regularization initiatives in order to boost indigenous ventures, especially during the early stages of their growth. With the country's investment landscape evolving and growing at such a rapid pace, 2016 could well end-up being The Year of Early Stage Funding for Indian startups.

To name a few we have a list of 10 VC investors who are eager to target the Indian ecosystem full-time. The list - Helion Venture Partners, Harmony Partners, 500 startups, Stripes Group, Vellos Partners, Blume Ventures, Maverick Capital, Beenext, Intel Capital, Stanford Angel and Entrepreneurs.