Today: Jun 14, 2024

Angels cut cash flow: startup investments halved in 2023.

5 months ago

Key Points:

  • Angel investment in Indian startups decreased by half in 2023 compared to the previous year.
  • Super angel Kunal Shah invested in only 24 startups in 2023, down from 67 in 2022.
  • Snapdeal co-founders Kunal Bahl and Rohit Bansal also reduced their investments.
  • The total number of angel deals decreased to 420 in 2023, from 816 deals the year before.

Angel investment in Indian startups has declined significantly in 2023, reflecting the struggles faced by many new-age tech companies in securing funding. Data from Venture Intelligence shows that investments by angel investors halved in 2023 compared to the previous year. Super angel Kunal Shah, who is also the founder of fintech firm Cred, invested in only 24 startups in 2023, a significant decrease from the 67 investments made in 2022.

Shah’s decline in investments is mirrored by other prominent angel investors. Snapdeal co-founders Kunal Bahl and Rohit Bansal, who made 34 and 30 deals respectively in 2022, reduced their investments to 20 and 18 deals in 2023. Overall, the total number of angel deals in 2023 decreased to 420, down from 816 deals the year before.

The decrease in angel investments reflects the challenges faced by startups in securing funding as investors become more cautious. The decline may also be attributed to a lack of confidence among angel investors in the startup ecosystem due to various factors such as regulatory uncertainties and the impact of the COVID-19 pandemic.

Angel investors play a crucial role in the early stages of startup funding, providing capital, mentorship, and networking opportunities to entrepreneurs. The decrease in angel investments could have a negative impact on the growth and expansion of startups, particularly those in their early stages.

However, despite the decline in angel investments, some startups are still able to attract funding from other sources such as venture capital firms and strategic investors. These alternative sources of funding may provide startups with the necessary capital to continue their growth and development.

It is important for startups to diversify their funding sources and explore different avenues for securing investment. This could include participating in startup incubators and accelerators, leveraging government funding programs, and building relationships with potential investors through networking and pitching events.

In conclusion, the decrease in angel investments in Indian startups in 2023 highlights the challenges faced by new-age tech companies in securing funding. Startups need to adapt to the changing investment landscape and explore alternative sources of funding to continue their growth and expansion.