Startups write a $1.5-billion twist in winter’s tale
December brings the highest monthly fundraise of 2023, though the annual total is the lowest in 7 years.
December brings the highest monthly fundraise of 2023, though the annual total is the lowest in 7 years.
The terms, valuation and timing of OpenAI's funding round have not yet been finalised and could still change, the report said.
Investments till date at $7 billion for 2023; Oct-Dec least funded quarter since July-Sept 2016, show data
The study showed that the average annual flows in 2021/2022 surged to nearly USD 1.3 trillion, a twofold increase from the figures of 2019/2020.
In the first half of 2023, startups raised $3.8 billion through 298 deals. During the same time, in the first half of last year in 2022, a total of 729 deals were struck and $18.3 billion were raised. Before that, in the first of H1 of 2021, a total of 484 deals took place with $13 billion raised, according to PwC’s startup deal tracker.
Companies are also identifying people who were hired with fancy salaries and perks during the 2021-2022 hiring boom, but are not great performers.
During the year, average salary hikes handed out to employees were between 8% and 12%, a survey of over 200 startups by venture capital firm Elevation Capital revealed.
As several startups pivot their business model amid a growth slowdown, many employees want to distance themselves from the uncertainty. Headhunters are getting resumes not just from those laid off but also those looking to flee a sinking ship.
A large number of top executives have moved from unicorns to Series A and B firms or even down the chain in recent months – a move that reflects fund flows in the startup space.
Angel Tax has been a buzzword since the announcement of the budget in 2023 and even before. Startups are worried that the new tax amendments could be a double whammy for the startup community, which is already dealing with a funding winter. What are the implications? How will this impact the startup community? A detailed explainer is here.
Given the low base and huge demand, the digital lending industry remains in an expansive phase. According to a recent report by IIFL FinTech, the digital lending market is expected to grow to a whopping USD 515 billion by 2030.