TLDR:
- Venture capital funding in February 2024 rose by 21% year-on-year, reaching $890 million across 114 deals.
- Most funding activity was seen in the early-stage category, with large deals averaging between $20-40 million.
The month of February saw a steady inflow of deals which led to a rise in VC funding by 21% compared to the previous year, with a total of $890 million raised across 114 deals. This positive trend is expected to continue in the near future, maintaining optimism in the Indian startup ecosystem. Despite not crossing the $1 billion mark, the increase in capital inflow is encouraging in the challenging macroeconomic environment.
Most of the funding activity was focused on early-stage startups, with smaller ticket sizes since mid-2022. The total number of deal transactions crossing 100 for the fourth consecutive month highlights the growing interest among investors to support startups. SaaS, fintech, and logistics were the top segments in terms of funding raised, with Bengaluru, Delhi-NCR, and Mumbai leading the cities in VC funding.
External factors, such as interest rates and public market health, will continue to impact the VC funding flow. A potential decrease in US interest rates and a positive stock market reception to IPOs of Indian startups could lead to an increase in VC inflow in the future.
