Startups and Unicorns in India
The Funding Winter of 2022-23
After a boom in 2021, funding fell sharply as interest rates rose and investors became cautious, forcing layoffs and cost cuts.
Startup money is cyclical.
The boom
2021 saw record funding and many new unicorns.
The turn
Rising global interest rates and tech share price falls made investors more careful.
Consequences
Startups cut jobs, delayed hiring and focused on profitability.
Recovery
Funding later stabilised at lower, more selective levels.
Layoffs
A well-funded firm reduces staff to extend its runway.
Assuming easy money lasts
Cycles turn.
Key takeaways
- 2021 was a boom.
- Rising rates cooled funding.
- Layoffs followed.
- Funding became selective.
No recording for this one yet - EconReader can read it aloud for you.