2023 Year in Review | VC funding for startups down 72% to $7.5 billion

Venture capital funding for startups declined by 72 per cent this year compared to last year as the turbulence in the sector made investors skittish, severely hitting late-stage fundraising. Indian new-age companies picked up $7.5 billion across all stages as of December 15 this year compared with $25 billion, according to data from Venture Intelligence.

The funding for late and growth-stage startups slowed as private market investors became selective in their approach. The fall in funding this year is largely attributed to sluggish late-stage deals (Series D and above), which more than halved to $3.5 billion from $11.70 billion in 2022.

The number of late-stage funding deals also fell to 56 from 122 in 2022, the data showed.