Investments in Indian startups turn out to have reached pre-Covid level.

When the coronavirus epidemic began and global economizing hit pause, many questions skinned abreast of investments, mergers, and accessions. But India’s startups and therefore the tycoon behind them – the risk capital ecosystem – have taken stock of the coronavirus pandemic, and money is starting to stream into the businesses again.

According to a report by TiE Delhi NCR and Zinnov, "startup funding and deal activity have​   recovered to pre-COVID levels by September 2020",​ while four Indian startups even become unicorns during the worst months of the pandemic. “India is on target to possess 8 unicorns in 2020 – almost a comparable number of additives as in 2019,” said the report.

But it's ethical to notice that investors have placed ‘safe bets’ on startups this year as they continued to support late-stage startups, while early-stage or seed-funded startups saw their funding line-up fall. “More than 55% year-on-year decline in seed and early-stage funding​  in CY Q2 2020,”​ said the report.

This had also occurred during a dip in valuations for startups. For founders who are within the initial scenes of their journey, it seems significant to require the cash available and be reasonable about the valuations that accompany it. “Even during the good Recession of 2008 within the US, startup valuations across each round for subsequent years had reduced by 30% on the average from the previous year. But within the end of the day, permanently businesses travel by good founders, getting the proper valuation isn't a challenge,” Ankur Mittal, Co-founder, Inflection Point Ventures, had told Business Insider in an earlier interaction.

And experts are positive. “Investor sentiment has also recovered quickly and that we​   expect the Indian unicorn club to steadily expand through 2020 and 2021. Although COVID-19 has been a serious setback for the ecosystem, we believe that the changes that the pandemic has brought on will make our ecosystem much stronger, across every dimension. India is on a path to possess 100 unicorns by 2025,”​ said Rajan Anandan, President, TiE Delhi-NCR.