{"id":289950,"date":"2024-04-09T19:01:26","date_gmt":"2024-04-09T13:31:26","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=289950"},"modified":"2024-04-09T19:01:26","modified_gmt":"2024-04-09T13:31:26","slug":"funding-winter","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/funding-winter\/","title":{"rendered":"Funding Winter"},"content":{"rendered":"

Source<\/strong>– This post on Funding Winter<\/strong> has been created based on the article “Bets from big global VC firms fall 80% in India in 2023 amid funding winter<\/strong><\/a>” published in “The Business Standards<\/strong>” on 9 April 2024.<\/p>\n

Why in the news?<\/h2>\n

Investments from large foreign investors<\/span> in Indian startups has declined by 80% in 2023<\/span>. This is because of Indian startup ecosystem\u2019s funding winter.<\/p>\n

About Funding Winter<\/h2>\n
\"Funding
Source-Inc 42<\/strong><\/figcaption><\/figure>\n

Description<\/strong>– It is a term used to describe a period of reduced capital inflows to startups<\/span>. It is a cyclical effect that happens due to multiple factors which impact the free flow of investments in the market.<\/p>\n

Duration<\/strong>-The duration of a funding winter is unpredictable<\/span>. It may last for a long time depending on the multiple factors acting upon it.<\/p>\n

Factors responsible for funding winter<\/strong>– It can take place due to geopolitical unrest<\/span>, or monetary policies<\/span> and financial irregularities<\/span> in a country. It can also be centric to the relevant sectors.<\/p>\n

What is the effect of Funding Winter?<\/h2>\n

1) It is difficult to raise funding<\/span> and achieve sky-high valuations during funding winter for founders.<\/p>\n

2) It requires business owners to reset their priorities<\/span> in terms of profit maximization.<\/p>\n

3) During funding winter, start-ups take measures to save their working capital<\/span>.<\/p>\n

4) Expenditures<\/span> like the advertisement expenses, capital expenditures, and expansion plans are put on hold<\/span> in order to increase the sustainability of the firm.<\/p>\n

Note-
\nCapital Expenditure- <\/strong>It is money invested by a company to acquire or upgrade fixed, physical or non-consumable assets.<\/p>\n

Read more- Prabhaav Report on performance of Fund of Funds for Start-ups (FFS)<\/a><\/p>\n

UPSC Syllabus-Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source– This post on Funding Winter has been created based on the article “Bets from big global VC firms fall 80% in India in 2023 amid funding winter” published in “The Business Standards” on 9 April 2024. Why in the news? Investments from large foreign investors in Indian startups has declined by 80% in 2023.… Continue reading Funding Winter<\/span><\/a><\/p>\n","protected":false},"author":10374,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1],"tags":[11872,10503],"class_list":["post-289950","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-uncategorized","tag-9pm-daily-factly","tag-business-standard","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/289950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10374"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=289950"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/289950\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=289950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=289950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=289950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}