VCs keep purse strings tight despite raising more capital

Domestic and global investors, who have raised record funds over the past year, have mostly held on to their unallocated capital in the first six months of 2023 when startups witnessed a substantial drop in funding.

Prominent investors focused on India, which have typically backed portfolios in growth and late-stage rounds, have moved downstream towards funding early stage (including seed to Series A) companies amid increasing uncertainties caused by global macroeconomic headwinds.