The Indian startup ecosystem is facing a funding crunch, with entrepreneurs struggling to secure capital needed for growth. Investors have adopted a more cautious approach due to global economic uncertainties, rising interest rates, and a shift towards prioritizing profitability over growth. This cautious sentiment has led to challenges in attracting investment, raising concerns about the sustainability and long-term viability of many startups. The funding environment is now highly competitive, with investors focusing on startups with proven business models and clear paths to profitability. Early-stage startups are particularly affected, facing layoffs, cost-cutting, and in some cases, closures. However, sectors such as health tech and fintech continue to attract interest due to their growth potential. Entrepreneurs are advised to adapt by building sustainable businesses and demonstrating clear value to potential investors.
