Reasons Why The Funding Winter Could Be Good for Startups

A startup is a business that is just starting. Startups are created by one or more business owners who desire to provide a good or service they feel there is a market for. Klaus Hommels while expressing views on startups, strongly believes that a startup is not one-man work, it requires clear objectives, funds, coordination, and operations for a successful execution.

Since the epidemic, venture capital funding in India has significantly decreased, with only $25 billion raised in the current year, a 40% decrease from the previous year. For entrepreneurs, this could turn out to be a gift in disguise because it forces them to reconsider their strategies and come up with fresh concepts for business models and growth strategies. There has been a substantial reduction in funding for many businesses as a result of the VC business model, which focuses on producing extraordinary returns from a small portion of their investments. As a result, there have been huge reductions in staff and widespread layoffs, and there is also ongoing pressure to raise money.